4

I was in New Zealand on a working holiday visa in early 2017 for about nine weeks - across the last few weeks I was there, I did some remote software development work for a few different clients, all located outside of New Zealand. I earnt roughly ~$800 USD gross in total for this work.

I live in the United Kingdom and continued doing freelance software development work upon returning to the UK in May as a self-employed contractor. I am having to wind up my software development work and need to sort out what tax I need to set aside for the end of the financial year.

Do I need to pay income tax on the ~$800 USD to New Zealand, or would it count as part of my UK income?

There is a double tax agreement between New Zealand and the United Kingdom, and New Zealand's IRD website states for independent contractors:

most DTAs may exempt you from income tax in New Zealand if you are in New Zealand for less than 183 days and you do not have a fixed base or permanent establishment in New Zealand.

I was only in New Zealand for ~70 days with no permanent base, so I think I am meant to pay tax only to the UK - does this sound reasonable?

James Hiew
  • 143
  • 3

1 Answers1

1

As @Fattie says in comments, you should declare this as UK income.

Even if the IRD at some point decides you should have paid NZ tax on it (which seems extraordinarily unlikely), you can deduct what you paid Inland Revenue from any tax you owe the IRD.

Rupert Morrish
  • 7,576
  • 4
  • 27
  • 41