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Moving to NZ but own a business in UK

Moving to NZ but own a business in UK

Old Oct 10th 2014, 6:51 pm
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Default Moving to NZ but own a business in UK

Another thread from me sorry!

Looking to move to NZ in Jan/Feb to live and work.

In addition to working, I also run a small web design company with a friend back in the UK (limited company - i'm a director).

Am I allowed to keep this going when I move? There doesn't seem to be anywhere to write about it on the P85 inland revenue form, so not sure what happens with tax?

Would there be any implications with nz tax, or would i continue to do my uk self-assessments? i'd have any income from this paid into my uk bank account.

thanks!
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Old Oct 10th 2014, 8:48 pm
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Default Re: Moving to NZ but own a business in UK

you are exempt from double paying tax in NZ for 4 yrs from when you first arrive, just make sure you are paying in the UK and can provide evidence of it.
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Old Oct 10th 2014, 9:00 pm
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Default Re: Moving to NZ but own a business in UK

Ok thanks. So I just carry on as normal
With the UK stuff then I guess? Do I need to declare
It other than via the self-assessment that I do now?
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Old Oct 11th 2014, 12:08 am
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Default Re: Moving to NZ but own a business in UK

I personally would but you do need to keep a check on it as Moonie had prblems this first year where they told her she had a huge tax bill to pay as they had not taken into consideration the four years exemption. She did get that removed and a rebate with a quick phone call.
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Old Oct 11th 2014, 9:37 am
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Default Re: Moving to NZ but own a business in UK

I don't know if it's relevant to the OP, but you if you don't declare under the four year rule you can't claim Working for Families Tax Credits. You'd need to work out if it's worth it.

The link about the migrant tax rule is here: http://www.ird.govt.nz/yoursituation...reign-inc.html

I'd contact the UK IRD directly and discuss your tax situation with them. It will probably be a matter of which self assessment form you fill out. It should be pretty easy for you to do though.
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Old Oct 11th 2014, 10:02 am
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Default Re: Moving to NZ but own a business in UK

Ok thanks. I'll also chat to my accountant back here to see what he reckons.

I definitely will declare it as I don't want to be 'double taxed'.

So what happens after 4 years, would I then be at risk of double taxing?
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Old Oct 11th 2014, 11:56 am
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Default Re: Moving to NZ but own a business in UK

Ok, so have spoken at length with HMRC and here's the score:
- as i'll be working for a uk business on NZ soil, then I'm actually taxable in NZ rather than in the UK. I basically just have to write them a letter before I leave advising of this and they will then issue me with a 'no tax' code (NT code) for use on my UK self-assessment.
- dividends are slightly different - they are taxed in the UK.

I'll have to do some kind of 'self-assessment' in NZ for my uk business work. Does anyone have any experience of this? Is it simple?
And on a related matter, I wonder if my future nz employer will be happy with me also running a business outside of working hours. hmmmm lots to think about.
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Old Oct 11th 2014, 9:26 pm
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Default Re: Moving to NZ but own a business in UK

Yes I had problems, we declared and got taxed on everything, they did put it right but the emotional stress of opening the letter expecting a refund and being told we owe $8k was not funny, and over a weekend too
Friends who are very monetise spoke with IRD when they arrived and they were told not to declare any uk income until the 4yrs are up. I suspect we will have to do it all again next yr
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Old Oct 11th 2014, 11:42 pm
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Default Re: Moving to NZ but own a business in UK

This page is helpful Temporary tax exemption on foreign income for new migrants and returning New Zealanders (For non-residents & visitors) it tells you what is and isn’t exempt under the four year rule.
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Old Oct 12th 2014, 6:36 pm
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Default Re: Moving to NZ but own a business in UK

thanks all! ruddy tax!
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Old Oct 12th 2014, 8:14 pm
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Default Re: Moving to NZ but own a business in UK

Originally Posted by darbydoo View Post
Ok, so have spoken at length with HMRC and here's the score:
- as i'll be working for a uk business on NZ soil, then I'm actually taxable in NZ rather than in the UK. I basically just have to write them a letter before I leave advising of this and they will then issue me with a 'no tax' code (NT code) for use on my UK self-assessment.
- dividends are slightly different - they are taxed in the UK.

I'll have to do some kind of 'self-assessment' in NZ for my uk business work. Does anyone have any experience of this? Is it simple?
And on a related matter, I wonder if my future nz employer will be happy with me also running a business outside of working hours. hmmmm lots to think about.
Hi darbydoo, you should take some advice when you arrive in New Zealand regarding the treatment of UK dividends as the law changed about four or five years ago regarding the tax treatment. I employ a tax accountant to sort mine out. the same goes for some, but not all, Australian dividends.

You may find that the salary that you take from your UK company is taxable in New Zealand because you are resident and working here, but the tax treatment of the company itself may be subject to UK tax law, not NZ tax law.

Personally speaking, I would obtain tax advice from a good accountant as soon as you arrive.
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Old Oct 12th 2014, 8:17 pm
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Default Re: Moving to NZ but own a business in UK

Further to my post just submitted, you may find it convenient to approach NZ Inland Revenue Department to register, ie obtain an IRD number. Then, ask IRD for a form to send to HMRC saying that NZ IRD will tax you. Then HMRC will issue you with the NT code. This way, it keeps you safe from any hint of money laundering and avoiding tax.
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Old Oct 12th 2014, 8:17 pm
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Default Re: Moving to NZ but own a business in UK

Yes beginning to think that would be a wise idea!

I'm actually thinking of removing myself as a director and just being an 'employer'. This would make things simpler!
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Old Oct 12th 2014, 8:18 pm
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Default Re: Moving to NZ but own a business in UK

Ok thanks for the advice!
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Old Oct 15th 2014, 2:04 am
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Default Re: Moving to NZ but own a business in UK

Originally Posted by nzneville View Post
Personally speaking, I would obtain tax advice from a good accountant as soon as you arrive.
I fully agree with NZneville. For an hour or so of an accountants time, you will be able to sort out the correct treatment for your situation. Tax is not a simple subject and one persons situation can be completely different to another, therefore seek an accountant with experience and knowledge in this area (UK & NZ assets). There are a few rules that can catch people out, as well as some tax advantages when you first move to NZ. Best to be informed rather than end up with an unexpected tax bill (and a headache trying to sort it out after the fact!).

All the best with the move.
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