Hi All,
I find myself in an unusual situation where a (UK based) company I bill under my sole trading business (in Australia) says they’d like to change our arrangement and make me an employee in their AU office. What’s bizarre is that they’d like to backdate my employment and pay super/pension for those years.
I used to work for them as an employee in the UK. When I moved to Aus, I started billing them as a sole trader as employment was not an option and initially it was supposed to be a short term arrangement but then covid hit and everyone realised working remotely is possible.
My accountant have not heard of such practices before and suggested that backdating employment years back will bring huge penalties and interest charges from the AU tax dept. and my tax returns would also have to be reversed not mentioning the tax corrections the UK company would have to make in the UK.
Is it possible the UK employer is trying to ‘erase’ the arrangement due to some legalities they were not aware of before? AI is suggesting a sham contract situation and potential tax penalties for mischaracterisation of the relationship.
I’m trying to figure out what I’m getting myself into and prep for contract negotiations. I don’t want to get in to trouble with the tax man!
Any advice will be greatly appreciated.
Many thanks,
CrossBreed
I find myself in an unusual situation where a (UK based) company I bill under my sole trading business (in Australia) says they’d like to change our arrangement and make me an employee in their AU office. What’s bizarre is that they’d like to backdate my employment and pay super/pension for those years.
I used to work for them as an employee in the UK. When I moved to Aus, I started billing them as a sole trader as employment was not an option and initially it was supposed to be a short term arrangement but then covid hit and everyone realised working remotely is possible.
My accountant have not heard of such practices before and suggested that backdating employment years back will bring huge penalties and interest charges from the AU tax dept. and my tax returns would also have to be reversed not mentioning the tax corrections the UK company would have to make in the UK.
Is it possible the UK employer is trying to ‘erase’ the arrangement due to some legalities they were not aware of before? AI is suggesting a sham contract situation and potential tax penalties for mischaracterisation of the relationship.
I’m trying to figure out what I’m getting myself into and prep for contract negotiations. I don’t want to get in to trouble with the tax man!
Any advice will be greatly appreciated.
Many thanks,
CrossBreed
