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Rinkie66

Returning to the uk while still working for Australian company

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I have lurked around on this forum for literally years and years, about 5, whilst we have made the decision to return to the uk. We have been in Sydney for 8 years, moving here from London in 2006. We now have 2 small children (3 and 22 months) and have finally got it together to return, we fly Oct 28th. Whilst we have talked about little else for the past 5 years now it's actually happening I am feeling a little "cold feet", but really for us, it's time to go home. Mainly it's people saying "why on earth are you moving back" that cast doubts over the move, this is usually from people who have either never been to Australia but "saw it on the telly and it looked nice" or came on holiday here once. :) Or family.

 

Anyhow, my question is, has anyone remained working for their Australian employer whilst in the Uk, and what were the implications for tax? (Resident/none resident). I will be either permanently working or freelancing in the uk, but my husband will be still working for his australian employer for at least a year. We currently have a rental property there (which we may well move into if we can transition to a residential over a buy to let mortgage, and we are sure we are staying) but I just wondered in general terms the tax implications of still being resident here for income tax whilst living there, and if this has implications for other things such as healthcare, pensions etc.

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It certainly can be done if your employers are willing, I looked into it as my immediate boss wanted me to complete the project i was on from the UK but in the end the HR dept. wouldn't allow it.

 

As a result of an agreement between UK and Australia (& many other countries) you will only be taxed on the income in the country you are resident, however, as I understand it if you are on the payroll in Australia or paid via a Labour Hire agreement with PAYE then the tax will be deducted in Australia and you will have to claim it back via a tax return as normal (just done mine, there is a tick box for 'Non-resident for tax purposes' on the on-line system which then excludes things like the medicare levy as a result. Then on your UK tax return you would declare overseas income and the tax would be assessed accordingly.

 

I would absolutely be appointing an accountant though - Alan Collett who frequents this forum specialises in UK/Australia tax planning.

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