Storing date/times as UTC in database

It's good that you are attempting to store the dates and times as UTC. It is generally best and easiest to think of UTC as the actual date and time and local times are just pseudonyms for that. And UTC is absolutely critical if you need to do any math on the date/time values to get timespans. I generally manipulate dates internally as UTC, and only convert to local time when displaying the value to the user (if it's necessary).

The bug that you are experiencing is that you are incorrectly assigning the local time zone to the date/time values. In January in the UK it is incorrect to interpret a local time as being in a Summertime time zone. You should use the time zone that was in effect at the time and location that the time value represents.

Translating the time back for display depends entirely on the requirements of the system. You could either display the times as the user's local time or as the source time for the data. But either way, Daylight Saving/Summertime adjustments should be applied appropriately for the target time zone and time.

You don't adjust the date for DST changes based on whether you're currently observing them - you adjust it based on whether DST is observed at the instant you're describing. So in the case of January, you wouldn't apply the adjustment.

There is a problem, however - some local times are ambiguous. For example, 1:30am on October 31st 2010 in the UK can either represent UTC 01:30 or UTC 02:30, because the clocks go back from 2am to 1am. You can get from any instant represented in UTC to the local time which would be displayed at that instant, but the operation isn't reversible.

Likewise it's very possible for you to have a local time which never occurs - 1:30am on March 28th 2010 didn't happen in the UK, for example - because at 1am the clocks jumped forward to 2am.

The long and the short of it is that if you're trying to represent an instant in time, you can use UTC and get an unambiguous representation. If you're trying to represent a time in a particular time zone, you'll need the time zone itself (e.g. Europe/London) and either the UTC representation of the instant or the local date and time with the offset at that particular time (to disambiguate around DST transitions). Another alternative is to only store UTC and the offset from it; that allows you to tell the local time at that instant, but it means you can't predict what the local time would be a minute later, as you don't really know the time zone. (This is what DateTimeOffset stores, basically.)

We're hoping to make this reasonably easy to handle in Noda Time, but you'll still need to be aware of it as a possibility.

EDIT:

The code you've shown is incorrect. Here's why. I've changed the structure of the code to make it easier to see, but you'll see it's performing the same calls.

var tzi = TimeZoneInfo.FindSystemTimeZoneById("AUS Eastern Standard Time");
var aussieTime = TimeZoneInfo.ConvertTimeFromUtc(DateTime.UtcNow, tzi);
var serverLocalTime = aussieTime.ToLocalTime(); 
var utcTime = serverLocalTime.ToUniversalTime();

So, let's think about right now - which is 13:38 in my local time (UTC+1, in London), 12:38 UTC, 22:39 in Sydney.

Your code will give:

aussieTime = 22:39 (correct)
serverLocalTime = 23:39 (*not* correct)
utcTime = 22:39 (*not* correct)

You should not call ToLocalTime on the result of TimeZoneInfo.ConvertTimeFromUtc - it will assume that it's being called on a UTC DateTime (unless it's actually got a kind of DateTimeKind.Local, which it won't in this case).

So if you're accurately saving 22:39 in this case, you aren't accurately saving the current time in UTC.