Working in UK for Downunder client - Tax?

[yeahyeah]

I'm an Australian with a UK visa, currently working from my home in London for a client in Australia (web design services). I have a UK Limited Company which I haven't really used since getting this overseas client.

I'm being paid $AUD into my bank account in Australia. Does anyone here have any experience with this sort of situation? Specifically,

(a) Do I pay tax here in the UK or in Australia? I assume here.

(b) How well co-ordinated are the AU and UK tax departments? I.E. how would the UK tax office have any idea I am earning income in AU?

Any advice much appreciated.

[tim123]

I'm being paid $AUD into my bank account in Australia. Does anyone here have any experience with this sort of situation? Specifically,

(a) Do I pay tax here in the UK or in Australia? I assume here..

You pay it in the UK.

(b) How well co-ordinated are the AU and UK tax departments? I.E. how would the UK tax office have any idea I am earning income in AU?

Any advice much appreciated.

The UK now operates an honesty Tax system. You (and the company employing you) are supposed to voluntarily report your earnings to the IR.

If you don't, the potential penalty for you is jail time, though it doesn't normally go that far.

The choice is your's.

What is the status of the employer? Is it really your employer or is the work done on a Self Employed basis?

tim

[BlasterBates]

Tax offices in different countries don't talk to each other. Well the Aussie tax office is probably going to query you, because they'll pick up on the invoice, so that's the danger. They may demand proof of you working in the UK, such as a tax return for example, a UK address doesn't interest them, its where you do the work. Then again your Aussie client might testify for you.

[Mustang]

Related info??!

I lived overseas for 9 years and then came back to the UK. The company I started work with in the UK was so keen to hire me they said I could stay overseas for 2 or 3 months to wrap up things there and then come back to the UK. They paid me in the UK and Gordo took UK tax.

The key thing is that a) I didnt pay tax in the country I was still living in and b) when I did my UK tax return for that year I was non domicile for a period and claimed a hefty amount back.

Bottom line: could you pay tax in Oz, not pay here and then claim tax back in Oz because you are out the country?

Hope that helps - just a thought!!

[DimPrawn]

Just keep quiet. Don't pay tax here. They'll only waste it on total tulip.