InOzOneDay Posted March 25, 2015 Share Posted March 25, 2015 Hi Planning our move in November. I own several properties in the UK and am also a Director / Shareholder of several UK Companies (Small Businesses) My plan is to continue to work and earn money from these Companies... what would my tax situation be? Do I continue to pay tax in the UK then just bring the money 'post-tax' to auz and spend it... or do I need to somehow not pay tax in the UK and pay it in Auz? At the moment I earn £7100 / year via PAYE and take the rest of my income via Dividends. I also earn property income directly from the houses I own and rent out. Thanks Quote Link to comment Share on other sites More sharing options...
InOzOneDay Posted March 25, 2015 Author Share Posted March 25, 2015 Other thing that occurs to me, what if I setup a Australian company that charged my uk company for 'services' (I can justify this)... then this would make the Uk Company not pay tax... the australian company would then pay me by Auz equivilient of PAYE / Dividends (whatever they are?)? Quote Link to comment Share on other sites More sharing options...
Bungo Posted March 25, 2015 Share Posted March 25, 2015 Hi Planning our move in November. I own several properties in the UK and am also a Director / Shareholder of several UK Companies (Small Businesses) My plan is to continue to work and earn money from these Companies... what would my tax situation be? Do I continue to pay tax in the UK then just bring the money 'post-tax' to auz and spend it... or do I need to somehow not pay tax in the UK and pay it in Auz? At the moment I earn £7100 / year via PAYE and take the rest of my income via Dividends. I also earn property income directly from the houses I own and rent out. Thanks There are various different types of income in there: employment income, investment income (from dividends) and then rental property income. The rules are not the same for each income stream. But I would suggest you ask your accountant about this, presumably you use one anyway in light of your situation. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 25, 2015 Share Posted March 25, 2015 I own several properties in the UK and am also a Director / Shareholder of several UK Companies (Small Businesses) My plan is to continue to work and earn money from these Companies... what would my tax situation be? Do I continue to pay tax in the UK then just bring the money 'post-tax' to auz and spend it... or do I need to somehow not pay tax in the UK and pay it in Auz? At the moment I earn £7100 / year via PAYE and take the rest of my income via Dividends. I also earn property income directly from the houses I own and rent out. Thanks There is a double taxation agreement between the UK and Australia. You will need to submit a tax return in both countries. You will pay tax in the UK on UK income, but you will then have to declare that income AND the tax paid on your Australian tax return. You're going to need a new accountant - one that works with expats and knows both Australian and British tax rules. People have got into all kinds of trouble working with a UK accountant who doesn't understand Australian tax and vice versa - you really need someone who has an understanding of both to make the best decisions. Quote Link to comment Share on other sites More sharing options...
InOzOneDay Posted March 26, 2015 Author Share Posted March 26, 2015 There is a double taxation agreement between the UK and Australia. You will need to submit a tax return in both countries. You will pay tax in the UK on UK income, but you will then have to declare that income AND the tax paid on your Australian tax return. You're going to need a new accountant - one that works with expats and knows both Australian and British tax rules. People have got into all kinds of trouble working with a UK accountant who doesn't understand Australian tax and vice versa - you really need someone who has an understanding of both to make the best decisions. Does anybody have accountant recommendations? Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 26, 2015 Share Posted March 26, 2015 Does anybody have accountant recommendations? This is not a recommendation because I haven't used these people myself, but it is an accounting firm that practices in both countries: Jo Lamberth websters Australian office: ARBN 150 262 178 Registered office and postal address: Level 20, Tower A, The Zenith 821 Pacific Highway Chatswood NSW 2067 Direct Telephone Line: 02 8448 8117 Mobile: 0479 044 255 UK office: 10 Wellington Street Cambridge CB1 1HW Tel: 01223 507080 Fax: 01223 566187 Quote Link to comment Share on other sites More sharing options...
Bungo Posted March 26, 2015 Share Posted March 26, 2015 There is a double taxation agreement between the UK and Australia. You will need to submit a tax return in both countries. You will pay tax in the UK on UK income, but you will then have to declare that income AND the tax paid on your Australian tax return. You're going to need a new accountant - one that works with expats and knows both Australian and British tax rules. People have got into all kinds of trouble working with a UK accountant who doesn't understand Australian tax and vice versa - you really need someone who has an understanding of both to make the best decisions. It is not as straight forward as your pay tax in UK and claim credit in Australia. The double taxation agreement is a lengthy document that goes through each different type of income in turn and specifies the treatment. For example employment income would be taxed whre the person resides and not at all in the other country, but rental income is initially taxed where the property is and then could be further tax in the other country, which may or may not be covered by a tax credit. Different rules again for pension or investment income. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted March 26, 2015 Share Posted March 26, 2015 What is your citizenship/visa status in Australia? Best regards. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted March 26, 2015 Share Posted March 26, 2015 ... and why do you not simply wind up the UK limited companies via a MVL (Members Voluntary Liquidation), make use of CGT Entrepreneur's Relief in the UK, and start a new company in Australia? Using this approach you would probably be best advised to ensure the distributions following the MVLs take place before you become a tax resident of Australia. Depending on your visa status in Australia ... Best regards. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted March 26, 2015 Share Posted March 26, 2015 ... and finally (for now), can I suggest a Google search on UK and Australian tax advice. Best regards. Quote Link to comment Share on other sites More sharing options...
FTA Posted March 29, 2015 Share Posted March 29, 2015 Does anybody have accountant recommendations? Try smats.net Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted March 29, 2015 Share Posted March 29, 2015 My understanding is that SMATS assists with the acquisition of property in Australia and tax compliance and planning associated with the same. They might therefore not be the best placed firm to assist with the OP's questions. Best regards. Quote Link to comment Share on other sites More sharing options...
FTA Posted March 29, 2015 Share Posted March 29, 2015 My understanding is that SMATS assists with the acquisition of property in Australia and tax compliance and planning associated with the same. They might therefore not be the best placed firm to assist with the OP's questions. Best regards. Yes, this is what their website says. But they will still know more than your average Australian accountant, and they have an office in the UK. Quote Link to comment Share on other sites More sharing options...
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