rick78

A quickie question for those in the know.

In the UK I managed to sort out my tax rebate before I left - and recently received a nice amount of tax back

How does it work in NZ?

I've started work part-way through the tax year... so would there be any rebate due next April? I'm thinking not since there is no personal allowance...

Genesis

You will have to submit an IR3 (even if you are on PAYE) as you have not completed a full tax year, that's what they told us. When you have done this it will be clear if you get a rebate or not. NZ IR3s are quite simple.

rick78

okey

since i'm being paid PAYE it must be pretty much spot on? is it likely to be that much out?!

Clappy

No, I don't think it is.

It depends on whether your total earnings for the full tax year would take you into a higher tax bracket than the amount that you will earn for this part year.

If your earnings for the year would put you in a higher tax bracket then you will pay too much through the year (unless you have other earnings that are not being taxed) and have to claim the over payment back.

Don't use an intermediary to do the tax reclaim for you. It is easy to do through the IRD website (unless you are the sort of person that is incapable of using the internet but if you have managed to register on here then you are capable of using the IRD site).

rick78

Yes that will happen... this tax year I'll be in the 30% bracket (not including ACC levy) and it will increase to 33% next year.

rick78

ok quick back of envelope calcs...

looks like i am earning in the top brackets, but being taxed on the slightly lower bracket, explaining the additional bit of cash in my pay packet

weirdly though when april comes around i'll be dropping down a bit!