Setting up Ltd Company
#1
Forum Regular
Thread Starter
Joined: Aug 2007
Posts: 205
Setting up Ltd Company
Anyone working in Oz as an IT contractor through a limited company as is done in the UK? is it possible to do this over there or do the tax rules prevent it?
#2
Re: Setting up Ltd Company
This is not professional advice, but we looked into setting up a Ltd company in Oz and it seems very like the UK system. You can chose whether to keep your UK company and have it as a subsiduary of your new Oz company or set up afresh. I don't remember seeing any restrictions on IT contractors - but I wasn't looking for them!
Hopefully somebody in the know will come along soon.
Hopefully somebody in the know will come along soon.
#3
Forum Regular
Joined: Nov 2007
Location: Cleveland QLD
Posts: 63
Re: Setting up Ltd Company
Yea done it earlier this year ... rules very similar ... even kept the same name but with a "pty" before the ltd ... don't know how tax will equate as my accounts don't need to be in until end Feb (I ended up paying about 18/19% in the UK)
I just phoned a couple of local accountants ... picked one of them ... really easy process all done in a few days ... think it cost me about $1200 to set up
If you are employing your partner for example (as UK it's tax efficient) you'll need Workcover ... in QLD you do anyway ... but it's only about $150 however public liability / professional indemnity was really costly I shopped around and eventually got a quote for c$1500 ... but the bigger agencies demand it (eg Hays)
Agencies are the same as the UK don't care until a role comes in then chase you like mad ... then you hear nothing ... lots of Govt / Local Council depts require you to complete a selection criteria ... or at least they do in my field (IT Outsourcing / Business Change / Service Management) ... and there are some Govt depts (eg ATO) how wont employ you unless you are an Aussie citizen no matter how much they want your skill set
Hope that helps
Cheers ... David
I just phoned a couple of local accountants ... picked one of them ... really easy process all done in a few days ... think it cost me about $1200 to set up
If you are employing your partner for example (as UK it's tax efficient) you'll need Workcover ... in QLD you do anyway ... but it's only about $150 however public liability / professional indemnity was really costly I shopped around and eventually got a quote for c$1500 ... but the bigger agencies demand it (eg Hays)
Agencies are the same as the UK don't care until a role comes in then chase you like mad ... then you hear nothing ... lots of Govt / Local Council depts require you to complete a selection criteria ... or at least they do in my field (IT Outsourcing / Business Change / Service Management) ... and there are some Govt depts (eg ATO) how wont employ you unless you are an Aussie citizen no matter how much they want your skill set
Hope that helps
Cheers ... David
#4
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Thread Starter
Joined: Aug 2007
Posts: 205
Re: Setting up Ltd Company
Thanks for the advice guys. The reason I ask is that people have told me that tax rules in oz state that if all your company income comes from the same place they tax you as PAYE. Just wanted to see if that was the case.
#5
Re: Setting up Ltd Company
The rules that determine whether you and your company fall into this category are quite complicated - for more info check out Personal Services Income on the ATO website.
http://www.ato.gov.au/businesses/con...tent/33827.htm
They're also pretty strict about income-splitting - so no more pretending that your wife does your books for 35 hours a week at $40 an hour, either.
#6
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Joined: Aug 2007
Posts: 205
Re: Setting up Ltd Company
Thanks for that response. You'd need a good accountant to avoid those rules as an IT contractor it would seem.