Working for a UK company from Aus

[GeoSurfer]

So...

 

My manager knows that I'm leaving and is very supportive. He has suggested that, should I not get a job immediately, I could continue working for my current company remotely from Aus until I find something. What are the implications of this? Does the tax apply in England or Aus? Would I need to enter some sort of freelance agreement? The wage would be poor by Aussie standards given the higher cost of living but it'd be better than nothing whilst I am trying to find my feet. Also anticipating the SLC will hammer me for living in Aus regardless of how little I'm on.

[Bungo]

You would pay tax on employment income in Australia. Your employer would need to run Australia payroll and set up super for you, I imagine that would fall into the "too hard" bucket, understandably so unless there is as Australian branch of your company that can take it on. If that not possible then yes you need to look into free lancing / contracting.

[GeoSurfer]

I asked at work today. They said as it would only be a temporary arrangement I would remain on the UK payroll and pay tax in the UK, but I'd have to declare I'd been taxed to the Aus government as well as in my annual Aussie tax return to avoid double taxation which the UK/Aus have legislation to prevent.

 

I'll have to read up on this but I was just hoping someone had done the same/similar.

[Bungo]

I asked at work today. They said as it would only be a temporary arrangement I would remain on the UK payroll and pay tax in the UK, but I'd have to declare I'd been taxed to the Aus government as well as in my annual Aussie tax return to avoid double taxation which the UK/Aus have legislation to prevent.

 

I'll have to read up on this but I was just hoping someone had done the same/similar.

 

If you are living and conducting your work, whilst you are situated in Australia, then you need to pay Australian tax and go through Australian PAGY tax processes. End of. Your employer sounds like they do not have a clue. If you want to move to Australia and break the law that is up to you.

[Gbye grey sky]

I asked at work today. They said as it would only be a temporary arrangement I would remain on the UK payroll and pay tax in the UK, but I'd have to declare I'd been taxed to the Aus government as well as in my annual Aussie tax return to avoid double taxation which the UK/Aus have legislation to prevent.

 

I'll have to read up on this but I was just hoping someone had done the same/similar.

 

Your employer is obliged to make appropriate arrangements with both HMRC and the ATO. The Payroll/HR Department should first call the HMRC Employer Helpline and get specific guidance in writing which, if I were you, I would insist on seeing. Unless this is managed correctly you can end up paying tax in both countries.