Tax Codes

[Cardiff Irons]

Sorry if already done. Gil starts her job tomorrow and we're just wondering how she goes about answering the questions for her tax code. She had some income from our business in the UK before we came over to NZ. Do we include that when answering the questions on the from about income received to date?

Is it as simple as doing a UK tax return for the UK stuff and a NZ one for the NZ stuff? Or is it a bit more complicated when you arrive in NZ part way through the year.

Be most grateful for any advice.

Cheers


Steve

[Sam B]

I was struggling with this one, as I have income from the UK (rental). But on the form that you fill in to get a tax number, it says in the notes on the back that you can claim to be exempt from paying tax on an income from abroad for the first 18 months or something, doesn't it? So I went for tax code M. Please let me know, anybody, if I'm wrong.

Good luck tomorrow Gil!

[Singel]

So I went for tax code M.

For salary/wage earner, this is correct

Good Luck with the new job, Gil

[Super_BQ]

I can't speak for UK but in Canada the tax obligation is based on the time of residency and non-residency.

In a calendar year (Jan - Dec) if I was working part way in Canada, I would have to pay tax on the income to UP TO the day you hop on the plane. The non-residency form filled specifiies the date you will depart Canada (hence non-residency status in Canada). Any income earned AFTER the departure will have to be shown on the NZ IRD tax return. However, earned income in Canada requires a tax return to Canada regardless if non-resident or resident. The 1st obligation for that income would be to Canada but still has to be shown on the NZ IRD form.

There is no double taxing as each form has a section for "foreign tax credit"

Again, i can't speak for UK tax laws.

BQ