Personal allowance for UK income when employed in Australia

Personal allowance for UK income when employed...

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We have a director of a company who usually takes a minimal salary and dividends each year from his company keeping his salary level below the personal allowance. He has been offered a contact to work in Australia for 18 months working for another company on an employed basis. His partner will still be running his UK business. My question is, can he still utilise his UK personal allowance and take a salary in the UK. Presumably any tax he pays in Australia will be relieved under the Double Taxation Agreement.

Not something we've dealt with before - any help gratefully received.

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By Steve Knowles
21st Jun 2011 09:07

working in Australia

He is presumably hoping to become non-resident in the UK, so as to avoid his Autralain income becoming subject to UK tax. The problem with maintaining a salary from his company might be that HMRC could argue that "running" a UK company would affect his residence position - the ties could mean that he never becomes non-resident.

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