[boduke]

Having just filled in the NZ tax return (leaving it til the last minute of cause), we appear to both owe quite large shortfalls after calculating our tax. We only arrived in NZ in Jan - working since Feb, and all our tax in the UK was up to date, so does this happen to everyone??? My only hope is that on the back of the form is a line that mentions the IRD calculating the tax if you have only been in the country for part of the year, so why do they ask us to calculate the tax? Can anyone who emigrated and so has already done their first tax return put my mind at rest? :(

[clg]

That does not sound right as long as you are earning in NZ and not still getting paid from the UK or unless you have some other big source of income like investments. Are you putting down the income you earned in the UK while you still lived there and before you were a NZ resident? The form makes it look like you should do that but I called IRD and they said you do not need to do that. I had a panic attack when I did that and I thought we suddenly owed A LOT of money, I was getting ready to jump on a plane!

[mtgillick]

so how does the tax work?
i take it you dont get deductions from your wages?

[Trigirl]

As far as I can see it works the same as in the UK. You have tax deducted at source by your employer then if necessary you fill out a tax return at the end of the year to pay any extra you owe/claim any back.

[mtgillick]

is the tax more or less than uk?

[Nienke]

Thanks CLG, you just saved us from a panick attack!