Working For Families Tax Credits

[jasonelsa56]

Hi All

Not posted for a while but things are (fingers crossed) starting to move forward. Have a job offer, 3 months after initial interview. EOI selected 9th April but still waiting for the ITA . (Hopefully should be quicker now Job confirmed).

The question i have is regarding working for family tax credits. My initail starting salary is $75,000, coupled with the inability to sell our house in the currenty climate we are concered that it is going to to be a step too far to afford to live in NZ as well as paying rent. The house in the UK should cover the mortage and associated letting and management fees on only 10 letting months a year, but it looks like we will need to find $700-$800 per week for a rental property in Auckland.

On my calculations this will leave us appox. $400 per month short of just breaking even, taking account of food, bills, cars etc.

I noticed on the NZ govenment site that like the uk they have family tax credits. Can anyone tell me if a newly arrive immigrant with PR can claim for them. Using thier online calculator we would get an estimated $180 per week (4 kids) which would put our finances back in the black.

Any info would be much appreciated.

Regards

J

[snailandthewhale]

Yes, you're entitled to claim if you have PR. You just need to get IRD numbers for everyone ( children too) and you can apply online I think.
Regards

[StevieD]

Ditto to that, apply for your IRD nos while you in UK, it is simple enough. Good luck

[James 1077]

Although you can't get them if you take advantage of the overseas passive income exemption for new migrants.

So you'll need to work out whether you are better off with Family Tax Credits but having any profits on your UK rental / interest in offshore accounts etc taxed in NZ rather than keeping those profits tax free but not get Family Tax Credits.

[dilanium]

You are no longer allowed to apply for an IRD while overseas according to an email I received from them. You have to apply once you get into NZ.

[dusk]

you might also be able to find rental properties cheaper than the rate you suggested - depends what you're looking for and where....

[dharder]

I noticed on the NZ govenment site that like the uk they have family tax credits. Can anyone tell me if a newly arrive immigrant with PR can claim for them. Using thier online calculator we would get an estimated $180 per week (4 kids) which would put our finances back in the black.

I don't quite understand how they work, as lots of people here on the forum get it, but the IRD website says you have to have been a resident for a year. So apply by all means, but they might, if you call them, tell you a different story each time you call them (but you'll be familiar with that from the UK Tax credit people).

As James points out, you have to consider your overseas income. We did some calculations, and for us, it was better to not make use of the tax exemption but claim for tax credit here. But everyone's situation is of course different.

$180 seems a lot, though, I think I would probably assume less than that and then be pleasantly surprised if it is more, if you know what I mean.

Good luck,

Daniela