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Working in NZ paid in sterling? Need help!

Working in NZ paid in sterling? Need help!

Old Jan 9th 2007, 8:08 am
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Question Working in NZ paid in sterling? Need help!

Hello all,

I am currently negotiating with my current employer to continue working for them on a freelance basis when I move to NZ. I am a Graphic Designer so working remotely is very easy.

I was just going to have the money paid into my UK account and transfer the cash as and when we need it. Obviously this is great from the point of view of being paid in sterling but I am just wandering if anyone else can offer any experience on the tax side of things? Obviously I wont be working in the UK so wont be on the tax register, but I wont be on the NZ tax system either.

Any thoughts most welcome?
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Old Jan 9th 2007, 8:14 am
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by trigod View Post
Hello all,

I am currently negotiating with my current employer to continue working for them on a freelance basis when I move to NZ. I am a Graphic Designer so working remotely is very easy.

I was just going to have the money paid into my UK account and transfer the cash as and when we need it. Obviously this is great from the point of view of being paid in sterling but I am just wandering if anyone else can offer any experience on the tax side of things? Obviously I wont be working in the UK so wont be on the tax register, but I wont be on the NZ tax system either.

Any thoughts most welcome?
i would have thought that you are earning GBP and being employed by a GB company. so you are on their payroll and therefore liable for UK tax.

the uk tax office are really nice friendly people to speak to (have to speak to them frequently as I am an emoployer) - i would give them a call.
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Old Jan 9th 2007, 8:16 am
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by dreamfish View Post
i would have thought that you are earning GBP and being employed by a GB company. so you are on their payroll and therefore liable for UK tax.

the uk tax office are really nice friendly people to speak to (have to speak to them frequently as I am an emoployer) - i would give them a call.
Ok that seems fair enough. Am I right in thinking there is an advantage in being paid insterling due to the higher income therefore when changed to NZ dollars I benefit?
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Old Jan 9th 2007, 8:55 am
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Default Re: Working in NZ paid in sterling? Need help!

Lucky you .... slap on the back for being so smart you'll have a ball here
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Old Jan 9th 2007, 8:56 am
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by sky View Post
Lucky you .... slap on the back for being so smart you'll have a ball here
Well i hope so, means that we can start our new life with some income to pay the bills while we setup and get new jobs!c
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Old Jan 9th 2007, 9:00 am
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by trigod View Post
Am I right in thinking there is an advantage in being paid insterling due to the higher income therefore when changed to NZ dollars I benefit?
Hugely yes. Lucky you. Although that is assuming you earn more than a NZ equivalent job of course, which is likely to be the case, although not necessarily.

Not sure about the tax situation though. You will not be resident in the UK so I would have thought, in contrast to Dreamfish, that you would be required to pay tax under the NZ system, if you are resident there. But this is just a guess.

So I think it comes down to where you are deemed resident for tax purposes, not the source of income. But you should check with those 'in the know'.

Additionally, I would send a message to 'The Bears' on this site since I'm pretty sure they have a Sterling income whilst residing in Australia so could be very helpful.

Good luck.
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Old Jan 9th 2007, 9:04 am
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Default Re: Working in NZ paid in sterling? Need help!

It would be an ideal situation even if paying NZ tax as the income I am on here may not be aceiveable in NZ for a little while so it will be a nice 'extra income' situation first. Ill take a look at the NZ tax sites unless someone on this ORacle of Information can offer a definitive answer.
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Old Jan 9th 2007, 9:05 am
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Default Re: Working in NZ paid in sterling? Need help!

Have a look on

www.ird.govt.nz

Seem to remember something about paying tax in UK and not NZ or vice versa
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Old Jan 9th 2007, 9:25 am
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by trigod View Post
Ok that seems fair enough. Am I right in thinking there is an advantage in being paid insterling due to the higher income therefore when changed to NZ dollars I benefit?
as long as the exchange rate is in your favour
dont think there is any legal way of getting one up on the tax man. there's always someone out there who wants a piece of you!! and if they dont do it this year, it'll be next.

if you leave savings accounts in the uk, the interest earned is taxable isnt it? so .... who do you pay the tax to?

maybe if you bring the income into NZ then it is taxed in NZ via your bank account.

interesting one. i think i would rather pay my tax at source, than at the end of the year in a tax return.
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Old Jan 9th 2007, 11:44 am
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by dreamfish View Post
if you leave savings accounts in the uk, the interest earned is taxable isnt it? so .... who do you pay the tax to?
Is this still the case if you are not resident though? I'm not sure but I think you have to fill in a form informing them you are not resident in the UK for tax purposes, the interest is then paid gross and you then have to declare it on your NZ tax return. But maybe they still take the tax at source?

Someone must know the answer to this - Apple? Bears? Hubbard? Anyone?
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Old Jan 9th 2007, 3:22 pm
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by uk+kiwi View Post
Is this still the case if you are not resident though? I'm not sure but I think you have to fill in a form informing them you are not resident in the UK for tax purposes, the interest is then paid gross and you then have to declare it on your NZ tax return. But maybe they still take the tax at source?

Someone must know the answer to this - Apple? Bears? Hubbard? Anyone?
No idea about the income tax situation, but you might also want to find out how much money you can transfer over without incurring penalties. I believe my parents can only give GBP3,000 to another person before having to pay tax on it, which seems absurd. But then they always do things very much upfront and legal...

Easiest way might be to just use a credit card associated with the account the money is going in to. Just musing.
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Old Jan 9th 2007, 4:00 pm
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Default Re: Working in NZ paid in sterling? Need help!

Easiest way might be to just use a credit card associated with the account the money is going in to. Just musing. [/quote]

Nationwide don't charge for overseas transactions on their Flexaccount, including drawing cash, if you're thinking about following Maz's suggestion ( which is a very good one!! )
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Old Jan 9th 2007, 4:03 pm
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by kev&sarah View Post
Easiest way might be to just use a credit card associated with the account the money is going in to. Just musing.
Nationwide don't charge for overseas transactions on their Flexaccount, including drawing cash, if you're thinking about following Maz's suggestion ( which is a very good one!! )[/QUOTE]
post office dont charge commission on drawing cash out in another currency either. good rates too.
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Old Jan 9th 2007, 4:04 pm
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by kev&sarah View Post
Easiest way might be to just use a credit card associated with the account the money is going in to. Just musing.
Nationwide don't charge for overseas transactions on their Flexaccount, including drawing cash, if you're thinking about following Maz's suggestion ( which is a very good one!! )[/QUOTE]

Ohh very cheeky, me thinks I have to think a little more laterally on this one!
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Old Jan 9th 2007, 4:12 pm
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Default Re: Working in NZ paid in sterling? Need help!

Originally Posted by trigod View Post
Ohh very cheeky, me thinks I have to think a little more laterally on this one!
Do bear in mind that whoever sends your money over may well not charge a flat fee or percentage commission, but you'll get a crap exchange rate instead. They're still going to make money off you somehow.
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