You would still be domiciled in Australia but you are currently a tax resident of the UK. As you've been in the UK for more than 183 days you have to pay UK tax on your earnings. There is however a billateral tax agreement with Australia so if you can show you have paid tax there on these funds then you should be ok. Having said that, you should be paying tax here. So any funds you are receiving here (if they are paid gross) you should pay tax on.
Quote:
Originally Posted by Oz2UK
Hi, I'm new to site but have read some interesting comments. Thank you.
I'd really appreciate any guidance on our situation:
My family came from Oz to UK 2 yrs ago for 6 months to see UK family. Due to their serious health issues we have stayed on longer. I have a small Oz business (Pty Ltd) that I've been drawing an income from and have just found out that we should have submitted a P86 and tax returns for the period we've been here.
We intend to do this right way to set things right. It was a genuine misunderstanding and I hope th HMRC are reasonable with this.
My first question is that on the P86 under Domicile. Q 11 asks whether "your travel costs have been borne by your employer?" . As this is about Domicile can you help me understand the relevance? Does this mean that if your Oz employer (my own business) has paid for my travel costs to UK I'm less likely or more likely to be considered as Domiciled in UK?
Secondly, as we may be here for another 6 months (total 2.5 yrs) and even possibly longer, and have flexibility on how we set things up. Eg a UK company etc .., what is the best way to handle income from overseas. There may be some small amounts earned here in UK too.
Thank you for sharing any experience you have.
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