fitzal

Hi,

I've tried searching the forum and can't find the answer, so hopefully someone knows...

I'm going to Australia on the WHV, and my current employer in the UK is going to continue to give me work while I'm away. I think I'll continue to get paid in the same way I am now (PAYE). Is this allowed on the WHV?

Also, I'll be paying tax and NI in the UK, I assume I won't have to pay any taxes in Australia as well?

Hope someone can help. Thanks in advance.

Pollyana

Yes its allowed. Can't advise on the tax thing though.

Bermudashorts

If you are earning employment income whilst you are living in Australia, then you pay Australian tax not UK tax.

fitzal

Thanks. So is that even if it's a UK only company and they're paying into my UK bank account?

I'm not quite sure how the logistics of getting it paid via Australia will work, do you know?

Bermudashorts

The method of payment is irrelevant to the tax situation. So is the location of company, I worked for a Swiss company once and a US company another time, it doesn't mean I pay tax in Switzerland or USA.

You could continue to have it paid in UK and transfer it over, same as you ever were?

fitzal

Ah, ok I see. So currently I get paid by PAYE and it's obviously after tax etc. When I move would my company just pay me my gross salary, then I work out my tax etc with the Australian government?

Bermudashorts

That's the theory, your company might have some technical problems with paying outside PAYE though, they might make it your problem.

fitzal

Yeah, I'll have to see what they say. Thanks for your help.

commonwealth

As s/he'll be on WHV, I think s/he may qualify as a non-resident for Australian tax purposes, hence only Oz-source income will be taxed here. S/he will continue paying tax on her/his UK income.

http://www.ato.gov.au/youth/distribu...&page=1#P7_436

here is a residency tool on ATO website: http://calculators.ato.gov.au/script...dent.XR4&go=ok

Bermudashorts

If he is carrying out work whilst onshore, then I believe it is onshore income. i.e. based upon location of employee not employer.

lapin_windstar

Hold on a second - some of the advice above is too quick off the mark. Remember that the WHV doesn't allow you to be employed by the same employer in excess of six months.

Your employer may also want to think about its obligations to register in Australia etc if it would be considered to be carrying on a business in Australia. http://www.pwc.com.au/legal/publicat...pany-jun09.htm I don't know whether they would also be required to take out e.g. workers' comp insurance.

All of that is separate to the tax thing - which any half decent tax agent should be able to advise you on.