Payments from US and UK
Jul 28th 2004, 7:36 pm
#1
Guest
Posts: n/a
Payments from US and UK
It's come to pass that my financial situation has got a bit more complicated.
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
Jul 28th 2004, 8:00 pm
#2
Banned
Joined: Aug 2002
Posts: 7,613
Re: Payments from US and UK
Originally posted by Ian ORourke
It's come to pass that my financial situation has got a bit more complicated.
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
It's come to pass that my financial situation has got a bit more complicated.
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
Better research what tax breaks there are, eg home working.
Jul 28th 2004, 8:30 pm
#3
Guest
Posts: n/a
Yeah, the basics are: I get the income, I declare it.
It's some of the specifics I get lost on: Will I have to work as a contractor under a public limited company in Australia - or can I just send my old employer and invoice (made it up in Word), file it and declare the money?
I will take extra advice, as I may be able to put costs against the amount for tax purposes (the international calls, consumables, etc). Who knows.
Just wondered if anyone had done it so to speak.
My tax situation is simple in the UK at the moment, it's all PAYE. In Australia, stuff like this contract work won't be taxed at source, so I'll have to 'spend it' being aware there is a tax bill coming for much later....going to do my head in
It's some of the specifics I get lost on: Will I have to work as a contractor under a public limited company in Australia - or can I just send my old employer and invoice (made it up in Word), file it and declare the money?
I will take extra advice, as I may be able to put costs against the amount for tax purposes (the international calls, consumables, etc). Who knows.
Just wondered if anyone had done it so to speak.
My tax situation is simple in the UK at the moment, it's all PAYE. In Australia, stuff like this contract work won't be taxed at source, so I'll have to 'spend it' being aware there is a tax bill coming for much later....going to do my head in
Jul 28th 2004, 8:38 pm
#4
Banned
Joined: Mar 2003
Posts: 4,432
Re: Payments from US and UK
Originally posted by Ian ORourke
It's come to pass that my financial situation has got a bit more complicated.
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
It's come to pass that my financial situation has got a bit more complicated.
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
Jul 28th 2004, 8:43 pm
#5
Guest
Posts: n/a
Re: Payments from US and UK
Originally posted by Megalania
Paid as royalty (passive income) to Aus company: US withholding tax 10% (credited agaont Aus Co tax). Aus tax on retained profits (ie after expenses) 30%. Individual tax rate on dividends or wages paid from Co.
Paid as royalty (passive income) to Aus company: US withholding tax 10% (credited agaont Aus Co tax). Aus tax on retained profits (ie after expenses) 30%. Individual tax rate on dividends or wages paid from Co.
Both sources of income are 'work for hire' arrgenements, its just the freelance writing doesn't involve an invoice. At the moment any freelance writing work paid to me by a US company has no US tax (though I should declare it for UK purposes). There also is no Aus company, there is just me - or readings between the lines is that a suggestion 'I' need to be a company to do this?
We shall see how it works when I query the accountants.
Last edited by Ian ORourke; Jul 28th 2004 at 8:46 pm.
Jul 28th 2004, 9:09 pm
#6
Banned
Joined: Mar 2003
Posts: 4,432
Re: Payments from US and UK
Originally posted by Ian ORourke
Err, that makes no sense whatsoever to me, but over my head
Both sources of income are 'work for hire' arrgenements, its just the freelance writing doesn't involve an invoice. At the moment any freelance writing work paid to me by a US company has no US tax (though I should declare it for UK purposes). There also is no Aus company, there is just me - or readings between the lines is that a suggestion 'I' need to be a company to do this?
We shall see how it works when I query the accountants.
Err, that makes no sense whatsoever to me, but over my head
Both sources of income are 'work for hire' arrgenements, its just the freelance writing doesn't involve an invoice. At the moment any freelance writing work paid to me by a US company has no US tax (though I should declare it for UK purposes). There also is no Aus company, there is just me - or readings between the lines is that a suggestion 'I' need to be a company to do this?
We shall see how it works when I query the accountants.
"Passive Income" = royalties = business tax flexibility.
Jul 28th 2004, 10:12 pm
#7
Forum Regular
Joined: Jun 2004
Location: Melbourne, AUS
Posts: 113
Re: Payments from US and UK
Originally posted by Ian ORourke
It's come to pass that my financial situation has got a bit more complicated.
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
It's come to pass that my financial situation has got a bit more complicated.
When I move to Australia I will be receiving payments for freelance writing, and consultation work (I'll have to invoice my old company).
Anyone done this? And are they aware of any issues?
For instance, do I need to set-up my own ltd company to raise invoiced and the like?
My wife is going to go into business herself in Australi while being affiliated with a US company. The IRS can be nasty if they feel you're trying to escape what they think is their due. She'd rather spend the money on said accountant than find herself with an IRS warrant the moment she visits the US again.
Mike
Jul 29th 2004, 7:27 am
#8
Guest
Posts: n/a
Oh I agree, in fact in virtually all my posts I've said this is what I am doing, but some sort of 'I've don this before advice' in my head for when that process begins might have been useful.
But yeah, get proper advise, no problem on that one.
But yeah, get proper advise, no problem on that one.
