Moving overseas while still working for UK company

[cheezdog]

I'm moving back to Australia at the end of August. When I moved over, I found it very hard to find contracts in my specialized skillset, and ended up taking a permanent position.

12 months later, the company is finding it hard to find anyone to fill my position, so they've asked me to continue to work for them, asking if I can work partly from Australia and partly from the UK (flying me back and forth). I'm not keen on this, and will be starting at a development job beginning of November anyway, but I am keen to keep working for them until then, so want to offer them 2 months (September-October) which I could work for them fulltime from Australia.

I'm not sure what would be the best option for me to do? Can I legally still work for them from Australia? Should I negotiate a 2 month contract rather than working permanently?

Also, can I be paid into my UK account and taxed in the UK even though I'm sitting at a desk offshore while I work?

[TykeMerc]

I'm not sure what would be the best option for me to do? Can I legally still work for them from Australia? Should I negotiate a 2 month contract rather than working permanently?

Also, can I be paid into my UK account and taxed in the UK even though I'm sitting at a desk offshore while I work?

Yes, it's not uncommon in international firms when someone is posted abroad for months at a time.

Yes, same answer, if that's what you want and it would be easier for the employer I would assume.

[expat]

I'm not sure what would be the best option for me to do? Can I legally still work for them from Australia? Should I negotiate a 2 month contract rather than working permanently?

Also, can I be paid into my UK account and taxed in the UK even though I'm sitting at a desk offshore while I work?

Of course, in the free world the question is not "may I" but "what happens if I".

As for tax, I believe that no reasonable request to pay UK tax is refused. You didn't ask whether the Australian Revenue would want some too, and I'd guess the answer is maybe, they'd certainly like to know about your arrangements.

[Brussels Slumdog]

The UK and Australia have a tax treaty

Of course, in the free world the question is not "may I" but "what happens if I".

As for tax, I believe that no reasonable request to pay UK tax is refused. You didn't ask whether the Australian Revenue would want some too, and I'd guess the answer is maybe, they'd certainly like to know about your arrangements.

I assume that you are an Australian Tax resident
The UK and Australia have a tax treaty
Both Australia and UK use the Credit Method for Elimination of double taxation

The answer that I don't know is whether Australia tax is lower or higher than
the UK tax
If the UK tax on the amount of work that you perform is greater the amount that you would have paid in Australia then you lose the difference.
Quote.
United Kingdom tax paid under the laws of the United Kingdom and in
accordance with this Convention, whether directly or by deduction, in
respect of income or gains derived by a person who is a resident of Australia
from sources in the United Kingdom shall be allowed as a credit against
Australian tax payable in respect of that income
http://www.hmrc.gov.uk/pdfs/uk-australia-dtc.pdf

[cheezdog]

So, I offered to work from Australia for 2 months and then contract for any other time they needed after that. My boss thought it sounded good, but then came back to me that afternoon.

He offered for me to trial for 3 months (as a probation), and if it works out, to continue for another year working from Australia, and they fly me over every 6 months (for a few weeks). This way I get to keep the missus happy (who's in Australia), and they still get to keep me.

Now, I just have to work out whether they will allow me to contract for them. Would it be a good idea, or stick with fulltime? If so, could I invoice them from Australia, or would I be better off still going through a limited company in the UK?

[TykeMerc]

I've no idea what the tax regime is like in Aus with respect to freelance contractors, but I do understand that the rates in Aus are worse than they are here. I assume that you will be paid the same permie salary there as you are here which is effectively something of a pay rise.

In the current economic climate I'd say stay permie and review the situation when the economies have improved significantly. From the sound of it your boss is pretty damn reasonable with the arrangements you've agreed.

[cheezdog]

So, I decided to contract through an umbrella company within Australia, (ITG) and the company agreed , provided if I'd work from home in Australia 10 months/year, I then work from London 2 months/year (flights and accomodation paid for).

However when HR tried to work out the equivalent rate for contracting, they've worked it out that I'd be paid the same amount/month as I was getting fulltime, except not getting paid for days I don't work. I received 25 days leave, Bank Holiday pay and special absence pay as a fulltime employee (not to mention all the other perks of working fulltime).

Should I tell them to raise it to something more suitable? What is a reasonable rule for working out the rate, when moving from a permanent salary to contractor rate with the same company, which they would accept. I've read the salary/1000, but that seems a lot more, and I'm not sure whether they'd accept it.

[BlasterBates]

I'm moving back to Australia at the end of August. When I moved over, I found it very hard to find contracts in my specialized skillset, and ended up taking a permanent position.

12 months later, the company is finding it hard to find anyone to fill my position, so they've asked me to continue to work for them, asking if I can work partly from Australia and partly from the UK (flying me back and forth). I'm not keen on this, and will be starting at a development job beginning of November anyway, but I am keen to keep working for them until then, so want to offer them 2 months (September-October) which I could work for them fulltime from Australia.

I'm not sure what would be the best option for me to do? Can I legally still work for them from Australia? Should I negotiate a 2 month contract rather than working permanently?

Also, can I be paid into my UK account and taxed in the UK even though I'm sitting at a desk offshore while I work?

Strictly speaking you have to be taxed where you work. Companies near borders for example don't allow employees wo work from home if their home is over the border for this very reason. If the timescale is short however and you are in the UK at least some of the time, you could probably tax your income in the UK and then declare this in Aus, as UK taxed income.