MuscleSprout Posted July 9, 2022 Share Posted July 9, 2022 Hi folks - I'm a self employed book keeper in the UK and am soon to travel to Australia as a perm citizen. As I work remotely and my work isn't time sensitive I can carry on doing this in Australia. Has anyone else done this and has any knowledge about the tax implications? I'm thinking I should set up a UK limited company and pay myself dividends as a director based in Australia. If anyone can point me in the direction of a professional with some knowledge on this I'd be grateful. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 9, 2022 Share Posted July 9, 2022 As you're self-employed, it shouldn't be a problem. As a web designer, I've done work for people in the US, UK, Italy and Australia without any trouble. Over time, you'll want to start attracting Australian clients so it will be much more efficient if you set up an Australian business which can service your UK clients and also add in Australian clients as you find them. I'm set up as a sole trader in Australia. It's very simple, all you need is a ABN. You may end up needing to submit a tax return in both countries but it's not a huge deal. @Alan Collett will be able to advise. 2 Quote Link to comment Share on other sites More sharing options...
Fisher1 Posted July 9, 2022 Share Posted July 9, 2022 Can hugely recommend Alan Collet - he saved us a small fortune in tax when we moved here five years ago. 3 Quote Link to comment Share on other sites More sharing options...
Ken Posted July 11, 2022 Share Posted July 11, 2022 On 09/07/2022 at 22:24, MuscleSprout said: Hi folks - I'm a self employed book keeper in the UK and am soon to travel to Australia as a perm citizen. As I work remotely and my work isn't time sensitive I can carry on doing this in Australia. Has anyone else done this and has any knowledge about the tax implications? I'm thinking I should set up a UK limited company and pay myself dividends as a director based in Australia. If anyone can point me in the direction of a professional with some knowledge on this I'd be grateful. A UK limited company is probably not the best way to do it as you'll have all the usual tax issues for the company (possibly complicated by having a non-resident director) and they'll have to register in Australia to comply with Australian payroll requirements. Most UK companies would pay someone in Australia as a contractor to avoid needing to operate an Australian payroll. Of course if your UK turnover is over the VAT threshold you'll have UK tax implications anyway. A sole trader in Australia is the simplest option (or an Australian company if you want to keep the liability at arms length) and if under the VAT threshold wouldn't need anything to be done in the UK. Note that to get Australian bookkeeping clients you will need to register with the Tax Practitioners Board as a BAS agent. It's illegal to give paid advice related to Australian tax (even on how to enter a GST transaction in an accounting ledger) if unregistered. Check their requirements for registration there's quite a lot of hoops to jump through. 2 Quote Link to comment Share on other sites More sharing options...
MuscleSprout Posted July 11, 2022 Author Share Posted July 11, 2022 Thanks all. So it sounds as tho my best bet is to stay a UK sole trader until I get my perm visa (I'll initially be coming over on a tourist visa) and then set up as an Australian sole trader after that and pay tax according to wherever I'm registered. Simple! I own a house in the UK that I'll get rental income from so I guess I'll still need to do a tax return over there anyway. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 11, 2022 Share Posted July 11, 2022 14 minutes ago, MuscleSprout said: Thanks all. So it sounds as tho my best bet is to stay a UK sole trader until I get my perm visa (I'll initially be coming over on a tourist visa) and then set up as an Australian sole trader after that and pay tax according to wherever I'm registered. Simple! I own a house in the UK that I'll get rental income from so I guess I'll still need to do a tax return over there anyway. If you're coming on a tourist visa then it's illegal to work. Quote Link to comment Share on other sites More sharing options...
MuscleSprout Posted July 11, 2022 Author Share Posted July 11, 2022 53 minutes ago, Marisawright said: If you're coming on a tourist visa then it's illegal to work. Yes, of course - I understand that. I meant that I couldn't set up as an aus sole trader until I get my perm visa. As an aside, I wonder where the line is drawn now that remote working is so much more common? If I was on holiday and my UK employer expected me to answer emails or attend the odd meeting etc whilst I'm away then surely that's acceptable? Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted July 11, 2022 Share Posted July 11, 2022 1 hour ago, MuscleSprout said: Yes, of course - I understand that. I meant that I couldn't set up as an aus sole trader until I get my perm visa. As an aside, I wonder where the line is drawn now that remote working is so much more common? If I was on holiday and my UK employer expected me to answer emails or attend the odd meeting etc whilst I'm away then surely that's acceptable? The line is drawn at intent. If you have moved over here and intend to reside you can't use the "I'm on holiday and my boss asked a question" excuse. In reality the line is on proportionality. If you really are just taking a 5 minute call or reviewing one email because it's urgent in a week of otherwise ordinary tourist activities then that wouldn't be seen as work by anyone. Actually giving another company tax advise as you would if you had been in the UK is most definitely working and you can't do that until you have a visa with work permissions attached to it. 1 Quote Link to comment Share on other sites More sharing options...
Toots Posted July 11, 2022 Share Posted July 11, 2022 On 09/07/2022 at 22:24, MuscleSprout said: Hi folks - I'm a self employed book keeper in the UK and am soon to travel to Australia as a perm citizen. As I work remotely and my work isn't time sensitive I can carry on doing this in Australia. Has anyone else done this and has any knowledge about the tax implications? I'm thinking I should set up a UK limited company and pay myself dividends as a director based in Australia. If anyone can point me in the direction of a professional with some knowledge on this I'd be grateful. I'm confused. You state you are coming to Australia as a permanent resident so presumably you have gone through the whole migration palaver. Why are you coming on a tourist visa? Quote Link to comment Share on other sites More sharing options...
MuscleSprout Posted July 11, 2022 Author Share Posted July 11, 2022 1 hour ago, Toots said: I'm confused. You state you are coming to Australia as a permanent resident so presumably you have gone through the whole migration palaver. Why are you coming on a tourist visa? Apologies, I wasn't very clear as it probably wasn't relevant to my original question. My husband and I have applied for a 186 DE visa as he has a job offer in Hobart. By the time we fly out to Australia it will be 12 months since the application was submitted and so, based on the current processing times, we hope that all the planets/stars etc have aligned for us and we come out as PR's. At the moment we are just hanging around in the UK waiting for the approval and so our logic is that we may as well do that in Australia and have a holiday before his job starts. If the worst happens and the PR isn't approved then it means we've just had a really good holiday and we have to come back to the UK. If I'm on a tourist visa I'll obviously tell my UK clients I'm taking a sabbatical and can't work temporarily. Hope that makes a bit more sense! Quote Link to comment Share on other sites More sharing options...
Toots Posted July 11, 2022 Share Posted July 11, 2022 20 minutes ago, MuscleSprout said: Apologies, I wasn't very clear as it probably wasn't relevant to my original question. My husband and I have applied for a 186 DE visa as he has a job offer in Hobart. By the time we fly out to Australia it will be 12 months since the application was submitted and so, based on the current processing times, we hope that all the planets/stars etc have aligned for us and we come out as PR's. At the moment we are just hanging around in the UK waiting for the approval and so our logic is that we may as well do that in Australia and have a holiday before his job starts. If the worst happens and the PR isn't approved then it means we've just had a really good holiday and we have to come back to the UK. If I'm on a tourist visa I'll obviously tell my UK clients I'm taking a sabbatical and can't work temporarily. Hope that makes a bit more sense! Oh, I see now. Good luck with the whole visa thing. 1 Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted July 12, 2022 Share Posted July 12, 2022 Feel able to ping a Private Message to me with your contact details if you'd like a quick freebie chat - I'm in the UK at the moment (on a plane back to Australia on Weds 27/07). Best regards. Quote Link to comment Share on other sites More sharing options...
MuscleSprout Posted July 12, 2022 Author Share Posted July 12, 2022 2 hours ago, Alan Collett said: Feel able to ping a Private Message to me with your contact details if you'd like a quick freebie chat - I'm in the UK at the moment (on a plane back to Australia on Weds 27/07). Best regards. Thanks so much Alan, I'll do that 1 Quote Link to comment Share on other sites More sharing options...
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