There are many benefits to working as a contractor — it can pay better than doing a similar salaried job and be more flexible. But there are hidden costs to think about, too. It’s a common mistake to assume what you’ll earn in a year simply by looking at your contract rate, eg $75 […]
If you regularly sell goods online, including on auction sites like Trade Me, you are “in trade”. This means you have the same tax obligations as any other business — income tax and possibly GST. And you must also follow consumer laws, eg the Consumer Guarantees Act and product safety rules. Frequency is key If […]
All self-employed people can claim business expenses, contractors and sole traders included. If you work from home you can claim some household expenses, as well. Make sure you’re not missing a trick at tax time — find out what counts as an expense. What counts as an expense The more expenses you can claim, the […]
Being innovative is one of our key values at KGA, and we love the flexibility and service Tax Management New Zealand offers. Who is Tax Management New Zealand, and what do they do? TMNZ is New Zealand’s leading tax payment intermediary. The service they provide is called Tax-pooling – where taxpayers pay into the tax […]
Driving is about to get cheaper. From 1 July the average Motor Vehicle levy will fall by 12.5%. This means petrol will get a little cheaper too. You pay the Motor Vehicle levy in two different ways: petrol at the pump as part of your vehicle license (rego) fee. Paying levies on petrol and diesel Petrol […]
Most people with a disability or health condition don’t need anything extra to do their jobs. For those who do, grants and services can help employers cater for their needs. Finding and keeping skilled staff can be a challenge for many small businesses. But if you exclude disabled people when hiring, you are turning your […]
If you do research and development (R&D) work, claiming a special tax credit of up to $224,000 this year could ease cash flow problems and hasten your product to market. What is it? The R&D loss tax credit is designed to help New Zealand’s most innovative businesses when they may be struggling with cash flow […]
ACC are reducing the Work levy rate from 1 April 2017. Whether you’re an employer or self-employed – your Work levy will go down by an average 10% over the next two years, compared with 2016/17 rates. Exactly how much will depend on your industry and classification unit and how much you earn, so it […]
An Inland Revenue audit looks at your financial affairs to make sure you’ve paid the right amount of tax and complied with tax laws. It could be a simple check of your GST registration or a full examination of all your business and personal records. Inland Revenue can audit any business. It uses a range […]
On 1 May 2015 section 10(d) of the Companies Act 1993 was amended to require all companies to have one or more directors, of whom at least one must either: live in New Zealand; or live in an enforcement country and be a director of a company that is registered (except as the equivalent of […]
It’s important to understand how employees and contractors differ because it affects the way you treat them. The main difference is employees work for you, while contractors work for themselves. Other differences include: Employees have employment agreements with your business, while contractors are free to work for anyone. You pay PAYE and KiwiSaver on behalf […]
We have recently received advice from IRD confirming that they are continuing to focus on undeclared cash in the construction sector. IRD are letting Tax agents know they are going to write to some construction clients again about it. They are reminding them of their obligation to declare all their income, including cash jobs – […]
