NoddyHolder

Hi there,

Finally received my visa and am planning to make the move over to Oz after Christmas! Having told my current employer of my plans, they would like me to do a bit of work for them via the internet/email. I am happy to help them out but have no idea of the logistics of how I could be paid and tax etc. ie. can they still keep me on as PAYE?

Can anyone please offer any help or advice?

Thanks in anticipation
Noddy

JaneandJim

Don't know about the PAYE side of things but Jim set up his own limited company here and has a contract between this and the UK company. He works from home via the internet. He invoices every month in GBP and the money is paid into an Australian bank account. He pays all his taxes (GST and PAYG) here.

Hope this helps a little bit.

Jane

NoddyHolder

Thanks Jane will look into that. So Jim doesnt pay any UK tax at all?

JaneandJim

Nope, nothing. I take care of it all here.

We were lucky in that a colleague of his works from Perth for the same company so procedure was already in place to deal with this. It still took a while to sort out contracts, though, so I would get the ball rolling as soon as possible if I were you.

Jane

threlly

hi
we have the same set up here in sydney.

partner works for his old manchester co, set up as a sole trader here, works from home, invoices co in uk every 3 months, they pay into cba account in pounds and then we transfer every 3 months. i do all the a/c side and we just pay tax here and claim for all expenses-electric/phone/rent/internet etc-we also claim any gst we have paid for goods.
hope that helps
p.s the exchange is better now this year than last year, so we get more dollars which is even better

Alan Collett

Threlly makes a valid point in that if you want to avoid the risk of not knowing exactly how much you are going to receive in A$'s I'd be seeking agreement for your time to be charged in A$'s per hour rather than GBP's.

That means the currency risk sits with the company for whom you are working rather than with you.

Alternatively, if you know how much you will be invoicing, when you will be rendering invoices, and - importantly - when you will be paid, you might enter into a forward contract with one of the currency companies such as HIFX, OzForex, etc.

Best regards.

NoddyHolder

Thanks for your help guys, if anyone could point me in the right direction of how to set up as a sole trader in Oz that would be a big help.

Cheers
Nod

Alan Collett

- Register for a Tax File Number

- Register for an Australian Business Number (an ABN)

- Register your business name (if not trading in your own name)

Have a look here for more details:
http://www.ato.gov.au/individuals/pa...02_001_008_002
http://www.ato.gov.au/businesses/pat...59#001_003_021
http://www.gomatilda.com/business_is...ness_names.cfm

If you need an accountant to help with some of all of this feel able to let me know.

Hope this helps.

Best regards.

Alan Collett

PS. Don't forget to consider trading a limited company - there may be tax savings, but the compliance costs would be higher than if you were trading as a sole proprietor.

NoddyHolder

Thanks Alan, thats a big help. Presumably an Oz accountant would assist in settimg things up?

Alan Collett

Yes, s/he should be able to .

Best regards.