Help needed - contracting work.
Aug 2nd 2006 | 2:13 am
#1
Thread Starter
Forum Regular
Joined: Dec 2005
Posts: 46
Help needed - contracting work.
I've just left my job as we're leaving for Oz on 17th.
BUT they've just called to say they can't afford to lose my expertise ( nice ) and ask whether I'll be able to subcontract from Oz.
In principle there's no problem it's IT based so as long as there's a broadband conenction I can physically do it BUT what do I need to check re tax , pay etc, If I was based in the UK I could use an umbrella co to reduce my liability.
But I obviously don't want to be liable for UK and Oz tax (double jeopardy etc).
Any ideas on the best way to progress this ?
Neil
BUT they've just called to say they can't afford to lose my expertise ( nice ) and ask whether I'll be able to subcontract from Oz.
In principle there's no problem it's IT based so as long as there's a broadband conenction I can physically do it BUT what do I need to check re tax , pay etc, If I was based in the UK I could use an umbrella co to reduce my liability.
But I obviously don't want to be liable for UK and Oz tax (double jeopardy etc).
Any ideas on the best way to progress this ?
Neil
Aug 2nd 2006 | 2:46 am
#2
Forum Regular
Joined: Jul 2006
Posts: 117
From: Mount Lawley, WA
Re: Help needed - contracting work.
Similar boat here - last day of my contract today, may be doing some more work from Oz, but won't hold my breath!
As I understand it you should never pay tax twice, you pay it in the country you are resident in. I believe that if you register as non-resident for tax purposes with the UK tax office you then don't pay tax in the UK and then have to declare it on your Australian tax return.
However - don't quote me on that, I haven't looked into it in too much detail yet (read that as I'm gonna wing it...
)
No idea about the existence or otherwise of umbrella companies in Oz - I don't use one.
As I understand it you should never pay tax twice, you pay it in the country you are resident in. I believe that if you register as non-resident for tax purposes with the UK tax office you then don't pay tax in the UK and then have to declare it on your Australian tax return.
However - don't quote me on that, I haven't looked into it in too much detail yet (read that as I'm gonna wing it...
)No idea about the existence or otherwise of umbrella companies in Oz - I don't use one.
Aug 2nd 2006 | 2:51 am
#3
Brisbane bound
Joined: Sep 2004
Posts: 389
From: Brisbane
Re: Help needed - contracting work.
Originally Posted by scallyuk
I've just left my job as we're leaving for Oz on 17th.
BUT they've just called to say they can't afford to lose my expertise ( nice ) and ask whether I'll be able to subcontract from Oz.
In principle there's no problem it's IT based so as long as there's a broadband conenction I can physically do it BUT what do I need to check re tax , pay etc, If I was based in the UK I could use an umbrella co to reduce my liability.
But I obviously don't want to be liable for UK and Oz tax (double jeopardy etc).
Any ideas on the best way to progress this ?
Neil
BUT they've just called to say they can't afford to lose my expertise ( nice ) and ask whether I'll be able to subcontract from Oz.
In principle there's no problem it's IT based so as long as there's a broadband conenction I can physically do it BUT what do I need to check re tax , pay etc, If I was based in the UK I could use an umbrella co to reduce my liability.
But I obviously don't want to be liable for UK and Oz tax (double jeopardy etc).
Any ideas on the best way to progress this ?
Neil
). I had decided it was going to be worth getting professional advice - Alan Collett posts on here and seems to have a good reputation, have a read of his website which has a few good fact sheets:http://www.collettandco.co.uk. Please note this isn't a personal recommendation as I didn't use him in the end, but hope it helps
Cheers
Martyn
Aug 2nd 2006 | 3:21 am
#4
Just Joined
Joined: Jun 2005
Posts: 13
From: Ocean Reef, Perth
Re: Help needed - contracting work.
Hi Neil,
I've been contracting for a UK company since I moved to Australia 15 months ago. I went to the trouble of setting up a pty limited company in Oz and this company has the contract with the UK. I am tax resident is Oz and my company receives funds in GBP but pays me in AUD. I pay no tax in the UK. You don't need to set up a company though, it's simpler to be self employed.
I've been contracting for a UK company since I moved to Australia 15 months ago. I went to the trouble of setting up a pty limited company in Oz and this company has the contract with the UK. I am tax resident is Oz and my company receives funds in GBP but pays me in AUD. I pay no tax in the UK. You don't need to set up a company though, it's simpler to be self employed.
