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UK boss (IT) whilst in Oz

UK boss (IT) whilst in Oz

Old Sep 9th 2002, 1:35 pm
  #1  
ian
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Question UK boss (IT) whilst in Oz

Hi All

I have a possibility of 'bits' of work that I could do when we have moved to Australia, but dont know what would be the best option.

As the IT market is so bad, it would be good to get some work to put me on whilst holding out on the IT job drought.

Is it easy for the company in question to employ me or am I better off setting up a 'small' company and invoining the UK company.


The employment is not likely to be contiguous and will be project based.


Any advice or starting places (web sites etc)?

Many thanks
ian
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Old Sep 10th 2002, 12:19 am
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Default Re: UK boss (IT) whilst in Oz

Hi Ian,

Will you be working for a UK based company while living here ? Or working for an Oz company ?
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Old Sep 10th 2002, 7:26 am
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Default Re: UK boss (IT) whilst in Oz

Hi Onlyme
Sorry, doesn't look like I put that very well!

I would ideally 'like' to be employed by an Australian company (or branch), but have the possibility of some work from a UK company to put me on when we move to Australia...Living (and working) in Aus..paid from the UK.

I don't know whether it is better for them to pay me directly, or set up a small business and invoice them, as the work will be project based. I have no idea how to go about either way!

thanks
ian


Originally posted by onlyme:
Hi Ian,

Will you be working for a UK based company while living here ? Or working for an Oz company ?
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Old Sep 12th 2002, 4:04 am
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Default Re: UK boss (IT) whilst in Oz

I'd ask them to pay me directly if I were you, into my UK account. A friend of mine does the same thing in Melbourne. She gets paid in sterling and lives in Melbourne. Nice. She pays tax in the UK as normal.
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Old Sep 12th 2002, 4:37 am
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Default Re: UK boss (IT) whilst in Oz

Originally posted by onlyme:
I'd ask them to pay me directly if I were you, into my UK account. A friend of mine does the same thing in Melbourne. She gets paid in sterling and lives in Melbourne. Nice. She pays tax in the UK as normal.
Er, I think that's illegal according to Aus law...
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Old Sep 12th 2002, 7:49 am
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Default Re: UK boss (IT) whilst in Oz

think or know ?
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Old Sep 12th 2002, 1:16 pm
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Default Re: UK boss (IT) whilst in Oz

It's generally tax evasion for an Australian resident not to declare income
earned overseas.

Jeremy

    >On Thu, 12 Sep 2002 07:49:28 +0000, onlyme <[email protected]> wrote:
    >think or know ?
    >--
    >Posted via http://britishexpats.com
 
Old Sep 12th 2002, 1:27 pm
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Default Re: UK boss (IT) whilst in Oz

I thought that would be the case.

The problem I have is how to go about it. Does the UK company pay me directly, and then I submit that with my tax return? Or is there more to it? Will the UK company have to pay UK tax as well as the Aus tax?

Am I better off trying to get a paper round?

thanks
ian



[QUOTE]Originally posted by Jaj:
It's generally tax evasion for an Australian resident not to declare income
earned overseas.

Jeremy
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Old Sep 12th 2002, 6:37 pm
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Default Re: UK boss (IT) whilst in Oz

Originally posted by Jaj:
It's generally tax evasion for an Australian resident not to declare income
earned overseas.

Jeremy
But if the person concerned is resident in Australia, then the work he/she does is presumably done in Aus too - over the internet etc maybe, but physically tapping away at the keyboard in a study or some such in Australia. Any case history on this?

I guess you are right anyway that it's the worker's country of residence that counts for income tax purposes, not the payer's/ employer's base country.

Didn't someone post here not so long ago that he got his residence visa revoked on this issue and was deported from Aus?

Cheers - Don
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Old Sep 12th 2002, 11:26 pm
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Default Re: UK boss (IT) whilst in Oz

will you have PR when you arrive here ?

The person I mentioned who is working in Melbourne is NOT a PR. She's here on a 6 month trial period...tourist visa.
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Old Sep 12th 2002, 11:38 pm
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Default Re: UK boss (IT) whilst in Oz

From the Oz tax office site - www.ato.gov.au

Foreign employment income
Foreign employment income is income from overseas such as salary, wages, commissions, bonuses or allowances.

Exempt foreign employment income
Your income may be exempt from Australian tax because of:

a privileges and immunities agreement or a law covering persons connected with international organisations
exemptions for the pay and allowances of members of the Australian Defence Force.
Your employer should be able to tell you if either of these applies. If so, you do not need to declare this income on your Australian income tax return. If you need further help, ring the Personal Tax Infoline on 13 28 61.

If you worked continuously in a foreign country for 91 days or more, your foreign employment income will generally be exempt from Australian tax if you are not exempt from tax in the foreign country. Your foreign remuneration may also be exempt from Australian tax if you worked for 91 days or more on a project approved by Austrade. For more information about these exemptions ring the Personal Tax Infoline on 13 28 61.




Doesn't mention your particular situation though ....
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Old Sep 13th 2002, 3:06 am
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Default Re: UK boss (IT) whilst in Oz

Ian, I just called the tax office here.

They said you should get them to pay you directly into your a/c here and then declare it on your tax return. That way they can get their slice of your bacon !! and slice they will.

You are supposed to declare all foreign income in Oz, including shares, interest on bank accounts, etc.

You would be exempt from paying tax here if you spent 91 days of the tax year out of the country.
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Old Sep 13th 2002, 7:46 am
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Default Re: UK boss (IT) whilst in Oz

Thanks for all the help everyone.

[disclaimer]
I was always going to declare the tax in Oz! I was looking for a way of paying tax _only_ in Oz...(because I will be living there on a PR visa).
[/disclaimer]


So...final question...
Will the UK company paying me have to deduct UK tax (and NI) before I get it, or can they write the tax off as I'm no longer a resident? Don't fancy double tax

Incidently...anyone got any idea of the costs involved to set up/run a company in Aus (probably a sole trader)..then I can invoice them?

cheers
ian



Originally posted by onlyme:
Ian, I just called the tax office here.

They said you should get them to pay you directly into your a/c here and then declare it on your tax return. That way they can get their slice of your bacon !! and slice they will.

You are supposed to declare all foreign income in Oz, including shares, interest on bank accounts, etc.

You would be exempt from paying tax here if you spent 91 days of the tax year out of the country.
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Old Sep 14th 2002, 6:05 am
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Default Re: UK boss (IT) whilst in Oz

1. If she's on a tourist visa then she ought not to be working.

2. It's quite possible to be Australian tax resident without having PR (just as it
is possible to be the reverse).

Jeremy

    >On Thu, 12 Sep 2002 23:26:15 +0000, onlyme <[email protected]> wrote:
    >will you have PR when you arrive here ?
    >The person I mentioned who is working in Melbourne is NOT a PR. She's here on a 6
    >month trial period...tourist visa.
    >--
    >Posted via http://britishexpats.com
 
Old Sep 14th 2002, 6:30 am
  #15  
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Default Re: UK boss (IT) whilst in Oz

    >On Fri, 13 Sep 2002 07:46:38 +0000, ian <[email protected]> wrote: So...final
    >question... Will the UK company paying me have to deduct UK tax (and NI) before I
    >get it, or can they write the tax off as I'm no longer a resident? Don't fancy
    >double tax

If you can convince the Inland Revenue you're not UK resident then your employer may
be able to pay you without deducting tax. Depends on whether you're an employee or
contractor etc.

If they do deduct UK tax you should be able to offset this against Australian tax so
double taxation is avoided.

I suggest getting some professional advice on this.

    >Incidently...anyone got any idea of the costs involved to set up/run a company in
    >Aus (probably a sole trader)..then I can invoice them?

I would get professional advice here too, so that you don't fall foul of Australia's
tax rules (similar to IR35 in the UK) which can affect people working through limited
companies.


Jeremy
 

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