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Tax implications for UK


thinker78

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Does anyone have direct experience of working for an aussie employer once back in the UK?

 

The Aussie employer will need to set up and administer UK payroll. My OH did it when we returned earlier this year, his company had a UK office so they put him on the UK payroll and presumably charged Australia back through an intercompany account.

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  • 4 weeks later...

Not correct. And with respect to the OP's question - yes, I have direct experience. As I type, the missus is running a video conference for her client back in Aus. We've been in the UK for 3 months, and she's been working solidly for her client (5AM starts!) each work day. She is an employee of my company, and her agency pays my company, Aussie dollars into an Aussie bank account.

 

The ATO will try to keep you on its books as long as possible, so you need to be cautious of double taxation issues (which really just means that you'd be subject to the worst case tax interpretation of the two countries). The ATO has no hard and fast rules on this (as always, this is deliberate ambiguity, not accidental) - and it is as much a matter of 'interpretation'. Factors include whether you sold up your house in Australia, or do you retain an abode there? Likewise, have you moved into a 'permanent' abode in the UK? Did you de-enrol from the Aus electoral role? Have you enrolled on the UK one? Have you shut Aussie bank accounts, and opened UK ones? What did you put on your entry card when you came into the UK - did you tick the box that said you'd be returning to Australia.

 

If done properly, you can not only avoid the double tax trap, but actually engineer some pretty flexible taxation arrangements, which are quite beneficial, especially if you are able to utilise either a Pty Ltd or a Trust in Australia, and a Ltd in the UK.

 

All the best with the move.

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