Jump to content
House Price Crash Forum

Archived

This topic is now archived and is closed to further replies.

Patfig

Income From Overseas

Recommended Posts

Hi All

I am about to receive some income from a company down under that I have an interest in.

Tax will be charged on it down under before I receive it.

I am wondering if any of you guys get income from overseas and if so how easy is it to declare / how do you decalre it?

Will it be taxed twice?

Can it be declared in $ or do I have to transfer it to the UK and declare the GBP value.

Not sure how this all works

Cheers in Advance

PF

Share this post


Link to post
Share on other sites

Hi All

I am about to receive some income from a company down under that I have an interest in.

Tax will be charged on it down under before I receive it.

I am wondering if any of you guys get income from overseas and if so how easy is it to declare / how do you decalre it?

Will it be taxed twice?

Can it be declared in $ or do I have to transfer it to the UK and declare the GBP value.

Not sure how this all works

Cheers in Advance

PF

As a former accountant (too far removed from the game), I'm not going to advise you on current tax protocol (sorry - :( )

But, when Santander bought out Abbey National, a large proportion of our client base suddenly had to fill in the foreign income pages of tax returns overnight.

What is the money being received for? Interest on a loan? Return on a bond? Dividend income?

Share this post


Link to post
Share on other sites

Double taxation treaty - don't bother declaring it in the UK I would think. Make sure you are actually due to pay tax in Oz. If you're not you should be able to get a credit from the ATO.

Share this post


Link to post
Share on other sites

Hi All

I am about to receive some income from a company down under that I have an interest in.

Tax will be charged on it down under before I receive it.

I am wondering if any of you guys get income from overseas and if so how easy is it to declare / how do you decalre it?

Will it be taxed twice?

Can it be declared in $ or do I have to transfer it to the UK and declare the GBP value.

Not sure how this all works

Cheers in Advance

PF

You declare it in your tax return. There's a box for the gross amount, and another for tax paid in the country where it originated. Fill both, and HMRC can see it's already taxed.

Not sure about declaring it in $. I asked them the reverse question (re: US$ income): Do I have to declare the original $ amount, or can I declare it as the net £ amount that appears in my bank account after charges? They were fine with the latter. But that was money that arrives untaxed after I went to the (very considerable) trouble of filling in the relevant forms to avoid US tax.

Share this post


Link to post
Share on other sites

If it's not very much (few hundred IIRC) then it's easy to include in your tax return, there's a box in the main section where you put it and note the WHT. If it's more than this then you have to fill in the foreign income section of the tax return, I remember doing this for the same shares so I guess they upped the limit.

It's not onerous, you put the company name, country and the tax withheld. If filling in a paper return you need to request the separate section, online (I switched to last year) you just tick a box to get the pages.

Edit: I don't know about the currency translation rules, I get mine converted into sterling when paid so there's no argument to be had.

Share this post


Link to post
Share on other sites

You declare it in your tax return. There's a box for the gross amount, and another for tax paid in the country where it originated. Fill both, and HMRC can see it's already taxed.

Not sure about declaring it in $. I asked them the reverse question (re: US$ income): Do I have to declare the original $ amount, or can I declare it as the net £ amount that appears in my bank account after charges? They were fine with the latter. But that was money that arrives untaxed after I went to the (very considerable) trouble of filling in the relevant forms to avoid US tax.

Thanks Porcy

This money will appear in my bank account next week so I assume I dont have to declare it until I fill in my return end of April 2014?

Share this post


Link to post
Share on other sites

As a former accountant (too far removed from the game), I'm not going to advise you on current tax protocol (sorry - :( )

But, when Santander bought out Abbey National, a large proportion of our client base suddenly had to fill in the foreign income pages of tax returns overnight.

What is the money being received for? Interest on a loan? Return on a bond? Dividend income?

Mangerial services ( I am a shareholder too)

Share this post


Link to post
Share on other sites

That's right.

Some countries do not have a double taxation treaty with Oz, which means the ATO WILL take their slice and you have to hope you can offset it against your income in the other country. The ATO webpages are actually pretty damn good for a gvt department - I've always found doing my own research produces better advice than paid for advice from an Australian tax accountant (and I have used a few - mostly they fail to think of all the implications of cross border stuff, such as currency movement implications).

However, if it is the UK that you live in, you should be OK for offsets.

Share this post


Link to post
Share on other sites

I think you declare what you get and the charge is a deductable but its my accountant who deals with that sort of stuff. Not had an Au$ for ages though.

Share this post


Link to post
Share on other sites

I think you declare what you get and the charge is a deductable but its my accountant who deals with that sort of stuff. Not had an Au$ for ages though.

Thanks Sarah

It is actually NZ$ though :)

Share this post


Link to post
Share on other sites

Thanks Sarah

It is actually NZ$ though :)

I don't think I've ever had nz$. :)

I opened a US$ account with my business bank after explaining I was unhappy at paying £5 for putting cheques in in $. They then charged me £5 for putting each cheque into that. We negotiated that I'd pay £5 per bundle of cheques but I so rarely get any cheques these days its almost irrelevant.

The did turn AU$ into £ as if it was US$ once. Which amused me. They did correct it though.

Share this post


Link to post
Share on other sites

If I leave this money down under what do I write on my tax return? Can I enter NZ$ amounts on there and let them do a conversion at whatever exchange rate they deem it to be? I cant get my head round this one as I dont want to really transfer it all to GBP.

Share this post


Link to post
Share on other sites

I think your approach may not be the right one. How much could you trust a stranger on t'internet on the complexities of tax law. Useful for 'considerations' to help frame questions but no more I would suggest.

You don't need to employ an accountant. Ring the tax office, they are generally very helpful.

point taken

Share this post


Link to post
Share on other sites

I think your approach may not be the right one. How much could you trust a stranger on t'internet on the complexities of tax law. Useful for 'considerations' to help frame questions but no more I would suggest.

You don't need to employ an accountant. Ring the tax office, they are generally very helpful.

That's what I did, in my case it's just bank interest. I declare it as overseas bank interest, converted into Sterling using HMRCs published annual spot rate.

Share this post


Link to post
Share on other sites

That's what I did, in my case it's just bank interest. I declare it as overseas bank interest, converted into Sterling using HMRCs published annual spot rate.

Thanks Bruce

Do you have a link to HMRCs annula spot rates?

Share this post


Link to post
Share on other sites

I think your approach may not be the right one. How much could you trust a stranger on t'internet on the complexities of tax law. Useful for 'considerations' to help frame questions but no more I would suggest.

On the other hand, many of us have done it. I used to just put Canadian savings account interest as Canadian dollars in the foreign income section and convert it to pounds. I suspect it wasn't entirely 'by the book', but they never questioned it.

Ring the tax office, they are generally very helpful.

But don't necessarily know any more about tax law than a random Internet poster.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.