Continue operating my UK ltd company in Australia

[D.Greylish]

Good afternoon all, 

 

Im currently a UK engineering contractor running my own limited company working for a few clients. Myself and my wife and considering the move to Oz and trying to work out the correct way to continue my career once we have made the move. Am i able to continue using my UK limited company when living in Oz and still supplying my services to the same Uk clients or this this not allowed. I could look to get a permanent job in Oz and close the business but it would mean a commute rather than working from home as i do currently. The ideal scenario would be to carry on as i am now however I'm unsure on the implications with tax etc.  Im interested to hear from anyone who has been in a similar situation. Thanks

[rammygirl]

Ideally you need to set up an Australian company or at least get an ABN as a sole trader. You can then still keep your UK clients and try to gain new Aussie ones.  The time difference can be a pain but also a bonus as they can give you a brief close of play their end and you can work on it while they sleep!

The ATO website has a lot of good information and getting an ABN is easy but you should speak to an accountant to ensure you understand your obligations and the rules.

As an Australian resident tax will be paid to the ATO not in UK.  
 

Closing down your UK company is another issue, you need to be careful and consult accountants, if you do it before you leave Uk you might be able to avoid tax, once in Aus those HMRC offsets disappear and you will pay more tax.

You need someone who understands Uk and Aus tax.

 

Edited August 15, 2022 by rammygirl

[Marisawright]

9 hours ago, D.Greylish said:

Im currently a UK engineering contractor running my own limited company working for a few clients. Myself and my wife and considering the move to Oz and trying to work out the correct way to continue my career once we have made the move. Am i able to continue using my UK limited company when living in Oz 

You might be able to (though I believe it's a tax minefield), but why would you? Over time you will lose clients and want to take on Australian clients, and then you'd have all kinds of issues. T

Much better to close down the UK company and set yourself up in Australia.  You'd probably set yourself up as a "sole trader".  You'll need to get a ABN (Australian Business Number) and decide whether to register for GST (the equivalent of VAT).  

I'm a sole trader in Australia and I have clients in Italy and the US.  You can invoice them in their local currency, and they can pay your fees into your UK bank account, even though your business is in Australia, so it's no inconvenience for them.

[paulhand]

22 hours ago, D.Greylish said:

Good afternoon all, 

 

Im currently a UK engineering contractor running my own limited company working for a few clients. Myself and my wife and considering the move to Oz and trying to work out the correct way to continue my career once we have made the move. Am i able to continue using my UK limited company when living in Oz and still supplying my services to the same Uk clients or this this not allowed. I could look to get a permanent job in Oz and close the business but it would mean a commute rather than working from home as i do currently. The ideal scenario would be to carry on as i am now however I'm unsure on the implications with tax etc.  Im interested to hear from anyone who has been in a similar situation. Thanks

Have you confirmed that you are eligible for a visa - this is obviously the first step?

[Alan Collett]

Putting your visa strategy to one side - it is likely to be best to set up a new Australian entity with a UK bank account attaching to that entity (Wise can facilitate this; I have this with my tax practice and several other business clients of ours have done the same).

If you'd like an initial freebie chat please feel able to ping an email to me at my bdhtax.com email address.

Best regards.