[lehman]

Hi everyone,

I am currently a software engineer based in the UK, and I am planning the move to NZ with my partner who is the Primary Applicant on our ITA.

My current boss is aware of the planned move, and would like to retain me. As such he has offered to employ me, as a contractor, working from home via the internet, albeit 12 time zones away. So far, so good!

Can anyone advise whether it will be legal for me to do this from a tax point of view? Who do I ask and what is involved?

Thanks

Allen

[JandL]

I'd be interested in this, I may be in exactly the same situation. I was thinking more of going down the setting up a company and selling yourself back to your old employer. Could you then get tax breaks for paying for things like your office (a room in your house), internet line etc.

[veronica]

I think if you do a search you may unearth some info on this subject, there have been posts on it but under what wording??? I do know of quite a few people have done this/are doing this so its possible,just needs sorting.

[IanW99]

Hi everyone,

I am currently a software engineer based in the UK, and I am planning the move to NZ with my partner who is the Primary Applicant on our ITA.

My current boss is aware of the planned move, and would like to retain me. As such he has offered to employ me, as a contractor, working from home via the internet, albeit 12 time zones away. So far, so good!

Can anyone advise whether it will be legal for me to do this from a tax point of view? Who do I ask and what is involved?

Thanks

Allen

Hi and welcome to the forum.

You can work from home in NZ whilst providing services in the UK.

Any income that you derive from work in the UK will be liable to tax in the UK.

NZ IRD will also be interested in your world wide income so will also want to know about the income from the UK.

As NZ and UK have a double taxation agreement, any tax that you pay in the UK will be taken into account in NZ (as if you had paid NZ IRD). You will then be expected to pay any outstanding tax i.e. your income will be treated as if you worked in NZ so you are expected to pay the same amount of taxes.

Ian

[Jo Jo]

Any income that you derive from work in the UK will be liable to tax in the UK.



I think this depends on how you are paid. I freelance for a UK company, and invoice them for my services (i.e. I'm not on the payroll.) The company pays me the gross amount, and I then pay tax on the money in NZ, not in the UK.

[IanW99]

I think this depends on how you are paid. I freelance for a UK company, and invoice them for my services (i.e. I'm not on the payroll.) The company pays me the gross amount, and I then pay tax on the money in NZ, not in the UK.

AFAIK, if the income is derived in the UK then the UK HMRC want their 'cut.

It may come down to what services you provide, or how you bill them?

Practically speaking it makes little difference if you pay UK tax first and then the rest to NZ tax, or just pay NZ all the tax (apart from maybe some extra paperwork).

One tip would be to try to get your wages paid in NZ$ instead of £ i.e. so it doesn't fluctuate each month due to changes in the exchange rate.

Ian

[Jo Jo]

AFAIK, if the income is derived in the UK then the UK HMRC want their 'cut.

It may come down to what services you provide, or how you bill them?

It depends on whether you are employed by a UK company, or whether you are self-employed and providing services to a UK company. If you are self-employed, then you will be taxed on the income in NZ only.

(If that's not right, I'm going to have to sack my accountant! :))

[JandM]

I'm interested in this too, for the future, and have been thinking I must find an accountant who is up in all the complexities of UK/NZ income and tax, for some advice. Does yours fit the description, Jo Jo? Or can anyone else recommend a firm?

BTW, welcome to the forum, Lehman.:)

[globetrecker]

We've been researching like mad trying to make this work, but bottom line - you have to somehow get a NZ job offer. We thought you could get a work permit, etc, but that doesn't work either. You have to have a NZ job offer. You CAN get one, then quickly apply for an EOI, then quit after your paperwork goes through. That's the only way we've found. I'd love to hear from someone that has done it another way! We are so ready to make the move. Please someone help us!!!:clap

I know this thread mentioned the partner was being the primary, just thought I'd add my two cents for other browsers. Please PM me if you have any enlightenment :)

[JandL]

If you do not have enough points to qualify for PR then you would need a job offer, however if you can get PR without a job offer, I have seen nothing that would stop you working for your old employer 'remotely'. This is something I may attempt to do as we have already been granted PR without a job offer as I did not want to be tied in to a specific company.

[Jo Jo]

I'm interested in this too, for the future, and have been thinking I must find an accountant who is up in all the complexities of UK/NZ income and tax, for some advice. Does yours fit the description, Jo Jo?

Yes, my accountant specialises in UK/ NZ tax: http://www.sterlingtax.co.nz

[IanW99]

If you do not have enough points to qualify for PR then you would need a job offer, however if you can get PR without a job offer, I have seen nothing that would stop you working for your old employer 'remotely'. This is something I may attempt to do as we have already been granted PR without a job offer as I did not want to be tied in to a specific company.

From residence manual

SM7.1 Aim and intent
a. The aim of providing points for skilled employment is:
i to facilitate access by New Zealand employers and industry to global skills and knowledge; and
ii to recognise that people who have skilled employment in New Zealand are well positioned to meet New Zealand’s needs and opportunities and more quickly achieve positive settlement outcomes.

Note: The aim of providing points for skilled employment is not met by a person undertaking employment in their own business rather than for a third party. People wishing to obtain residence by establishing and operating their own business in New Zealand should apply under the Business categories.

If you get PR via skilled migrant category then you are expected to work for a NZ employer. If this isn't your intent then you are applying for the wrong visa so technically NZIS could revoke it.

I've no idea whether they would, or if they would even check?

Ian

[JandL]

I remember that point from another thread, I plan to ask INZ about this before I proceed anyway. The OP should have no fear as they are not the main applicant.