New Tax Codes for Contractors

From 1 April 2017, if you are hiring any contractors that are required to have withholding tax deducted, or are a contractor yourself the IRD have issued a new form to be filled in from April 2017 onwards. Contractors providing labour hire services, such as Recruitment Agency or IT Contractors, are required to have these deductions made no matter the structure their business activity is under. Pr... More

Topics: Income Tax Business Tax Compliance Withholding Tax Inland Revenue Contractors Links Schedular Payments Starting Business

Posted 31/03/2017

What is Provisional Tax?

When you first go into business you don't actually have to pay any income tax to IRD for quite some time (unless you are going to be earning over $180K in profit for your first year - then different rules apply). So say your first financial year will end at the 31 March 2015 - then your financial accounts and returns are prepared and any income tax payable for that year is due to Inland Revenue b... More

Topics: Income Tax Terminology Provisional Tax Starting Business

Posted 23/09/2014 – Updated 30/09/2014

How Do I Become Self Employed?

New Zealand is one of the easiest countries in which to start a business. It's really as simple as finding something which will generate profit and going for it - well almost. Here's a quick guide for people who are currently in employment and are curious about becoming self-employed or those who are looking for work and perhaps considering creating their own opportunities. This is more aimed for ... More

Topics: GST Business Record Keeping Contractors Guides Starting Business

Posted 9/11/2012

Just Started As A Contractor - How Much Should I Save For Tax?

Question: I have just started work and my employer has informed me I am responsible for paying my own tax. Does this require me to put away 20% of my wages? What are my tax responsibilities? Answer: In this case you're effectively a self employed contractor - not an employee, so this means you'll need to put aside some of your gross income to pay your tax later. It's a good idea to keep this some... More

Topics: Income Tax Business Contractors Guides Starting Business

Posted 18/12/2008 – Updated 23/09/2014