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  • #987378
    Whitelionwest
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    Hi,

    New here, so I hope my post is understandable.

    I am looking at setting up a business as a sole trader. The business is small and ultimately just something on the side, but I’d like to give it a go. This is why I’m taking the sole trader route in the first instance. The business is 100% online based, selling products, within Australia, and hopefully worldwide.

    My implication is that I am leaving the country in a few months to begin a prolonged research career at Oxford in the UK. I was wondering what issues this may cause regarding the money the online business earns (that I will be operating from o/s). My research tells me that since I am an Australia citizen, and will only be holding student visa’s in the UK, that this should really be no different to if I was operating it online from within Australia.

    I am also a little confused regarding what tax implications may arise relating to both product sold to Australian residents, and product sold in the US or EU/UK.

    Sorry if I am vague, total newbie.

    Thanks in advance for any help.

    Cheers.

    #1162418
    Greg Mawer
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    • Total posts: 46
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    Hi Whitelionwest,

    The answer depends upon a number of factors including whether you are a resident of Australia for taxation purposes (the can can be different to whether or not you are actually a resident of Australia).

    There are a number of factors at play to make the determination. The ATO has a questionnaire to assist:

    http://www.ato.gov.au/Calculators-and-tools/Residency-status—leaving-Australia/

    Complete the questionnaire and let me know if it comes up as your being a resident or non-resident.

    Alternatively, you could setup the business in the UK?

    Structuring your business the correct way is an important consideration to get right from day 1.

    Regards,

    #1162419
    Anonymous
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    Hi Whitelionwest,

    Thanks for joining the forum, and congratulations on your upcoming move to Oxford – that sounds like an amazing opportunity for you.

    I highly recommend consulting an accountant who has experience in this to help you work out the best approach – I set up an Australian-based business myself whilst living in the UK, and there’s no way I’d have been able to figure it all out without the input of my accountant.

    There are several here who should be able to assist if you don’t already have one.

    Good luck with everything,
    Jayne

    #1162420
    Whitelionwest
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    • Total posts: 2
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    Greg Mawer, post: 187689 wrote:
    Hi Whitelionwest,

    The answer depends upon a number of factors including whether you are a resident of Australia for taxation purposes (the can can be different to whether or not you are actually a resident of Australia).

    There are a number of factors at play to make the determination. The ATO has a questionnaire to assist:

    http://www.ato.gov.au/Calculators-and-tools/Residency-status—leaving-Australia/

    Complete the questionnaire and let me know if it comes up as your being a resident or non-resident.

    Alternatively, you could set-up the business in the UK?

    Structuring your business the correct way is an important consideration to get right from day 1.

    Regards,

    Thanks for the quick response Greg. I completed the calculator and it advised me that I WILL be a resident for tax purposes (see attached screenshot for more detail).

    All operations of the business (i.e. packing and mailing the product) will always be Australian based. Considering the result of the calculator, would it be correct for me to assume that my online operation from the UK doesn’t really have an impact, and I pay the tax and have a tax-free threshold as I would if I was in Australia?

    Thanks again!

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