IR35 Living Abroad

[parttimeworker]

1st time posting so go easy.

I moved to NZ in September 2016 and carried on working for an existing customer through my LTD until April 2017, when things got tricky. My contract was found inside IR35 by the client despite the HMRCs own tool deciding otherwise, but I digress. At this point I started having PAYE NIC and ENIC deducted at source and my take-home plummeted but because I have limited options in the UK I have carried on working in the same way.

My main question is, now I am in NZ should I have NIC and importantly ENIC deducted at source or should I, as I think, be paying Social security in NZ and be able to claim back all the ENIC and NIC paid in the UK since April 2017. NZ have a bi-lateral agreement for Social security?

I don't really have any quarrel with PAYE other than the determination of IR35 is a joke.

[WTFH]

Questions:
1. Are you still using your UK limited company?
2. Are you and your company registered to an address in the UK?

[TheFaQQer]

Purely for reference, who is the public sector client that allows you to work from the other side of the world? The ones I've dealt with were reluctant to allow working from home in the UK!

[BlasterBates]

If you're in New Zealand you shouldn't be paying any tax or NI in the UK. Yes you should be able to claim it back, but I would advise contacting an accountant. If it is in the current tax year it will be easy, in previous years it gets more difficult as you have accepted your tax return. you need good arguments. You should be declaring this in New Zealand. If they demand tax and don't credit UK tax at that point your tax in the UK should be refundable because of the Double Tax Agreement.

[parttimeworker]

Purely for reference, who is the public sector client that allows you to work from the other side of the world? The ones I've dealt with were reluctant to allow working from home in the UK!

A local government. I have a long relationship with a senior person there.

[parttimeworker]

Questions:
1. Are you still using your UK limited company?
2. Are you and your company registered to an address in the UK?

I am not using my limited any longer. I am not registered to any address in the U.K. HMRC have been informed.

[parttimeworker]

If you're in New Zealand you shouldn't be paying any tax or NI in the UK. Yes you should be able to claim it back, but I would advise contacting an accountant. If it is in the current tax year it will be easy, in previous years it gets more difficult as you have accepted your tax return. you need good arguments. You should be declaring this in New Zealand. If they demand tax and don't credit UK tax at that point your tax in the UK should be refundable because of the Double Tax Agreement.

Thanks BlasterBates. You got me thinking there. I originally thought that I should be taxed in the UK, as the organisation is in the U.K and I am logging into their servers etc but what you're saying is the physical location the work is carried out in is the trump card here. I was in the process if finishing my self assessment. I have a feeling this is going to get very complicated...

[tarbera]

I have a feeling this is going to get very complicated

Thanks BlasterBates. You got me thinking there. I originally thought that I should be taxed in the UK, as the organisation is in the U.K and I am logging into their servers etc but what you're saying is the physical location the work is carried out in is the trump card here. I was in the process if finishing my self assessment. I have a feeling this is going to get very complicated...

I have a feeling this is going to get very complicated - Indeed

If you were living in Germany for example and doing the same thing, The police would be round at your door to cart you away to jail by now.