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Thread: Tax liability for contractor

  1. #1
    Join Date
    Jun 2019
    Location
    Uk
    Posts
    1

    Default Tax liability for contractor

    I have been offered a contract role in Auckland, which will last a year. I am based in the UK, so have always used a limited company setup for my contract roles, allowing me to take a salary and deduct my expenses.
    It seems there is no such option for contractors in NZ, as self-employed individuals are treated the same as employed persons for tax purposes. This means most of my day rate would be subject to a 33% tax charge, plus another 1.5% charge to cover medical insurance I believe.
    Does anyone know if there are alternatives, such as using an umbrella company? I would only be in New Zealand from 10/19 to 10/20 (so would straddle 2 tax years), surely there is some way to lower my tax liability?

  2. #2
    Join Date
    Jan 2012
    Location
    Takapuna
    Posts
    464

    Default

    Quote Originally Posted by philltee View Post
    I have been offered a contract role in Auckland, which will last a year. I am based in the UK, so have always used a limited company setup for my contract roles, allowing me to take a salary and deduct my expenses.
    It seems there is no such option for contractors in NZ, as self-employed individuals are treated the same as employed persons for tax purposes. This means most of my day rate would be subject to a 33% tax charge, plus another 1.5% charge to cover medical insurance I believe.
    Does anyone know if there are alternatives, such as using an umbrella company? I would only be in New Zealand from 10/19 to 10/20 (so would straddle 2 tax years), surely there is some way to lower my tax liability?
    Just to be clear, you are asking a predominantly NZ resident based community if there is a way you can “game” your taxes to not pay your fair share for the year while here and leave others with your tax debt?

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