Freelancing in the UK for Australian clients

[SR744]

Hi, 

Let me know if there's an existing thread on this subject and I'll go find it, but in the meantime...

- I recently moved back the UK after 4 years or so in Australia. 
- I want to continue freelancing for Australian clients and I'm not sure of the best way to do this, money-wise.
- Can I continue invoicing in AUD with my ABN and get paid into my Australian bank account?
- What happens at tax time (in both countries)?
- Any tips for avoiding international transfer fees and so on?

Lots of questions! If you can help with any of them, it would be much appreciated. Thank you!

[FOL]

I do it the other way around, I am in Australia and invoice clients pretty much all over the world.

AFAIK, but seek professional advice from an accountant in the UK, assuming it's entirely B2B - you kill your ABN/aussie business, set up a business in the UK and you can invoice Australian clients in AUD. You have to look into charging GST (I don't think so but not sure). If you keep having an Australian bank account, they can send they money to that account and use transferwise/ofx/moneycorp to move money from your AU bank account to your UK account once every period.

In my case: I have an aussie business, send an invoice in Euro's without VAT. Receive it in Euro's on a Dutch bank account and use OFX to transfer every 6 - 8 weeks to my AU account. I am only taxed in Australia.

[Marisawright]

I was going to say the same thing.    If you're no longer resident in Australia, then you no longer have an Australian business, and you'd just be creating tax headaches for yourself by trying to maintain one.  You are now a UK business that has clients overseas.  Of course you can bill your Australian clients in AUD and ask them to make payment to whatever account you like.  What matters is that you declare that income according to when you receive payment from them, not according to when the money finally hits your UK bank account. 

[SR744]

Okay, that's really helpful, thanks both. I've set up Transferwise borderless account, which allows payments in both GBP and AUD, which I think will be useful. I'm assuming it's best to just work as a sole trader in the UK and do a self assessment come tax time, rather than set myself up as a limited company?

I need to find out for sure re GST.... if anyone knows more on that, let me know