Working for Australian company whilst living in UK

[cronemeister]

Hi

 

I have been living and working in Australia on a 457 Visa for the past 2½ years. My wife and children have had to return to the UK for medical reasons and I will be following them in a few months. The company I work for are looking into the possibility of me continuing my employment with them and doing my work remotely from back in the UK.

 

I wanted to ask if anyone knows whether or not this can be done and what considerations need to be looked at mainly from a tax aspect but also things such as the additional contributions that make up my salary like my super, whether I get paid in $$$'s into my Oz bank account or to my UK bank account. Would I be classed as employed in the UK or would I have to register as self employed etc ?

 

If anyone has any links to any information I can find out that would be great or know of anyone else that has done or is doing this and how it's all done.

 

I've got just over 3 months left until my 457 expires but we've both (my employer and I) agreed that if we can sort something out that we'll review it in 6 months and if it's not working we'll have to go our separate ways unfortunately...at least it gives me 6 months back in the UK to get something lined up etc whist still earning a crust :-)

 

Thanks in advance guys.

[cch]

I'm trying to work this out the other way around! I'm emigrating to Australia, but will continue being employed and paid by my UK employer. I trawled through the double taxation convention between the UK and Australia and there is a provision for "Income from employment".

 

The language used in the convention confuses my simple mind, but it appears that in some cases it's possible to avoid being taxed twice. Essentially you declare earnings in both countries, and any tax you've already paid is credited and offset against the tax you would have to pay in the country you reside in. You pay the difference if there is one.

 

I explained that badly. Anyway, I'm going to seek some proper financial advice, and will let you know how I get on.

[Bungo]

Hi

 

I have been living and working in Australia on a 457 Visa for the past 2½ years. My wife and children have had to return to the UK for medical reasons and I will be following them in a few months. The company I work for are looking into the possibility of me continuing my employment with them and doing my work remotely from back in the UK.

 

I wanted to ask if anyone knows whether or not this can be done and what considerations need to be looked at mainly from a tax aspect but also things such as the additional contributions that make up my salary like my super, whether I get paid in $$$'s into my Oz bank account or to my UK bank account. Would I be classed as employed in the UK or would I have to register as self employed etc ?

 

If anyone has any links to any information I can find out that would be great or know of anyone else that has done or is doing this and how it's all done.

 

I've got just over 3 months left until my 457 expires but we've both (my employer and I) agreed that if we can sort something out that we'll review it in 6 months and if it's not working we'll have to go our separate ways unfortunately...at least it gives me 6 months back in the UK to get something lined up etc whist still earning a crust :-)

 

Thanks in advance guys.

 

Your company would need to administer UK payroll, I expect they would not want to though. So realistically you would need to contract and invoice them, or perhaps look to set up under one of the umbrella companies, they will administer payroll and pay what is due in tax and NII and they would just bill your employer for the total.

 

We have just moved back and my OH continued to work for the Australian employer, however there is a UK branch, so he has gone on their payroll and they do an intercompany settlement. So that might be another option if your company has a UK operation.

[Bungo]

I'm trying to work this out the other way around! I'm emigrating to Australia, but will continue being employed and paid by my UK employer. I trawled through the double taxation convention between the UK and Australia and there is a provision for "Income from employment".

 

The language used in the convention confuses my simple mind, but it appears that in some cases it's possible to avoid being taxed twice. Essentially you declare earnings in both countries, and any tax you've already paid is credited and offset against the tax you would have to pay in the country you reside in. You pay the difference if there is one.

 

I explained that badly. Anyway, I'm going to seek some proper financial advice, and will let you know how I get on.

 

Yes there is a double taxation agreement, but that is pretty straightforward, there is no question of anyone being taxed twice. The tricky bit is not double taxation but rather the administration of payroll in another company, not too many can handle that.. But both UK and Australia will require PAYG /PAYE to be administered for employees residing in that country. So your UK employer has to administer Australian payroll (or outsource it) or you cease to be an employee but become a contractor. Vice versa for the OP.