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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7691
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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If myself a my wife (based in England) are working full time

Customer Question

If myself a my wife (based in England) are working full time for an Australian company, would it be best to have a LTD company here and invoice the Australian company rather than be self employed. Combined total annual earnings of around 100K.
Submitted: 19 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 19 days ago.

Hello and welcome to JustAnswer. I amCustomerand here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 19 days ago.

Thank you for your question.

If you are working for one company only, would Australian tax authorities regard you as an employee of that company or self employed. You need to establish your employment status.

Operating as a LTD company would have advantages e.g. lower tax on company profits and the flexibility of drawing total needs in the form of salary and dividends to mitigate tax.

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 19 days ago.
If we were employees, or shareholders then would we have to pay tax in both countries?
Expert:  taxadvisor.uk replied 19 days ago.

Thank you for your reply.

If you are resident in the UK for tax purposes then you would pay tax to UK authorities on your worldwide income. Any tax suffered on earnings abroad would be available for foreign tax credit relief against UK tax.

As your personal earnings would come from UK based LTD company (if you choose to operate as LTD company) then there should be no tax payable in Australia.

I hope this is helpful and answers yoru question.

Expert:  taxadvisor.uk replied 18 days ago.

Hi there

Just checking to see if you need me to clarify anything or if you have any additional questions - I am happy to help!

Many thanks