Loubylou265

Hi,
Having told my boss in the UK of our plans to emigrate in the next couple of months, he has said that I can have a trial run of continuing to do my work once in NZ!

I'm a PA for a family investment firm and there's only me and the two directors. I do most of the day to day running of things, with my boss making final decisions on investments when necessary. 95% of my work is email based with the odd phonecall so it could quite possibly work out quite well.

I am noted on companies house as Company Secretary, which allows me to sign official documents etc and administer all the accounts.

Our business accountant in the UK said that the business wont be affected by my move, but that I will still be paid on PAYE just without the tax element.

Does anyone know how I will work this in NZ? Do I pay my tax monthly/ annually? Is it almost like I'm self employed and have to do a tax return?

Any advice would be gratefully received.

Thanks

Persephone

I know there has been the occasional thread on this but a search hasn't helped. Someone did this for a few years but doesn't tend to post now.

I believe that you would send in a tax return [IR3] at the end of the tax year and pay what's owed from this. You will probably be assessed for provisional tax after that as it's likely you'll owe >$2,500 if tax has not been deducted at source.
I am not an expert on this though so don't take my words as gospel! You could always speak to the IRD, they are very helpful.
P

Spacecake799

My husband does this but the other way round. He submits an invoice each month to an umbrella company they invoice NZ company. They pay the money and the umbrella company sorts out the tax/NI and pays my husband.
I don't see why you couldn't do the same sort of thing in NZ.
Good Luck

Loubylou265

Thanks Peeps,
I've tried contacting the IRD, but none of the numbers on their website seem to work when calling on my mobile from the UK?! And you can't seem to email them as everything is done online and I need an IRD number for that.

How soon do you get an IRD number? Is it quite easy to set up?

Might just wait till we get out there and discuss with IRD as soon as possible.

not long now........

Snap Shot

You get an IRD number by filing in the form on the IRD website. I had printed mine off the website and had it with me in NZ so I just had to fill it in, submit it to the Post Shop (Post Office) in NZ and my IRD number was given to me on the receipt right there and then.

Persephone

I found this thread which may help:
http://britishexpats.com/forum/new-z...any-nz-827952/

mickey_d

I did it for 4 years.
You don't have to set up as a company, as some say on the other thread.
The UK company sorted out me not paying tax in the UK. I just used to email my hours to them weekly & they paid me monthly directly into my bank account & emailed me a payslip.
Just then filled in an IR3 at the end of the financial year.
Keep track of any expenditures you may have to enable you to do your job as you can claim expenses.
Easy, no need for an accountant. If you have any problem/queries when filing an IR3, just speak to the IRD.

Loubylou265

That's great, thank you.

I have contacted an accountant and they wanted to charge me hundreds of dollars before they gave me advice and also said I'd have to look into corporation tax, which I know won't apply as it is simply me doing the admin in nz, all the business activities are in the UK.

I've printed off the forms to get my IRD number when I arrive.

One other question, I'm on a basic salary and get paid the same each month, but presume that what I receive into my account each month will depend on the exchange rate?

mickey_d

Yes, it will go up & down a bit.
Pity it's not $3 to the pound, I enjoyed that for a while!!

GoingIn2011

I'm working for a UK company from over here. They are paying me gross and I am sorting out the tax. Having paid $600 for advice, I am doing an IR56. That is, I am doing my own PAYE. I am now on the look for a cheap accountant to actually do this for me...

GoingIn2011

The accountant I spoke to did not tell me that they would charge me $600 for advice - they just sent me the bill. I assumed naively that it was just a casual email conversation.

Anyway, yes, on the exchange rate, you need to show the audit trail clearly, and yes the amount will depend on the rate at the time. You should transfer precisely what you get paid gross to here so that the audit trail is clear. Then you will do the tax on the $ amount that actually arrived here. I have been told that I need to do an IR56, to do my own PAYE, although I note that some of the advice on here is to just do a single IR3 tax return at the end of the year. I dont know which is more correct, but my company in the UK want me to do an IR56 so that is what I will be telling the NZ accountant to do. I think it may be because my UK company want to pay me pension contributions through Kiwisaver, and IR56 - I guess - is a good vehicle for doing this!?!

Thanks