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Where Taxpayers and Advisers Meet

UK NZ Dta

POH
Posts:1
Joined:Fri Feb 24, 2017 10:58 pm
UK NZ Dta

Postby POH » Fri Feb 24, 2017 11:06 pm

Hi
I moved from UK to NZ (Aug 2015).

For tax yr 15-16 I was employed in UK for 5 months, and NZ for 7 months, making me an NZ tax resident for the year.

On completion of filing UK takes for 15/16 I then filed an IR3 in order that my UK income for the 5 months is open to claim for NZ tax. Obviously I declared to the NZ IRD the tax which I had paid in the UK to allow it to be given as credit under the DTA.

When giving my tax paid in the UK, I did not include any National Insurance paid. My question is "was I correct in not including NI as paid tax". Obviously if I did include NI I would be able to claim a higher credit and become less liable for NZ tax.

Thanks

Peter

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: UK NZ Dta

Postby AmanSood » Sat Feb 25, 2017 8:01 pm

You can't get a credit for UK NIC paid and also the credit for the UK taxes would be capped at the NZ tax rate. You may also have overpaid UK tax if you left the UK part way through the 2015/16 tax year so may be due a refund from HMRC.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: UK NZ Dta

Postby maths » Sat Feb 25, 2017 10:07 pm

For 15/16 it seems you will fall to be UK resident for the whole of the tax year.
You say you will also be NZ resident for the same tax year.

It is then necessary to resolve this dual residence under the UK/NZ DTA.

Resolution in favour of UK would mean that it is to the UK that you would need to look for DTA relief.
Resolution in favour of NZ would mean that it is to NZ that you would need to look for DTA relief.


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