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  • #968653
    TehCamel
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    here’s one for fun and games.
    I’ve registered my business name, and I have my ABN.
    I’m currently in London, and I have an opportunity to do about 4 hours work, for 80 pounds.

    this would be the first income for the business, and I don’t have my business bank account yet.

    Assuming the company here is willing to pay an australian business (not a limited company, simply sole trader) would what the laws and taxes and such be.

    whether or not they are legally able to from a UK point of view is a whole other issue… but any advice appreciated

    #1034429
    Past-Member
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    Hi – there are actually two scenarios here. Being registered as an Australian business and doing projects for anyone in the world from here is fine. But actually living in the UK and being regularly employed in the UK would be a different thing.

    Please note – this is NOT legal advice, just my own thoughts.

    My guess is that in the UK you would require a work visa and be taxed in the UK. But once you brought money back to Australia you would be liable for some tax. The ATO has some info on this. There is a link to offshore income. But I am not an accountant and you should investigate this with the appropriate authorities in the UK and in Australia.

    Theoretically, if you are based in Australia then you are liable for tax here. But you might also be liable in the UK if you are living in the UK and doing something regular each week. As long as you have the appropriate work Visa etc.

    Secondly, for working as a registered business with overseas customers, I highly suggest you set up a PayPal business account. (You will also need an Australian bank business account that has your ABN on it as well. They work together.) That way all the payments can go through it and PayPal does the conversions for you. You can see your fees clearly for your tax return. The ATO requires international payments to be converted to Australian values at a consistent time, say monthly. You don’t need to actually convert the dollars from say UK or US to AUD, but you need to take a record of the actual value at the relevant exchange rate of the time you received the payment. I find this easy to do in PayPal.

    As a business with an ABN you must also have liability insurance and more. So if you were living overseas that would have special requirements if you were working for yourself if you were contracting your services out to the UK company. And you would still need advice on work visas and more.

    It’s better to get all the facts and do it right from the beginning, or you will find it too complicated and possibly have extra fees in the future.

    #1034430
    Rob T
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    Regarding currency conversion rate, the ATO also provides the historical rates for major currencies here: Foreign exchange rates.

    #1034431
    TehCamel
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    I do have a work visa (right of abobe actually..) and this particular instance i’m talking about is not regular work, it’s just a once-off 4 hour stint. I don’t have any other paid employment here..

    However, it’s more hassle than it’s worth I think.. unless i do something perhaps dodgy, by sending them an invoice, charging in GBP, and get them to pay into a uk bank account.. but it’s still not linked to the business..

    thank you for your advice :)

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