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Where Taxpayers and Advisers Meet

Where to pay Tax?

angloz
Posts:1
Joined:Thu May 22, 2014 4:36 am
Where to pay Tax?

Postby angloz » Thu May 22, 2014 4:45 am

Hi,

I am not sure who to speak to first (UK or Australia), but I thought this would be a good place to start.

I've been living in Australia for nearly 2 years, I've only just been granted the correct visa and I've been self-employed for a month. The problem is, I am a web designer and all of my business comes from clients based in the UK. I currently receive all payments into a UK bank account before transferring them to Australia.

I don't spend anytime in the UK (aside from the one month a year I may visit friends and family on hols), so do I have any tax liabilities in the UK?

Many thanks,

C

nikkisizer
Posts:342
Joined:Fri Nov 04, 2011 5:26 pm
Contact:

Re: Where to pay Tax?

Postby nikkisizer » Sun May 25, 2014 6:41 am

Hi angloz,

Based on the information provided you are would be classed as non UK resident so would not be liable for UK tax on your earnings.

Happy to help so if you need any further assistance please do not hesitate to contact me.
Kind regards,

Nikki Sizer

Sizer & Co Accountants
nikki@sizeraccountants.com
[url]http://www.sizeraccountants.com[/url]

Birmingham - London - Manchester - Leeds

etf
Posts:1279
Joined:Mon Nov 02, 2009 5:25 pm

Re: Where to pay Tax?

Postby etf » Sun May 25, 2014 9:35 am

Hi angloz,

From the information provided, I don't think we can tell whether you are definitely non-UK resident under the new UK statutory residence test.

Looking at the 5 automatic overseas tests, two require death (never a good option), the second requires you to have been non-UK resident for the 3 preceding tax years (not applicable here) and the first requires annual visits of less than 16 days (not applicable here). Therefore the only automatic overseas test that could apply to you is the third (full-time work overseas) which requires daily record keeping to record hours worked overseas etc.

If you fail all of the automatic overseas tests, you will have to review the automatic UK tests and then perhaps the sufficient ties test to establish whether you non-UK resident.

Kind Regards

etf

www.theexpatriatetaxfactory.com


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