Australian resident working in UK

peaman

I have been approached by an Australian looking to start self employment in UK, either as a sole trader or through a ltd company.

Does anybody know of any problems with this?

I have heard that an Australian director of a UK company may be liable to Australian corporation tax under their controlled foreign company regime. I don't know if this is true!

Any help would be appreciated.

jamesm96

My general advice to clients in this sort of situation is that they need to consult an accountant in the other country too.

So, I'd usually advise them based exclusively on the UK tax perspective, but then add the caveat that they'd need to put those recommendations to their Australian accountant to highlight any potential stumbling blocks in the other side.

Do be careful to make it very clear that you can only advise on the UK tax and accounting issues, to avoid any come-back if he misunderstands the scope of your advice (and to avoid any misunderstandings in the first place!)

deanshepherd

peaman wrote: »

I have heard that an Australian director of a UK company may be liable to Australian corporation tax under their controlled foreign company regime.

Only if the management and control of the company is undertaken in Australia (i.e. he lives there).

peaman

Thanks guys, it appears I wasn't told the full story before as she declared herself non resident for tax in Australia when she left and she has come to the UK on a polish passport. She also has a UK NI number as she worked here in the past (about 30yrs ago).

So it all looks OK!

peaman

Just thought, as James mentioned, I will still need to advise her that she will need to check the tax rules in Poland (i.e. double taxation), but as an EEA resident she will receive the UK personal allowance.

jamesm96

peaman wrote: »

she declared herself non resident for tax in Australia when she left

Unless she was wrong to do so... tread carefully with international issues; definately recommend that she takes appropriate advice for the foreign tax(es).

Mike.

pet3rc

Go to a tax advisors to help you