[RedKev]

As the title suggests is there anyone here who operates as a sole trader or IT contractor?

I've a few questions...

[Carol]

As the title suggests is there anyone here who operates as a sole trader or IT contractor?

I've a few questions...


me!
:-)

but I've just started.....

[RedKev]

Me 2 :)

What's your expenses like? What do you plan to write off i.e. Mobile phone bill, home rent, food during the day?

I might seem greedy but it's all done back in Ireland. Actually at home we get a subsistance allowance so no receipts are needed for food/drink!

Also, are you planning on doing all your tax things yourself or you gonna have an accountant take care of it?

[Jo Jo]

I am, too, though I'm very new to it. I've appointed an accountant to do my tax.

[Angelonthemove]

My OH is doing his 2nd year IT contracting here ( 20 years in Europe) and although he can not claim anything as he works at the company office he still employs an accountant. We do our own 6 monthly GST return but Accountant works out tax payments. They have all changed recently as now you can pay for GST and tax on the same form.

I have just started my own business and found the forms totally confusing so will get the accountant to do mine as well. Worth it for peace of mind.

Most stuff is online and our bank not sure of others has tab for online paying of tax payments.

With an accountant you will be able to maximise any expenses incured if you are allowed.

[ulto]

Looking into this too but im looking into working on a WHV.
So at the end of the day i should be able to claim all my tax back at the end of the year! Right?

So there is no reason to be self-employed as ill be getting the tax back regardless!

Am i mad to think this is right? Ill be working come december/january for 12 months or so.

[KerryS]

Looking into this too but im looking into working on a WHV.
So at the end of the day i should be able to claim all my tax back at the end of the year! Right?

So there is no reason to be self-employed as ill be getting the tax back regardless!

Am i mad to think this is right? Ill be working come december/january for 12 months or so.

No - not right at all! Why on earth do you think you can claim back all your tax - a WHV doesn't mean you aren't required to pay taxes on the income you've earnt whilst here.

I'm a self-employed IT contractor, and have been for the last couple of years. I have an accountant to do my returns, as he knows all the rules and regulations about what is claimable and what isn't, and I can offset his costs as well.

[BaldyBeardyBloke]

I'm just starting as self employed IT contractor. I work from home (although currently between contracts - boo!).

I am employing an accountant to ensure that we get everthing in the right places - e.g. claiming percentage of power bills and mortgage interest as tax deductable and setting up as a company to have the opportunity to complete 'income splitting' where appropriate to minimise taxable income across the two of us if possible.

I don't think any of the basics are massively complex for a single earning person, but it is all time consuming and the paperwork need not be worried about with an accountant. Also, he will know about 'opportunities' that may not be outwardly obvious to me so I will expect him to cover his fees by saving me at least as much as he charges, therefore he becomes, effectively, free.

We have also set up a family trust that owns the house to keep it seperate from any company/personal assets, so he will look after the paperwork for that too.

[ulto]

No - not right at all! Why on earth do you think you can claim back all your tax - a WHV doesn't mean you aren't required to pay taxes on the income you've earnt whilst here.


Well maybe not all but most.
The tax year is april to march isnt it?
So because im not working a full tax year then i should be able to get majority of it back

Thats how it works in Ireland anyway. Got tax back when i was in the states and know loads of people in OZ who got tax back and we are taking a few grand of tax back here.

Still might look into the contracting thing. Is this a hard thing to do over there? Especially on a WHV?

[eternalkiwi]

If you do not work for a full tax year or if you have irregular income during the year you are likely to have a tax refund at tax time, though in most cases I would expect this would be no more than 10-20% of the tax you have paid and possibly less.

This is partly due to NZ not having a base tax free income threshold and most people travelling on a working Holiday visa being taxed on the current base tax rate of 19.5% so throughout the period you are working your tax rate would be correct.
(While the budget has introduced a new step at 12.5%, the net effect is not likely to change substantially).

Shawn

[ulto]

Thanks for the info.

So how hard or easy is it to set myself up as an IT contracter on a WHV?
Im looking at christchurch so would a company more or less likely to employ me as a contractor.

[RedKev]

Thanks for the info.

So how hard or easy is it to set myself up as an IT contracter on a WHV?
Im looking at christchurch so would a company more or less likely to employ me as a contractor.

I'm on a WHV and had no problems. I'm working in Wellington. I wasn't here for last summer but I reckon you should come here, if even for the 7s alone.

In relation to getting your tax back plenty of people have told me that they or someone they know got it back although they didn't give me any solid reasons/advice. When consulting an accountant never mentioned anything about this but she didn't know much about my visa status, just the type of work I was undertaking.