Contracting in OZ

**weemster** · 1 June 2010, 09:50

Originally posted by Mehmeh View Post

Hey guys,

Another Oz question...if any of you have some advice.

I'm going to be heading off to Oz soon, just wondering if I can keep my LTD open here, and pay myself divs up to the higher tax rate while im in Oz for 1-2 years. So that I can make the most of my UK tax, whilst earning and getting taxed in Oz.

Thanks

Heading off at the end of the year to

and spoke to my accountant about this. There are two issues here 1) you can keep trading via your ltd company i.e being paid by an aussie company for the tax year you left the uk only. 2) You effectively stop becoming a Uk tax payer and subsequently have no Uk tax limit when you leave the country.

**Fred Bloggs** · 1 June 2010, 10:45

Originally posted by weemster View Post

You effectively stop becoming a Uk tax payer and subsequently have no Uk tax limit when you leave the country.

Not necessarily true any more. Particularly if you have a house, family, bank account, dentist, credit card, etc in the UK still.

**weemster** · 1 June 2010, 11:32

Originally posted by Fred Bloggs View Post

Not necessarily true any more. Particularly if you have a house, family, bank account, dentist, credit card, etc in the UK still.

Sorry...yes !

**Moscow Mule** · 1 June 2010, 13:03

You also need to check the company tax rules in Oz. You might find that if your company has moved it's base there then you will need to pay tax there.

**Fred Bloggs** · 1 June 2010, 14:14

I had thought that at 52 I had left it too late to work in the booming Oz oil and gas industry but it seems that I could go there for upto 4 years on a 457 visa. Sorry for the thread hijack.

**Wanderer** · 1 June 2010, 21:08

Originally posted by weemster View Post

You effectively stop becoming a Uk tax payer and subsequently have no Uk tax limit when you leave the country.

Hmm, cool. How long do you have to be gone before that kicks in?

Surely (insert new country here) would tax you on your world-wide income though?

**Gonzo** · 2 June 2010, 07:27

Originally posted by Moscow Mule View Post

You also need to check the company tax rules in Oz. You might find that if your company has moved it's base there then you will need to pay tax there.

WHS.

You need to understand how the ozzie tax authorities will view your company.

Some countries won't care about your UK Limited others will decide that the company has changed domicile to their jurisdiction with you and demand tax accordingly. Some countries have far less friendly tax regimes than the UK, believe it or not.

I don't know the situation with Australia. You might be fine, but you might not so you will have to find out.

Contracting in OZ