Home – New Forums Starting your journey Tax liabilities UK/Australia

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  • #987943
    • Total posts: 1

    Hi all,

    This is my first post, so hopefully I’m putting it in the right forum.

    I’m a British ex-pat who’s been living in Australia for nearly 2 years. I’ve only just been granted the correct visa for me to live and work (5 year visa – subclass 461). I was able to work before on the old visa but was fortunate enough not to have to!

    I have just started working as a self-employed web designer and need to get registered as a sole-trader and pay tax on my new earnings (joy!). However, ALL of my work to date has been for clients based entirely in the UK. This will probably remain so for the foreseeable future (I work solely from word-of-mouth recommendations at this stage). Currently, all payments are made into my UK bank account before I transfer them into Australia.

    Therefore what are my tax liabilities? I’ve asked the same question on a UK forum and so I hope to find out if I have liabilities there, but it seems to me that under my current situation I may be liable to pay tax in both countries! I certainly don’t want that, so would I have to ensure my earnings are paid directly into an Australia bank account if I am to avoid UK tax?

    Any advice or suggestions gratefully received.



    Dave Gillen – Former FS Concierge
    • Total posts: 2,566

    Hi Caleb,

    I’m hoping some good advice comes your way, but in the meantime welcome to Flying Solo!

    Hope to see you around. :)


    • Total posts: 873

    I can’t speak for the UK side of things. It comes down to what HMRC think of what you’re doing. At the very least though, you probably won’t get hit by IR35 based on what you’ve said.

    So. As a sole trader, or a company, domiciled in Australia, if your turnover is >75K you have to be registered for GST.
    However, with your clients being in the UK, you don’t charge them GST as it’s an export sale.
    Apart from GST, as a sole trader, your tax requirements are to pay tax at the appropriate marginal rate on your income earned while working here. It doesn’t matter that the source is overseas.
    I assume you’re invoicing in GBP. You’ll have to have your accounting system setup to understand that, and then run your reports accordingly.

    I’d suggest speaking with an accountant here, who can at least guide you on the Aus side of things.

    personally – some of my work comes from 2 UK companies. I treat them and the income from them the same as the Australian clients I work for (including that it all comes into one bank account)

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