Foreign Income

Hi, During 23/24 I worked in NZ for 3 months where I was taxed. How do I account for this on my self assessment? I am struggling to see via the DTR whether I need to declare the income and then claim tax relief or if I do not need to declare the NZ income on my self assessment given I have already paid income tax on it?

Hi,

You can see guidance here:

https://www.gov.uk/tax-foreign-income/paying-tax

Thank you.

Hi, I have reviewed the guidance but am not finding it particularly clear? I have tried to look at the DTR with NZ, but again I’m still not clear on whether you get a foreign tax credit on employment income or whether the tax collected in NZ means it will not be taxed in the UK? Thanks

Hi, I have reviewed the guidance but am not finding it particularly clear? I have tried to look at the DTR with NZ, but again I’m still not clear on whether you get a foreign tax credit on employment income or whether the tax collected in NZ means it will not be taxed in the UK? Thanks

Hi dl0612,
Please have a look at article 16 of the tax treaty with New Zealand.
It advises that if you were resident in New Zealand while undertaking the employed work, you are taxable on it in New Zealand.
You would need to check with the New Zealand tax authorities to confirm if you have overpaid tax there.
In a Self Asssessment tax return, you would show the employment income converted to pounds sterling on supplementary page SA102.
Once you know the correct amount of tax that you have to pay in New Zealand, you would declare the employment income and tax deducted in the foreign sections of the tax return (SA106) and claim a Foreign Tax Credit.
Thank you.