EOI Possibilities

Moorf · Posted: Thu Aug 19, 2004 5:00 am Post subject: EOI Possibilities

We may have the opportunity to be employed by a UK company and they are happy for us to be located in NZ.... is this something that we can do with residency or must we work for a NZ company - I know that we can start up our own business etc etc if on residency but how about the above scenario - it would certainly mean that our income would be above average in NZ but a) where would we pay tax and b) would NZIS not like the fact that we are not contributing to a NZ company/industry???

fingers crossed

alexh · I'll Hang Around A Little Joined: 06 Aug 2004 Posts: 34

Although not an expert on these things, I have worked abroad before, and the usual rule is you pay tax where you work. Where you work is normally decided by the number of days you are resident in the country.

(This is where countries have a taxation treaty to avoid double taxation).

My guess is if you were to work for the UK company starting in September, then for the most of this tax year you would actually be a NZ resident (i.e. more than 182 days) so pay tax on all your income for the year in NZ. You would then get a refund of what you already paid to the UK. Sometimes I think the UK will agree a pro rata amount as you are permanently leaving the country, so it would be even easier.

NZ and the UK have the same tax year I think (Apr-Apr), so its a bit easier than some other places.

I hope this helps, and even more I hope I am not misleading you. I know an accountancy company who specialise in this sort of stuff, I could let you have their details if you like. (No idea what they know about NZ though!)

all the best

alex

Moorf · Posted: Thu Aug 19, 2004 6:17 am Post subject:

I think I shall have to ask our accountant (I was avoiding the predictable 1 hour phone call - all billable of course Sad

)....

Thanks Alex for your info Nice One

Tara Sage · Posted: Thu Aug 19, 2004 7:39 am Post subject:

NZ tax year definately runs Apr - Apr the same as UK, I don't know how it works with being employed by an English company, but we both got Tax refunds from the Inland Revenue UK when we left.

Which was nice they even managed to pay mine within 3 weeks of submitting the form now that must be a record for the Inland Rev!!!

Dan has been told that he will get one in Apr here as well seen as he won't of worked the entire tax year Hmmm

If people want to give us money we don't mind!!!

Sorry for Waffling