I have a UK resident client who is self-employed (although has NIC deducted when working for BBC), all work is via an agent that does self-billing. He has been asked to tour with a show in Australia for a few weeks. He is a choreographer and will not be part of the cast or on stage. The contract will be with BBC Worldwide Australia & NZ.
He has been told that Australian tax will be deducted (probably at 32.5%) and that he will need a TFN and will need an Australian accountant to make a reclaim. However, does anyone know if this is correct? I can't find any material about it on the Australian Inland Revenue website, but it seems to me that because my client is self employed and a crew member, not a cast member, no withholding tax should be deducted.
It's a pain having to apply for a TFN and then use an Australian accountant, if withholding tax is due is there any way around this?
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Entertainer withholding tax in Australia
MY understanding of the Australian tax system is that it is rather draconian if you are non-resident.Unless your client spends more than 6 months in Australia he probably won't be entitled to make a reclaim. Have you thought about getting a Certificate of Residence or other confirmation from his tax office that he is a UK tax payer. I have many clients who are entertainers and often work abroad, if given enough notice I do this and they often don't get withholding tax deducted. No experience of this in Australia however.
On a different note since April your client will not have had NIC deducted by the BBC or any other company if he is self-employed. HMRC changed the rules and he should be paying Class 2 only.