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Discussion Starter · #1 ·
I currently run a couple of web sites that generates enough to pay a wage from advertising revenue. I am originally from the UK and the sites are run through a VAT registered UK limited company.

I have been granted an Australian tourist Visa for 12 months - Tourist Visa (Subclass 676) - immi.gov.au/visitors/tourist/676/, and plan to be out of the UK for a complete tax year.

While in Australia I plan to maintain these web sites from a laptop and pay myself from the UK limited company to my personal UK bank account in the form of wages and/or dividends (which ever is most tax efficient).

I am very confused as to what my residency and tax status will be. I do not believe I will be tax resident in the UK as I will be away for an entire tax year. Also I do not think I will be a resident of Australia as I will just be considered a tourist.

Will I be seen to be working illegally in Australia? I won't actually be employed in Australia. Also where should income taxes be paid? If I am out of the UK for a complete tax year I think it is possible to not pay income tax on wages?

Any advise/clarification is much appreciated.
 

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Hi Barabus,

I think you need to consult a UK tax accountant first (you may already have one) to establish whether you'll be seen as non-resident for tax purposes when you are still earning income in the UK and paying yourself wages there.

You are not a resident of Australia so I doubt that you'd be paying tax here.

Even though I'm no longer a tax resident in the UK (originally from the UK but a PR resident in Australia since July 2007) I still have to pay tax on money earned on rental properties in the UK so you may be in a similar situation especially since I assume that you still have a home in the UK and a business there.

Consult a tax advisor in the UK first and then if necessary find one who does Australia too.

Good luck and let us know how you get on.

Regards,
Karen
 

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Another member posted the exact same query? I've tried to do a search but can't find the thread....will keep on looking.

Dolly
 

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Discussion Starter · #4 ·
Thanks for the replies.

Is this the link you are meaning /expats/america-expat-forum-expats-living-america/29661-ltd-company-uk-live-us-where-do-i-pay-taxes.html (sorry, I can't put links in yet so you will need to cut and paste), it sounds similar.

The main difference is that he is on a spouse visa and is entitled to work in the US and as far as I know will be taxed on his world wide income in the US. If he pays himself a wage from the UK, then the wage is not taxed there because it will be taxed in the US. This is so that he is not taxed twice and is part of a dual taxation treaty between US and UK.

As far as I know Australia has a similar treaty and if you are a resident in Australia you would do the same thing, pay your self a wage from the UK with no tax and pay Australian tax on world wide income.

My situation is different because I would be a tourist in Australia and I presume not liable to pay tax, and also non resident in UK so not liable to pay tax there either? I am not sure but don't want to get in trouble with the Inland Revenue or kicked out of Australia.
 
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