Hi, I'd be happy to wait a few days more.
How long approximately do you think it'll take?
Hi Robin, thanks for your answer. Unfortunately, it's still not clear for me, I hope you can help me understand better the situation.
Indeed I'll be back in Australia soon and still are, and will be, Australian resident for tax purposes. However, I'll be also trading in the UK within these 6 months, thus I'll have to register and lodge an assessment here. I'm aware of that.
My question is about how to pay taxes for a work realised in a country and paid in another. I haven't been using a particular accounting method because I just started freelancing but had I been using a cash accounting method before wouldn't it make more sense to register the income and pay taxes when and where I receive that cash, otherwise (using the accrual method) I'll be acknowledging a revenue and liable for taxes for something I haven't been paid (I know I could get back the taxes in the future if I'm not paid but I rather not do that).
Also, remember I can be paid (and would rather be paid) in a UK account and haven't send any invoice yet, so that I would be able to send a UK invoice once I register.
I wonder which are the implications of sending a UK invoice to my client and receiving the payment in a UK bank account when I have done the work in Australia, incurred in expenses there, and of course when I wasn't registered in the UK taxation office yet.
I hope I was clear this time and you could help me further.
Thanks for your answer Robin. So if I understand correctly I could claim the income in the UK and declare that income here even if I was not a UK resident for tax purposes when I was doing the job and incurring in expenses. Am I right.
Even if that's possible, what I had in mind by posting the question was to ease my concerns regarding registering in the UK, sending a UK invoice and claiming the income in the UK. Sorry if I sound repetitive but allow me to list those concerns and ask about them directly.
a. I performed the job in October-November 2013 and will be registering in the UK in February 2014, is there a problem with this?
b. I performed the job while in Australia, is there any problem with this?
c. I incurred expenses in Oct-Nov 2013 (before being registered), any problems?
d. Are there any other implications? Anything else I need to consider?
Hi Robin, thanks for your answer.
I'd like to clarify two more things if you'd allow me:
1. If, as you suggested, I declare all this in Australia without involving UK at all. Would it be a problem if I get paid in a UK bank account. Do the tax authorities in the UK link the individual's assessments with their bank accounts?
2.Are you familiarised with the use of the ABN in Australia. I'm not registered to the ABN so I was wondering what would happen if I send my client an invoice (receipt) without an ABN on it. Would you know the implications of doing that considering I'm dealing with a non-Australian company?
Hi Robin, sorry I'm not familiarised with the concept of 'remittance basis charge'. For being practical, could I be paid in a UK account, spend all that money in the UK and still expect not to pay taxes for that income in the UK?
Re the ABN, would non Australian companies also be able to withhold a percentage of the payment if no ABN is in quote? Would it be a problem registering to the ABN even after the work was done and expenses incurred?