Frequently asked questions

Q. If I leave New Zealand, do I still have to pay tax here?

A. You have to pay on income sourced from New Zealand and file a non-resident income tax return.

Q. I have left the UK, do I still have to worry about tax in the UK?

A. If you retain your domicile status in the UK you will be subject to Inheritance Tax on your worldwide assets. If you have been a non-resident for five years you will no longer be liable for Capital Gains Tax on assets held in the UK.

Q. When do I have to register for GST?

A. When your business is expected to turnover $60,000 or more a year.

Q. What is provisional tax?

A. Provisional tax is tax paid in advance generally in 3 installments, or 2 installments if you file your GST on a 6 monthly basis.

Q. What is my domicile?

A. A person's domicile links them to a particular place acquired at birth or by choice. To acquire domicile by choice, you have to have a physical presence in the territory and have an intention to remain there permanently. 

Q. Why do I need to worry about my domicile?

A. From a UK perspective if a person is domiciled in the UK then he/she is subject to inheritance tax on worldwide assets. It is not uncommon for someone to have lived away from the UK for many years but HM Revenue & Customs still consider that person to be domiciled in the UK.                                                            

Q. What is the remittance basis?

A. Expat Kiwis can be resident in the UK but not domiciled. If they are sourcing income from overseas this can be taxed in the UK on the arising basis or the remittance basis. Remittance basis means sums actually brought into the UK. There can be horrendous tax implications for expat Kiwis not doing tax planning and getting caught with what is called "The Charge". Depending on time spent in the UK this is a £30,000 or £50,000 charge regardless of how much money you have been earning overseas.

Q. Do I have to register for VAT if I export to the UK?

A. You will need to register as a Non Established Taxable Person because you are supplying a product into the UK from a non EU country. The normal £81,000 threshold doesn't apply and you will need to register. Your sales will be zero rated in your NZ GST return.