Moving to Australia as self-employed requires different planning than employed expats. Different visa requirements, business registration, and tax treatment.
This guide covers what UK freelancers and contractors need to know.
Quick Summary
Key points:
- ⚠️ Must register for ABN (Australian Business Number)
- ✅ Can operate as sole trader or company
- ⚠️ Must close UK self-employment properly
- ⚠️ Continuing UK clients may create UK tax issues
- 📋 Visa options more limited than employed routes
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Australian Business Setup
Option 1: Sole Trader
Most common for freelancers:
- Register for ABN (Australian Business Number)
- Trade under your own name
- Simple structure
- Report business income in personal tax return
Tax: Income taxed at personal progressive rates (0-45% + 2% Medicare).
Option 2: Company (Pty Ltd)
For larger operations:
- Register company with ASIC
- Company tax rate: 25% (small business) or 30%
- More compliance requirements
- Professional credibility
Setup costs: AUD 500-2,000 plus ongoing compliance.
Getting ABN
Australian Business Number essential for:
- Invoicing clients
- GST registration (if required)
- Business bank accounts
- Tax lodgment
How to register:
- Online via ABR (Australian Business Register)
- Free
- Requires Australian visa and address
- Instant for sole traders
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Choosing sole trader vs company? Get a personalised comparison for your revenue level and business type.
Closing UK Self-Employment
Deregister Self-Assessment
Once non-UK resident and not trading in UK:
- File final UK Self Assessment
- Mark as non-resident from departure
- Close registration
- Pay outstanding tax
Important: Don’t skip this or HMRC expects returns indefinitely.
VAT Deregistration
If VAT registered:
- Deregister when stopping UK taxable supplies
- File final VAT return
- Account for remaining stock
Critical: If keeping UK clients, VAT treatment becomes complex.
National Insurance
- Class 2/4 NI stops when non-UK resident
- Consider voluntary contributions (£179/year) for state pension
Australian Taxation
Sole trader income:
- Include in personal tax return
- Taxed at progressive rates (0-45%)
- Plus 2% Medicare levy
- Claim business expense deductions
Company income:
- 25% tax rate (if small business)
- Director salary + dividends structure available
- More complex compliance
GST (Goods & Services Tax):
- Must register if turnover >AUD 75,000/year
- 10% on most goods/services
- Quarterly reporting
Visa Options
Self-employed visa options limited:
Temporary Skill Shortage (subclass 482):
- Need employer sponsor (won’t work for self-employed)
Business Innovation visa (subclass 188):
- Requires significant business turnover/investment
- Points-tested
- State nomination required
- Complex application
Working Holiday visa:
- Can work as freelancer
- Age restrictions (18-30 or 35)
- Time limited
Partner visa:
- If Australian spouse/partner
- Can work including self-employment
Most self-employed need creative visa solutions or business visa category (expensive and complex).
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Exploring visa options? Get a personalised report analyzing self-employment visa pathways for your situation.
Continuing UK Clients
Many self-employed want to keep UK clients.
Key question: Are you still trading in UK?
Generally NOT UK-trading if:
- Physically in Australia
- Invoicing from Australian entity (ABN)
- Services delivered from Australia
However, HMRC may argue UK-trading if:
- Regular UK visits for clients
- Services substantially in UK
- UK premises
The distinction depends on your specific business model and client relationships.
Common Questions
Can I invoice UK clients from Australia without UK tax?
Generally yes, if genuinely Australia-based and not trading in UK.
Do I need UK company if I keep UK clients?
No. Invoice from Australian ABN. UK clients pay internationally.
What about IR35?
IR35 is UK rule for UK companies. Once non-UK resident operating via Australian entity, IR35 doesn’t apply.
Can I keep UK limited company?
Yes, but creates ongoing UK obligations. Most close UK companies when moving.
Key Mistakes
1. Not closing UK self-assessment
HMRC issues penalties for unfiled returns.
2. Continuing UK entity
Creates ongoing UK corporate tax obligations.
3. Not registering ABN
Can’t operate legally in Australia without it.
4. Forgetting GST registration
If turnover >AUD 75k, GST registration mandatory.
Disclaimer
This guide provides general information only and does not constitute business or tax advice. Self-employment rules depend on individual circumstances – business type, client base, revenue level, and numerous other factors. Always consult qualified tax and business advisors.