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Anyone working in NZ for UK-based company?

Anyone working in NZ for UK-based company?

Old Jan 7th 2019, 4:24 pm
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Default Anyone working in NZ for UK-based company?

I am wondering if anyone has experience of being physically based in NZ while employed by a UK-based company without a NZ office?

Just to be clear, I am referring to being a salaried employee of the UK company - not a freelancer, contractor or sole trader.

I have had legal advice that the UK company would be responsible for paying income tax to the IRD, but I don't see how this could happen if the UK company doesn't have a legal/corporate entity in NZ.

I have also reached out to the IRD about this but haven't heard anything back yet. So I thought I'd see if anyone here is aware of someone working like this.

Thanks,
Giles
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Old Jan 7th 2019, 8:01 pm
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Default Re: Anyone working in NZ for UK-based company?

I would make an appointment with an accountant who specialises in this area for your peace of mind. We only have experience as a contractor to an overseas company, and that is complicated enough as it is.
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Old Jan 8th 2019, 7:18 am
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Default Re: Anyone working in NZ for UK-based company?

Originally Posted by GilesB View Post
I am wondering if anyone has experience of being physically based in NZ while employed by a UK-based company without a NZ office?

Just to be clear, I am referring to being a salaried employee of the UK company - not a freelancer, contractor or sole trader.

I have had legal advice that the UK company would be responsible for paying income tax to the IRD, but I don't see how this could happen if the UK company doesn't have a legal/corporate entity in NZ.

I have also reached out to the IRD about this but haven't heard anything back yet. So I thought I'd see if anyone here is aware of someone working like this.

Thanks,
Giles
Unless you already have a visa that allows you to stay in NZ; I don't think this arrangement is a viable means of living in NZ long term, other than as a visitor.

Do you have a visa that affords you the right to stay here as long as you like? Does your company generate income from NZ currently? Are they paying tax in NZ?
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Old Jan 8th 2019, 8:35 am
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Default Re: Anyone working in NZ for UK-based company?

Originally Posted by Bo-Jangles View Post
Unless you already have a visa that allows you to stay in NZ; I don't think this arrangement is a viable means of living in NZ long term, other than as a visitor.

Do you have a visa that affords you the right to stay here as long as you like? Does your company generate income from NZ currently? Are they paying tax in NZ?
Yes, I'm actually a Kiwi looking at returning to NZ after 12 years in dear old Blighty (sorry, should have mentioned that in original post).

To your second and third questions: no, my company has no presence or activity in NZ currently - that is what makes this potential arrangement complicated.
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Old Jan 8th 2019, 11:39 am
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Default Re: Anyone working in NZ for UK-based company?

There was a time you would open an account in Channel Islands or isle of Man so your salary is remitted offshore. So much has changed this may not be a viable option anymore, yet maybe worth a look
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Old Jan 9th 2019, 5:42 am
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Default Re: Anyone working in NZ for UK-based company?

You could work for them as a contractor and bill them - then you just declare your personal income tax to IRD.

Otherwise I think potentially they could just continue to pay you into UK bank account as normal and then you declare your income to NZ IRD and they will decide if you owe anything else here or will credit you if anything due.

https://www.ird.govt.nz/internationa...payingtax.html
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Old Jan 10th 2019, 11:39 pm
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Default Re: Anyone working in NZ for UK-based company?

i worked the first 4 years of my time in NZ for a UK company - same as you describe, I was working from home for a UK company that was solely based in the UK, just filled an IR3 form in at the end of every tax year, your income from the UK should be Tax free if everything is sorted correctly at that end, i got in in writing from Inland Revenue (UK) that that would be the case before i left Blighty, to calculate the GBP-NZD amount for tax purposes do an average of the exchange rate every month and work out what each month income was in NZD, worked for me . TBH I was very worried about this before I arrived but once you've done it once its all good

In saying all that is was 10 years or so ago, a lot can change in the tax world in that time

- PM me if you think it'll help, no expert but have been through what you describe

Last edited by bga; Jan 10th 2019 at 11:47 pm.
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Old Jan 12th 2019, 11:18 am
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Default Re: Anyone working in NZ for UK-based company?

Originally Posted by bga View Post
i worked the first 4 years of my time in NZ for a UK company - same as you describe, I was working from home for a UK company that was solely based in the UK, just filled an IR3 form in at the end of every tax year, your income from the UK should be Tax free if everything is sorted correctly at that end, i got in in writing from Inland Revenue (UK) that that would be the case before i left Blighty, to calculate the GBP-NZD amount for tax purposes do an average of the exchange rate every month and work out what each month income was in NZD, worked for me . TBH I was very worried about this before I arrived but once you've done it once its all good

In saying all that is was 10 years or so ago, a lot can change in the tax world in that time

- PM me if you think it'll help, no expert but have been through what you describe
Thanks bga, that is very helpful. Can you remember the logistics: i.e. did the UK company pay your salary gross or after tax deductions? I have now had advice from a NZ tax lawyer that the UK company would have to pay the PAYE income tax directly to the IRD. And did the UK company pay your salary into a UK or NZ bank account?
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Old Jan 14th 2019, 1:42 am
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Default Re: Anyone working in NZ for UK-based company?

Hi Giles, i'll PM you if ok with my experience
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Old Jan 14th 2019, 7:13 am
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Default Re: Anyone working in NZ for UK-based company?

Originally Posted by bga View Post
Hi Giles, i'll PM you if ok with my experience
Fine by me - thanks.
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Old Jan 14th 2019, 8:07 am
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Default Re: Anyone working in NZ for UK-based company?

https://www.ird.govt.nz/internationa...payingtax.html

"If you've received overseas income that's also been taxed in another country, you may be entitled to a credit for the tax already paid"
I guess you will have to fill out forms for IRD each year with evidence of tax paid in UK to be able to claim the credit.
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Old Jan 15th 2019, 6:42 am
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Default Re: Anyone working in NZ for UK-based company?

Your UK employer will have to be registered with IRD, have an IRD number and be registered for PAYE if they are to deduct your tax and pay to IRD direct
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Old Feb 13th 2019, 11:51 am
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Default Re: Anyone working in NZ for UK-based company?

Hi bga and Giles,

Hopefully you do not mind me jumping on the bandwagon but we are in the same position, my husbands company is allowing him to work in NZ but get paid a UK salary although we are not sure how long we can do this for. We are moving back home next January, I am a kiwi and my husbands has his visa through me. If either of you can give me any pointers regarding this I would be so grateful. thanks so much
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Old Feb 13th 2019, 8:15 pm
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Default Re: Anyone working in NZ for UK-based company?

Hi Kiwigirl78 - have PM'd you
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Old Feb 14th 2019, 11:24 am
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Default Re: Anyone working in NZ for UK-based company?

thanks BGA, I need to write one more post before I can read it...lol
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