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NZ Tax Resident / UK Ltd Company / TAX ?!?!

NZ Tax Resident / UK Ltd Company / TAX ?!?!

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Old Dec 12th 2017, 8:58 pm
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Post NZ Tax Resident / UK Ltd Company / TAX ?!?!

Hi There,

Sorry if this has been covered before. I saw one post but it was from some time ago and I know tax laws change, so was wondering if anyone has more recent knowledge of this.

I returned from the UK last year but the company I contracted to, out of my UK Ltd company wanted to keep me working for them all be it supporting Asia Pac Business Unit and timezone as they had a opening there.

We looked into them playing me locally but for what ever reason that was not possible (internal policies I think as they don't have a NZ presence). The only way I could make it work was with them continuing to pay me via the contracting agency into my UK Ltd Company.

I have phoned IRD and they have told me its fine, just to pay tax in NZ on my personal income via IR3 form. Then UK ltd company should pay corp tax in the UK.

I have phoned HMRC who told me the same, I have been issued with a No TAX code in the UK, but the company should still pay its taxes there.

So this year I have been plodding along paying myself a small salary just enough to cover expenses due to exchange rate being terrible.

My issue now though.. is that I also have read that as the sole director/share holder this can mean the company also becomes tax resident in NZ not the UK? Is anyone out there doing the same as me ? Working for their own UK Ltd Company but based in NZ? Is it best to just take all the money from the company as Salary and pay the tax on it in NZ?

Thought I would try here before searching for an accountant but it may be my only option.
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Old Feb 19th 2018, 4:13 am
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Default Re: NZ Tax Resident / UK Ltd Company / TAX ?!?!

Hi,
I've got a pretty good NZ accountant and work between them and the UK accountant for my UK limkited company.
I finished up working for the US client via my UK limited company while physically being in NZ in August (admittedly only worked a month doing this, but had expected to do this for longer)
I'm currently getting advice on taking dividends and how this impacts my NZ tax... UK accountant told me to check NZ tax situation....
Looking like the 4 year tax break a returning resident/new immigrant gets could be a big bonus...
Best you get local accounting advice... PM me if you want the name of my NZ accountant
Cheers
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Old Feb 19th 2018, 6:19 am
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Default Re: NZ Tax Resident / UK Ltd Company / TAX ?!?!

You need proper advice but I suggest IRD would determine that your business is resident in NZ for tax purposes based on these two points - it only has to be one of them and appears likely that you would satisfy both:

It has its centre of management in New Zealand
This is the place from where the company as a whole is managed on a day-to-day regular basis.

It has its head office in New Zealand
The head office is a company is the office from which the business of the company is directed and carried out. The focus of the test is the physical place of administration and management which is superior to all others.

What is my company's tax residency (Tax residency and status)
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