Traceykin

Hi Group

I am hoping to move to OZ (with hubby & daughter) but still be able to keep my work contract I have in the UK . I am self employed and all my work is done via email and the internet so in theory as long as I have internet we could live anyway .

What are the tax implications in the UK and OZ if I do this ? and what is the best way to go about this I have been told I should still keep my UK bank account open, this way I could get paid via a bacs payment straight to my UK bank account and transfer the money over to OZ.

Also will this be the same circumstances for if we rent out our property in the UK and transfer any remaining money over to OZ.

Many thanks

Tracey

Bermudashorts

I would see an accountant if you are planning to set up in this way. In a nutshell, you should pay tax on your earnings in the country you are resident in (Australia), unless you have a UK incorporated company?

For your rental income you should arrange to have it paid to you before tax (ask the estate agent for the non resident form), declare it on your UK tax return and pay over any tax due at the end of the year. You would then also declare it on your Australian tax return and if you paid any tax in the UK, you can deduct this from any tax due in Australia. Whether you remit the money to Australia or not is not relevant for tax purposes.

Anyway that is the jist of it, but really I would recommend you use an accountant. Also whilst your situation appears flexible, income in one currency and expenses in another is always less than ideal and I would want to establish a new customer base asap if I were you.

neil248

As for the work I do exactly what you intend to do and have done for 5 years. Money is paid into UK account and the transfered over here.

If you are tax resident here you pay tax to the ATO not the Inland Revenue.

Your biggest problem as you no doubt know is the exchange rate. I would check that the purchasing power of UK pounds over here makes it worth your while.

ABCDiamond

Register as a business here in Australia, (including for GST), invoice the UK for your income, claim back any Australian GST costs you incur (Stationery, Power, Internet, Computers, etc). All income is Australian with no UK involvement. The ATO send you a GST refund every year. You pay ATO any tax on profit each year. Simple... but then, I was an accountant

You can use your UK bank, especially good for the convenience of customer(s). Although Paypal is also an easy way for some people to pay.

Traceykin

I am so glad you wrote this, this will make my hubby happy as I was thinking & talking about the same thing last night to hubby, setting up an Australian business and bank account and getting my self employed work paid straight to my OZ bank account via an invoice, that way I could claim my expenses over in OZ & pay any taxes due to the ATO and dissolve my business with IR over here. All the work will be done in Australia anyway and I might have to come over to UK once a year for meetings but could always set up webcams if necessary.

Many thanks
Tracey

ps What does GST stand for?

Traceykin

Many thanks Neil for your reply. But I think I will go with ABC Diamond advice and set up an OZ business & bank account. It just seems so much more straight forward to me but lets hope it is. lol

Hubby will be earning the main income and mine will just be a top up & I would be bored out of my head staying at home doing nothing so taking my work contracts over with me just seems like the perfect way to live in OZ & that little bit of money to help us get set up.

Wendy

GST = Goods and Services Tax. The equivalent to UK VAT...it's 10% here

http://en.wikipedia.org/wiki/Goods_a...Tax_(Australia)
http://www.ato.gov.au/businesses/con...tent/20724.htm

ABCDiamond

A tax deductible trip of course

Wendy has explained GST, but for the record, you would NOT charge GST(VAT) on overseas invoicing, but you can claim the GST(VAT) back on your expenses.
Hence, a refund every GST period.
You don't HAVE to register and claim it back though...

Traceykin

Well that has definately got to a plus to living in OZ as VAT goes up to 20% 4th Jan definately not a good thing to help UK get back on track but lets face it UK is finished now & I don't think I could put my thoughts down in a public forum lol

Traceykin

Well funny you should mention this but I was thinking along the same lines myself last night

ABCDiamond

I used to love doing my tax return

BudBrain

Not wanting to hijack your thread but I'm in a similar(ish) position.

Are you using this job for your visa requirements or your OH's job? I only ask I'm hoping there is a way to maybe setup a small-business (just me) and use that for entry (as its a full-time wage).

Traceykin

Hi

We all got our visa via hubby's job. His job was on the MODL list, we are both self employed here in UK. Hubby wants to work for a company & I want to carry on working from home (kid & dogs) so just need internet although I have been told internet is not so easy to come by & there is a waiting list. Also my part time work would only give a small income so no were near enough to live on but hopefully pay for dogs & maybe a holiday.

ABCDiamond

Most areas have Internet available with no problems, and no waiting, although not all will have the full 24Mb speed service at a decent price.

I am having to make do with an 8Mb service until a non Telstra company can get access to our exchange. However, that is my choice to wait.

Telstra can give me 24Mb now for $79 pm, but I am waiting till I can get the same provider that gives a 24Mb service for $29 pm in the next suburb.

Traceykin

That is so good to hear you can get internet with no waiting, we were looking to live just outside Brisbane so I am sure their would be no problem with the internet. 8mb is ok to get me up & running I just might have to do unsociable hours to get the most of it but I would definately grab the 24mb at $29 but that is a big jump in price.