Australian in Aus - contracting for UK company (ex employee)

[JasonL]

Hi all,

I am posting on behalf of my partner as I have some more time on my hands and desperately trying to get a solution for her.

Ok, so long and short of it is - we met in London and she is a Senior Designer in the publishing industry. She had a long tenure with her company for 5 years and we decided to move to Australia at the end of her visa. We’ve been here for a year now. Initially she was working freelance for them but in April they said due to tax law changes they couldn’t keep her on the books?

She has a registered ABN and all things to work freelance / contract. But they said, from what they have been advised, that they can’t keeep her on because she’s doing the same job as someone in house? Now, that seems redundant and I wonder whether it was just poor advice they were given.

I’ve spent more time looking into this and come across such things as “shadow payroll” to protect the UK employer and we would pay all taxes locally.

Has anyone got any insight to this and are there actual rules in place that mean this won’t work? Or has there been an error that end? And if so, what would we need to propose / setup to get things working with them again?

Thanks in advance!!!

[Lance]

There aren’t any rules that make them do this.
They’re probably doing it out of choice but lack the balls to say so.
She needs to find other work.

[JasonL]

There aren’t any rules that make them do this.
They’re probably doing it out of choice but lack the balls to say so.
She needs to find other work.

Is that really the case?

I do get what you’re saying, but, in defence of the person that wants her, she was advised by a so called lawyer. They have since offered her her full time job back in the UK along with the sponsorship required - so I do genuinely believe they have the best intentions but have been mislead or misinformed.

She is still working for them on a project which is a 2 month thing.

Is there any particular way to position this or advise them it’s incorrect?

Thanks

[ladymuck]

Aren't freelancing rules in Australia different? Maybe that's where the complication has come in.

[Fred Bloggs]

Aren't freelancing rules in Australia different? Maybe that's where the complication has come in.

Overwhelming majority of contractors in Oz are essentially agency temps rather than freelancers. Small minority who have multiple concurrent jobs running may manage to be freelance as we have traditionally known it, but it is a small minority in my own experience. Like the UK should be after next April, essentially, with everyone on PAYE.

Myself, I was significantly better off as a staff guy in my last job in Oz than I would have been as an agency worker doing a similar job.

[eek]

Aren't freelancing rules in Australia different? Maybe that's where the complication has come in.

Yep they have an 80/20 rule similar to Germany's.

[Lance]

in April they said due to tax law changes they couldn’t keep her on the books?

April tax changes in the UK are IR35 related....

Is that really the case?

I do get what you’re saying, but, in defence of the person that wants her, she was advised by a so called lawyer. They have since offered her her full time job back in the UK along with the sponsorship required - so I do genuinely believe they have the best intentions but have been mislead or misinformed.

and IR35 isn't a cause for concern if the individual worker is outside the UK for the work.
Of course the lawyer might be wrong....

Or as I was driving at in the first place, they have a new policy and don't care about the details of one exceptional individual. So they just tell half a truth.

[JasonL]

Yep they have an 80/20 rule similar to Germany's.

We are getting push back or any issues from here. It’s from the UK saying that they can’t hire someone who’s a contract worker doing the same job as someone in-house. But I believe they have either misunderstood something or been passed poor information.

[JasonL]

Overwhelming majority of contractors in Oz are essentially agency temps rather than freelancers. Small minority who have multiple concurrent jobs running may manage to be freelance as we have traditionally known it, but it is a small minority in my own experience. Like the UK should be after next April, essentially, with everyone on PAYE.

Myself, I was significantly better off as a staff guy in my last job in Oz than I would have been as an agency worker doing a similar job.

The salary my partner was earning working on a full time contract with her uk company was marginally better all in. Even after you take tax, super etc into account.

We are going to broach the subject again and will try to find out exactly what they were advised and hopefully get back on the books with them.