Article by GoSimpleTax

The UK’s long-lasting love affair with Australia continues. In fact, it’s growing even stronger, with record numbers of Brits now heading to the Land Down Under.

A significant increase in working holiday visas (WHV) is a key driver. Changes to WHV rules (the age limit has gone up by five years to 35) means many more Brits can go and work in Australia for up to three years. While some continue to move permanently, some 50,000 British citizens a year are in “Straya” on a WHV. You may be one of them or considering becoming one. Naturally, you will want to know what tax you’ll pay.

Did you know? About 1.1m people in Australia are UK born, making up 14% of its overseas-born population and 4.3% of the total Aussie population.

What Australian tax will you pay as a WHV holder?

• WHV holders are taxed as non-residents under Australian tax rules.
• If you earn wages in Australia, your employer will deduct tax from your earnings at working holiday-maker rates. Bank interest and dividend payments may also be taxed by the Australian Taxation Office (ATO) at non-resident rates.
• Tax rates for working holiday makers for the 2025/26 tax year are:
  • 15% on earnings up to AUS$45,000 (£21,650);
  • $45,001-$135,000 (£21,650-£65,000) $6,750 plus 30c for each $1 over $45,000;
  • $135,001-$190,000 (£65,000-£91,500) $33,750 plus 37c for each $1 over $135,000 (source: ATO).

Need to know! Before you start work in Australia, you must apply online for a tax file number after getting your visa and then complete a TFN declaration for your employer. 

Paying UK tax in Australia on a WHV

If you leave the UK to live and work abroad, and meet certain conditions (typically, you work full-time abroad and remain outside the UK for at least one tax year), thanks to split-year treatment, UK tax on employment income stops when you leave the UK. So, your Aussie wages are not taxable in the UK.

Alternatively, you can remain a UK tax resident for the full tax year and pay UK tax on your Aussie income, but you can claim a UK tax credit for any Aussie tax paid, thanks to the UK and Australia Double Tax Agreement. Such agreements prevent double payment of tax by people and businesses in two countries.

• You’re non-resident if you: spent less than 16 days in the UK within a tax year (or 46 days if you have not been a UK resident for the three previous tax years); worked abroad full-time (averaging at least 35 hours a week), spent fewer than 91 days in the UK and worked no more than 30 of them.

Normally, you must pay tax on your UK income, even if you’re not a UK resident or you’re living and working in Australia on a WHV. This can include pension payments, wages from UK employment, savings interest and rental income.

Need to know! If you receive income from the UK, such as rental income, dividend payments or interest, you’ll also need to declare it in your Australian tax return. The Australian tax year runs from 1 July to the following 30 June.

Paying UK tax on UK rental income

Many Brits who go to live and work in Australia for a few months or more or rent out their home in the UK, which can help to pay their living costs Down Under.

If you earn more than £1,000 from renting out a UK property or properties, it’s subject to Income Tax once your total UK taxable income goes over the Personal Allowance threshold (£12,570 a year in 2025/26).

If you live outside of the UK for six months or more a year, HMRC classes you as a “non-resident landlord”. You can get the full amount of rent from your tenant(s) and pay tax on it to HMRC via Self Assessment. If so, you must apply by filling out the NRL1i form, which you send to HMRC.

Alternatively, any tax payable can be deducted by your letting agent or tenant, who must pay it to HMRC. They will deduct the basic rate of tax from the monthly rent (minus their expenses if they’re an agency) and give you a certificate at the end of the tax year showing how much tax they’ve deducted.

You must keep accurate records of your rental income and tax expenses you claim, because HMRC can ask for proof of your figures. You must keep your income and expense records for at least five years after the filing deadline.

Need to know! As a landlord, you can claim “allowable expenses” to cover things you pay for to rent out your property. This can reduce your UK tax bill significantly.

How to report your taxable UK income from Australia

If you live in Australia and have taxable UK income to report to HMRC, you must fill out and file a Self Assessment tax return (SA100), as well as resident supplementary pages (the SA109 form) to report your residence and domicile status.

• If you earn UK taxable rental income, you must also complete and file supplementary tax return pages SA105.
• You may need to file other supplementary pages, depending on your taxable UK income sources.

Need to know! You cannot use HMRC’s online services to file your Self Assessment tax return and supplementary pages if you’re living in Australia. You can either fill out the forms by hand and send them back by post (which is a faff), pay a UK-based accountant to sort it all out for you (which is the most expensive option) or use commercial Self Assessment filing software (which is cheaper and simple enough).

• The UK tax year runs from 6 April until 5 April.
• The online filing deadline is midnight on 31 January following the end of the tax year to which the tax return relates.
• You need to register for Self Assessment if you haven’t done so before.

What if you were UK employed or self-employed before you came to Australia?

If you move to Australia part way through a tax year, UK tax authority HMRC will treat you as a UK resident for the portion of the tax year when you were resident in the UK. If you qualify for “split-year treatment”, you won’t pay any UK tax on Aussie earnings after you leave the UK.

However, you could have UK tax to pay on income from self-employment, renting out property or other sources. If so, obviously, you’ll need to fill out and file a Self Assessment tax return to report your taxable earnings while you were still resident in the UK. 

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Your year-end tax health check: are you missing any allowable expenses?

Article By GoSimpleTax

Whether you’re thinking about winding down this festive season or perhaps are busier than ever, the Self Assessment deadline is approaching. This means it’s never been a better time to look over your business and its numbers – and ensure it all stacks up.

One area that deserves your attention is allowable expenses. Why? Because research released by mobile business account ANNA Money found that the average self-employed individual leaves hundreds of pounds unclaimed every year – £840 to be exact.

What’s more, one in five of those surveyed complained they are simply not sure what they can and can’t claim. So, to avoid missing out on money that’s yours, keep reading to find out how you can make sure your records are complete and accurate before filing your return.

1. Start gathering the relevant information

Instead of going head first into expenses and filing, it pays to gather the core documents that are required for your Self Assessment. This includes:

Income records

• Invoices
• Bank statements
• Sales records from platforms like Etsy, PayPal, Stripe and Shopify
• Cash book (if relevant

Business expenses

• Receipts
• Invoices
• Mileage logs
• Home-office calculations
• Records of equipment purchases

Other income

• Interest
• Dividends
• Rental income
• Benefits of grants received

You’ll also need your Unique Taxpayer Reference (UTR) number and your HMRC sign-in details.

2. Check for allowable expenses

Lots of people underestimate their true business costs. Here’s a round-up of the most commonly forgotten expenses:

Home office expenses

If you work from home, you may be entitled to claim:

• A proportion of rent/mortgage interest
• Council tax
• Utility bills
• Broadband
• Phone charges
• Home-office equipment

You can also use HMRC’s flat-rate home-working allowance if it’s easier. And there are handy tools online to help you calculate what you could claim.

Travel and mileage

Don’t forget:

• Business mileage (45p for the first 10,000 miles, then 25p after)
• Public transport
• Parking
• Accommodation for business trips

Unfortunately, commute costs to your regular workplace won’t count. But if you are travelling to a temporary or client location, it does.

Professional fees and subscriptions

These often get missed:

• Accountant or bookkeeping fees
• Software subscriptions
• Industry-specific memberships
• Professional training relevant to your current work

Marketing and admin expenses

• Website hosting and domain names
• Advertising
• Business cards
• Office supplies
• Printing, postage and stationery

Equipment and tools

This includes:

• Computers
• Laptops
• Tools
• Cameras
• Office chairs and desks

When you see how many allowable expenses there are, you can understand why it’s so important to log every purchase made through your business throughout the year.

3. Review your records

Next up, it’s time to run through your bank statements month-by-month. Ask yourself:

• Was this a business purchase I never recorded?
• Do I have a receipt somewhere?
• Did I use my personal card for business?

4. Double check the disallowed

While many expenses are allowable, others are not. This includes:

• Personal spending
• Clothing (unless protective wear)
• Fines
• Client entertainment

In short, if an expense isn’t wholly and exclusively for your business, it likely won’t qualify.

5. Invest in approved software

While you could manually check your accounts for allowable and disallowed expenses, there is also software that does the job for you. In fact, it’s like having a digital tax assistant that ensures your return is accurate before you file, by flagging missing expenses, checking for errors and updating your tax owed in real time.

So, what are you waiting for? Leaving everything until the 31st January deadline makes self-employment more stressful than it needs to be. Run your tax health check today and file with confidence. 

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The 31st January rush: Your no panic Self Assessment checklist

Article by GoSimpleTax

Every year, January brings with it the same pressure for self-employed individuals: the Self Assessment deadline. So, if you’re feeling behind or overwhelmed, you’re not alone.

Last year, on deadline day, over 730,000 people submitted their returns, with tens of thousands filing in the final hour before midnight.

That’s not to say you should follow suit. The key to avoiding panic is to not rush and follow a clear plan. That’s where our no-panic checklist comes in – walking you through exactly what to do, in the right order, so you can file confidently and on time.

Step 1: Confirm you need to file a Self Assessment

Before you go any further, make sure Self Assessment applies to you. You’ll usually need to file if you:

• Are self-employed as a sole trader
• Earned money from freelancing, contracting or a side hustle exceeding £1,000
• Received income not taxed automatically through PAYE

This means that even if self-employment isn’t your main job, you may still need to file if you earned above the trading allowance. If you’re unsure it’s always better to check now rather than risk penalties later.

Step 2: Understand the deadline (and what happens if you miss it)

The most important date to remember is the 31st January. By this date, you must:

• Submit your Self Assessment tax return online
• Pay any tax you owe to HMRC
• Make your first payment on account, if required

If you miss the deadline, HMRC automatically issues a £100 late filing penalty – even if you don’t owe any tax. Plus, there’s risk of interest and additional penalties the longer it’s left.

Knowing this upfront helps you to prioritise filing – even if you’re short on time.

Step 3: Gather everything you need

Trying to file without the right information can be stressful. So, before you start, gather:

• Your Unique Taxpayer Reference (UTR) number
• National Insurance number
• Total income for the tax year
• Invoices, bank statements or sales records
• Details of any PAYE income or benefits
• Records of business expenses

Step 4: Review your income carefully

A common mistake is forgetting to include all income. Make sure you account for:

• All invoices (paid or unpaid)
• Cash payments
• Tips or commissions
• Online or platform-based earnings
• Side hustle income alongside a PAYE job

Even small amounts should be included. Tax software, like GoSimpleTax, can guide you through this step to make sure nothing is missed.

Step 5: Check allowable expenses

Allowable expenses mean you can potentially take deductions from your bill, and therefore reduce what you have to pay. Common examples include:

• Travel and mileage
• Phone and internet costs
• Software subscriptions
• Marketing and advertising
• Office supplies
• Use of home as an office
• Professional fees (accountants, memberships)

Lots of people miss key expenses because they don’t realise what they can and can’t claim. Taking time to go through them all can make a real difference.

GoSimpleTax even has a handy calculator to help you see how much you could claim if you work from home.

Step 6: Understand your tax bill and payments on account

Before submitting, it’s wise to understand your total bill for the year, when the payment is due and whether payments on account apply to you.

If HMRC asks for payments on account, you’ll usually need to pay this year’s tax bill and an advance payment towards next year’s bill. This can come as a surprise but it’s completely normal and knowing in advance helps avoid any panic.

Step 7: File your return online

Filing online using HMRC-recognised software like GoSimpleTax helps remove stress by:

• Asking questions in plain English
• Automatically calculating your tax
• Guiding you step-by-step
• Submitting directly to HMRC

Plus, if you’re unsure at any point, GoSimpleTax also offers:

• Free Self Assessment webinars
• Step-by-step filing guides and videos
• Clear explanations tailored to self-employed users

Step 8: Pay your tax by 31st January

Submitting your return is only half the job. Payment must reach HMRC by 31st January. Late payments can result in interest and additional charges, even if you submitted your return on time.

To avoid any issues, be sure to use the correct payment reference and allow time for bank processing.

Your no-panic Self Assessment checklist

Before 31 January, make sure you’ve:

✔ Confirmed you need to file
✔ Gathered all income records
✔ Reviewed allowable expenses
✔ Checked your tax bill and payments on account
✔ Submitted your return
✔ Paid HMRC on time

The deadline doesn’t mean late nights or panic. But to get things right, it’s best to start now. So, follow the above steps and use a tool like GoSimpleTax to get it done with confidence.

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About GoSimpleTax

Record Income, Expenses and tax submission all in one.

GoSimpleTax is the solution for non-residency returns, the self-employed, sole traders, freelancers and anyone with income outside of PAYE.

The software will provide you with hints and tips that could save you money on allowances and expenses you may have missed.

Get started with GoSimpleTax today, it’s free to try