IR3 NZ Tax returns for new arrivals

[Duncan74]

So it seems that you need to fill in an IR3 form at the end of your first tax year (April-March).

Does anyone know if this means that the tax bands are pro-rata or if it's for the tax year regardless of when you arrived?

Ie as I started work on 17 May last year, should my lower brackets be reduced by 10.5/12 and so I should have been paying more in the upper band?

My tax should be pretty simple, single job, no other income, tax on interest taken by bank. But jsut wondering if there are any other catches?

[ralf-nz]

So it seems that you need to fill in an IR3 form at the end of your first tax year (April-March).

Does anyone know if this means that the tax bands are pro-rata or if it's for the tax year regardless of when you arrived?

Ie as I started work on 17 May last year, should my lower brackets be reduced by 10.5/12 and so I should have been paying more in the upper band?

My tax should be pretty simple, single job, no other income, tax on interest taken by bank. But jsut wondering if there are any other catches?

http://www.ird.govt.nz/how-to/taxrat...etaxrates.html gives an overview which rate applies in which period.


Catch 1: There might be discrepancies between the records kept by IRD and the summary provided by your company.
Catch 2: The tax deducted and transferred by your employer might not be in strict accordance with the periods as per above link.

[amy71]

I started work last tax year on the 8/2/2010. Filed in my IR3 with a total income of 1.75 months of the tax year 2011. As PAYE deduction % is calculated base on an annual income, I over paid and got a refund 4 days after filing in the IR3.

Hope it helps.

Amy

[Duncan74]

Cheers Ralf, but the queastion I had is that do I get the $14k at 12.54%, or is it only 10.5/12 x $14k, ie $12,250 before I then start paying the higher rate?

[Duncan74]

Thaks Amy.

I'd stated my post and then got distracted before hitting send, so hadn't seen your post when I replied above. Seemed to answer that exact point.

[amy71]

Glad to be of service.

[norma]

If you have a summary of earnings from the IRD or and end of year payslip from your employer, you can plug the details into the IRD's online calculator. It will tell you straight away if you owe tax or will be due a refund. You're more likely to be due a refund if you have not worked the full tax year.

http://www.ird.govt.nz/calculators/t...ml?id=homepage

[ralf-nz]

If you have a summary of earnings from the IRD or and end of year payslip from your employer.

As mentioned before I only can advise to check the figures stated on this different documentation!

[rupicola]

And I recently found out that it's an obligation to file an IR3 if you have lived and worked in another country during the tax period. I worked and lived in The Netherlands up until 31 December 2010, did not work in NZ before 31 March 2011, but still have to file my IR3 (and request the necessary form).

If you don't work in government, I don't expect them to be that strict about it, but it's nice to know.

[Duncan74]

3 questions for anyone that's been through this.

1st) Where do I find the exchange rate for GBP to NZ$ to use for the overseas income?
2nd) Tax has been taken off my interest by the bank (it's only about $10!) but that doesn't show on the IRD summary. Why's that?
3rd) I've not quite got round to claiming the tax back on my UK income from before I left. As it was in May then I'd not reached my personal allowance limit ($7k), so should get all of the tax back I think. So what do I put on the NZ form? Technically I've earnt and paid tax and have the P45 to prove it. But then I also intend to claim that tax back so where does that leave me? To be absolutely clear, then I want to fill the form in correctly, pay my dues, not double pay and not do any tax avoidance / playing of system. I just want to do everything correctly.
Thanks for any reponses to one or all of the above.