Tax Return for Client in Australia

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T.C.
T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
I am preparing account for my client who has moved to Australia. His accounts are for business premises that he rents out in the UK. Is there anything different I should be thinking about for the Tax Return?

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  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
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    Travel costs:lol::lol::lol:

    No seriously, does he have any other form of income?

    Poodle
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    No other income in the UK.
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
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    T.C. wrote: »
    No other income in the UK.

    What about Australia?

    It is important for tax purposes to establish a person's residence status in a tax year. A person who is resident in the UK is taxed on their worldwide income and gains.

    You should refer to this

    http://www.hmrc.gov.uk/pdfs/ir20.pdf

    But be aware that following the Gaines-Cooper case Mr Darling anounced changes to the day count rules wef 6th April.

    http://www.hmrc.gov.uk/budget2008/bn102.pdf


    Poodle
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    I think you're missing the point Poodle.

    This person is not resident in the UK.
  • beverly hudson
    beverly hudson Registered Posts: 95 Regular contributor ⭐
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    Dean the fact that TC client lives in Australia may well not be, obvious, that they are not resident within the UK, but Poodle did point TC in the right direction that may not have warranted such a 'curt' response by you which you did not back up with an alternative suggestion.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    Apologies for my curtness.

    Here is some more constructive advice:

    - Use Poodle's links to establish whether UK resident or not.

    If non UK resident then:

    - Your client is subject to tax only on income arising in the UK.
    - This includes income from any properties situated in the UK.
    - Accounts are prepared in the same way as normal.
    - Personal allowances can probably still be claimed. Certainly if your client is a citizen of any commonwealth country.

    If you have not done so already then the following forms should have been completed:

    - P85: To advise HMRC of your intentions when leaving the UK.
    - NRL1: Application to receive rental income gross as a non-resident landlord.

    If the forms are not completed then either your tenant or your letting agent is obliged to deduct tax at source on the rent and pay that to HMRC on your behalf.

    Applications are not normally denied unless you have a chequered self-assessment history.

    Hope that helps.
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