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Old Nov 9th 2017, 10:27 pm   #1
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Default Running a business from the UK whilst in NZ on an Essential Skills Visa?

Hey guys - I hope that someone can help with this conundrum!

I've asked advice from some friends who run their own online businesses and are dotted around the globe, but no one seems to have a clear cut answer (making me think they don't know what they're doing either).

I'm a UK citizen but I'm currently in New Zealand. I return to the UK at least once every 12 months for a visit (at least two weeks). I have recently been granted a three year Essential Skills Visa after being on a Working Holiday Visa for a year.

I recently launched an online CV/resume writing business which is international (.com address), however in reality most of my clients are based in New Zealand. I've set up a Paypal Merchant account where I can be paid in any currency, and I deposit this into a UK bank account.

From a UK perspective: Am I legal in what I'm doing so long as I declare my income with HMRC and file my UK taxes correctly.

From an NZ perspective: One of the Essential Skills visa conditions is that I can't be self employed, but I assume that this means just in New Zealand. I imagine a lot of expats have limited companies set up for properties and whatnot at home? Any insight would be great.

Sadly this business isn't a crazy money spinner or anything, I just wanted to test the water and see how it went, and it's doing okay so it would be a shame to have to pack it in after the work I've put in. The amount I make in the next year is unlikely to raise any eyebrows...but I would like to know the correct way of doing things.

Thanks!
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Old Nov 10th 2017, 4:06 am   #2
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Default Re: Running a business from the UK whilst in NZ on an Essential Skills Visa?

Hi, I think you would need to speak to an accountant that understand both NZ & UK tax implications. especially after the change of Government lately
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Old Nov 10th 2017, 7:01 am   #3
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Default Re: Running a business from the UK whilst in NZ on an Essential Skills Visa?

Quote:
Originally Posted by mazmataz View Post
Hey guys - I hope that someone can help with this conundrum!

I've asked advice from some friends who run their own online businesses and are dotted around the globe, but no one seems to have a clear cut answer (making me think they don't know what they're doing either).

I'm a UK citizen but I'm currently in New Zealand. I return to the UK at least once every 12 months for a visit (at least two weeks). I have recently been granted a three year Essential Skills Visa after being on a Working Holiday Visa for a year.

I recently launched an online CV/resume writing business which is international (.com address), however in reality most of my clients are based in New Zealand. I've set up a Paypal Merchant account where I can be paid in any currency, and I deposit this into a UK bank account.

From a UK perspective: Am I legal in what I'm doing so long as I declare my income with HMRC and file my UK taxes correctly.

From an NZ perspective: One of the Essential Skills visa conditions is that I can't be self employed, but I assume that this means just in New Zealand. I imagine a lot of expats have limited companies set up for properties and whatnot at home? Any insight would be great.

Sadly this business isn't a crazy money spinner or anything, I just wanted to test the water and see how it went, and it's doing okay so it would be a shame to have to pack it in after the work I've put in. The amount I make in the next year is unlikely to raise any eyebrows...but I would like to know the correct way of doing things.

Thanks!
I am not an expert in this field so my comments have questionable value, but to me it sounds like the business operates in NZ so should declare and pay tax in NZ.

I can't imagine that HMRC care what is going on.
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Old Nov 10th 2017, 7:30 pm   #4
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Default Re: Running a business from the UK whilst in NZ on an Essential Skills Visa?

Thanks for the advice guys, it's all a bit murky. I actually currently live in Queenstown with a UK lawyer who has a bit of tax and immigration experience, and she isn't sure either so is currently putting the call out to some old colleagues for me.

I'll pay tax wherever I need to pay tax, my main concern is messing up the terms of my visa.
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Old Nov 10th 2017, 8:57 pm   #5
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Default Re: Running a business from the UK whilst in NZ on an Essential Skills Visa?

Quote:
Originally Posted by mazmataz View Post
Thanks for the advice guys, it's all a bit murky. I actually currently live in Queenstown with a UK lawyer who has a bit of tax and immigration experience, and she isn't sure either so is currently putting the call out to some old colleagues for me.

I'll pay tax wherever I need to pay tax, my main concern is messing up the terms of my visa.
One question I would consider is what is the payroll tax rate in NZ, and what is considered self-employment : if working for limited company ( your own) enough to void that, or a ltd company you don't "own" but is paying you.
I thin you have a very concern to deal with on the visa issue.

I believe there may be some tax implications if you are paid and remit funds to UK bank account from the work derived payment.
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Old Nov 10th 2017, 9:27 pm   #6
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Default Re: Running a business from the UK whilst in NZ on an Essential Skills Visa?

You need to check out the universal concept of 'tax residency' as it seems to me you should be paying your taxes in NZ not UK if you are living here for majority of the time.

i.e. If you spend more than 183 days in any one country per year then that's generally where you pay tax.

What is my personal tax residency? (Tax residency and status)
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