Self employment & taxes- Help!
I don't know if anyone out there can help me with this one, might be one for anyone who is self employed or runs a business. Ians boss has approached him and said would he like to continue doing some work for him on a contracting type of basis, he's in IT so only needs an internet connection to send work over. This would be great for us as it would mean he could work in the evenings giving us the days to sort stuff out and it would take some of the financial pressure off in the short term while he looks for work locally. We just need some advice on the tax implications of this, does anyone have details of someone who could offer us some advice on this matter.
Thanks in advance
Sorry i'm a little confused. Is his employer in Adelaide or uk? and will you be in uk still?
Mark just invoices each week, puts away a % for tax, keeps all reciepts, involved for work, stationary, internet, phone, are all tax deductable aswell as a small amount towards your household bills (£10.00 a month or something)
Other than that sorry i can't really help a lot.
If your working in Aus, or for an Aus employer. (or not) Alan Collett of Go Matilda is really helpful (he's also an accountant) and in the Know.
He normally lurks on PIOz Just put up Question for Alan Collett.
Last edited by Leanne & Mark; 29-06-2007 at 10:53 AM.
Thanks for that. We will be in Adelaide and Ians firm is here in the UK, we were just a bit unsure of what living in Australia, but still doing work for a UK business would mean tax wise, if anything.
i am not 100% on this but i have looked at income outside Australia for Australian residents as my wife has assets in China, as i understand things, and it is complex, Australia taxes you on your world wide income, there are allowances if you have to pay tax in the country you earned the money but you will still have to pay tax in Australia, I normally like to handle these things myself but after many many hours research I had to admit defeat and will be taking profesional advice when I get to Australia.
hope this is of some use
Hi Jen and Ian, don't know either but up here in sunny -6% scotland almost everyone and their dog work offshore, most of my mates are of Lybian nationals or Nigerian or anything they can swing...also if they work in foriegn waters for i think 6 months of the year then they are exempt from tax here., some pay foreign taxes to stay legal so i can't see the differance. I also know mates who own a shed in france just for the address.,if he works as a subcontracter then i'm sure he'd be eligable for aussie tax instead of british? worth looking into, mind you 3 months down the line and you might fancy doing something completely different.,it is the land of oppertunity.!;)
Thanks guys, I think he'll be OK if he sets up as a company in Aus. Its all fun & games isn't it?!
I guess that if you are earning income from outside Australia you will need to pay tax at source if it falls into a taxable band.
If you are self employed though you may have the income added to your income here and taxed locally.
It will depend on the amount of income,if it goes into tax bands then you will need a UK accountant to handle your affairs in the UK.
We have some investment property in the UK and have to have a UK accountant handle our affairs.
Fortunately the income just falls short of any tax band so I just basically add it to our income here in Oz with no special taxes for unearned income or anything.
I'd strongly advise talking to a UK accountant and an Aussie accountant to ensure you do the right thing.
I can recommend a local one here in Adelaide - he is an ex pat so he know the ropes.
He is a nice bloke.
Hope that made sense:)
Intresting thread. I would be in an almost identical position as I have my own web business and get earnings in from uk, usa etc and would be planning to keep things as they are and would have an income and can work from any base.
Can I be nosey and ask what visa your going over on as well as if you found anything out about tax for self employed?
Im undecided right now which route to go as I'm under the business visa earning threshold, have 10 years experience in IT, but am self taught so would have to get skills assest, but would not need to get a job as I will carry my own business and income on - but just expand in Auss.
Any advice greatfully recieved.