elksa

I'm discussing with my company the possibility of continuing to work for them when I move out to Oz.

Has anyone else done this? and if so what did you need to do?

What happens with regards Tax? do I pay tax to the Inland Revenue or the Oz Tax Office?
How are you paid? In £'s to an english account or in A$'s to an Oz account
What about pensions or superannuation?
What about other benefits you may be entitled to through the company, such as, healthcare, travel expenses?

Any past experience and or advice would be much appreciated.

Thanks.

wmoore

Sounds like a real minefield to me. Can your company's accounts fept shed any light on it?

tooter

I'm doing this with my company too and they are allowing me to do it for 6 months where I will still be paid in local currency and not A$. Everything will stay the same for 6 months (except I will be working in Oz doing europe hours) and then for tax purposes we will need to review after the 6 months.
Not quite sure what happens then but I believe there are tax implications after the 6 months.

elksa

So you'll be paying UK tax then transferring the money over?

Hutch

We're doing this. Not exactly the same as we run our own company and will simply continue to service existing clients. There's a tax agreement between Oz and the UK whereby you only have to pay tax in one place. We're going to continue with a Ltd UK company, UK bank accounts etc. It's actually less of a minefield than you might imagine

tooter

yep thats what I'm doing....less hassle. Probably works out better money wise too;-)

spalen

From my limited experience: ( I am doing same but too lazy to sort out tax so paiyn gtax in both countries :-( ).

You have the choice( I think) of either remaining a tax resident in UK or becomign a tax resident in Aus.

If you declare Aus status then you transfer the money over Gross, your UK Co stops paying Income tax + NI for you (you do a P85 to arrange this). If you do pay UK tax then there is an agreement with Aussie Tax Office that they take only he delta between what UK took and what Aus would have taken. Ie if UK is 40% and Aus is 48% the aussies want their 8%. Which is what will happen to me because I paid tax in UK.

Then you pay Aussie income tax rates which you must declare via an annual return along with a cheque (at some point) each July...

OR you can stay UK Tax resident which means you pay top rate of aussie tax on any income that comes here ( less what you already paid on it in the UK).


But... best of all talk to an accountant (whichh I am now realising I should have done 6mths ago ;-) .

Kiwipaul

I'm not sure this is correct for earned income it's def wrong for investment income.

With investment income you split the tax between the 2 countries. So for investment income earned in the UK you pay 10% tax and you pay the balance to Oz taxman.

If you pay 20% tax to the UK taxman the oz gov will only allow you to claim 10% as tax paid and demand their share of the rest. It's then up to you to claim the 10% differnce back from the UK taxman.

So for investment income in the above example if you paid 40% to the UK taxman the Oz taxman would demand a futher 38% (assumeing you are in the 48% tax bracket) and it's up to you to claim the 30% back from the UK taxman.

I've been doing this for 8 years now but to NZ but the principle is the same and as the OZ taxman dosn't distinguish between investment income and earned income to them it's just income.

spalen

I did caveat it with - speak to an accountant - when I spoke to one that was the adviceI got.