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nighttax
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Christian Murray, post: 198129 wrote:
Hello,

I am currently based in the UK contracting with a UK client. I use the single director Ltd company set up and it works very well.

The reason I am posting here is I that am moving back to Brisbane in October. My UK client has agreed with me to continue contracting remotely from Australia, for at least the short term.

I am after some advice on the best set up to do this. I have been unable to get any response from the handful of local accountants I have contacted in Australia so far.

I have read the following post and my situation is very similar however there are some slightly different circumstances.

Basically, my client’s policy is that I would need to have an address in the UK or have my company registered in the UK to sign a contract. It is possible to register an Aust Pty Ltd company in the UK and I could use a registered office to do that. I could also register for VAT and submit those returns in the UK. However, a single director Pty Ltd doesn’t seem to be a popular set up in Australia. It seems best if you keep the current arrangement and entity until you know how long it will continue. In Australia a single director company (using your words) is one of the most common entities used. With your UK company (you will need to check UK law) you should be able to pay yourseld a non-franked dividend which should require tax to be withheld in the UK and paid by the UK company to the UK tax office. In your Australian tax return you will then show the dividend as foreign income and claim the foreign tax paid as a tax offset. Keep it simple and you will save money and still retain the protection of working through a company in the UK which I am sure gives a similar protection to that of an Australian company.

I have looked at the option of using a UK umbrella company, with an Australian subsidiary, however the cost of fees and payroll tax runs close to 12%.

Does anyone have any advice on this situation, or recommendations of accountants experienced and knowledgeable to advise?

Any information would be much appreciated.

Thanks,
Christian

regards
Evan Jenkin