A question about tax and all things contractor

[The End]

As someone who is a self-employed contractor, how complicated is it to file my taxes?

Assuming I am someone who has never done it before, is it straight forward or should I get an accountant to sort it?

I understand that as a contractor, I am eligible for tax deductions - I've been saving my petrol receipts per the advice of a colleague, however I am not sure if what they said is right - it sounds too good to be true. They mentioned I can get 15% of my fuel bill off my end of year tax dollars owed to IRD, is this true?

[pete376403]

You should really talk to an accountant - it's too easy to get tax wrong and when you do IRD is merciless. (Been there, done that, got the bill)
Accounts fees, like virtually all business expenses, are deductible.

[The End]

You should really talk to an accountant - it's too easy to get tax wrong and when you do IRD is merciless. (Been there, done that, got the bill)

Again, someone who has never even spoken to an accountant. Is it likely to be very expensive to get them to go over my income and sort out tax?

[nzspokes]

Again, someone who has never even spoken to an accountant. Is it likely to be very expensive to get them to go over my income and sort out tax?

Its much cheaper than getting caught out and getting a $15,000 bill that they want paid at the end of the week. I know somebody that got caught that way.

Yes accountants cost, as do tax agents. But you can claim that cost back. Get good advice from the start.

[JimO]

Again, someone who has never even spoken to an accountant. Is it likely to be very expensive to get them to go over my income and sort out tax?

mine costs a couple of k a year but they do my gst and rental properties as well

[The End]

Its much cheaper than getting caught out and getting a $15,000 bill that they want paid at the end of the week. I know somebody that got caught that way.

Yes accountants cost, as do tax agents. But you can claim that cost back. Get good advice from the start.

Ha my earnings wouldn't even be near $15,000... I just don't want to go to an accountant and realize I could've done it myself and not had to pay $100/hour for 10 hours work! But hey, I have no idea what the cost/time required will be anyway.

[nzspokes]

Ha my earnings wouldn't even be near $15,000... I just don't want to go to an accountant and realize I could've done it myself and not had to pay $100/hour for 10 hours work! But hey, I have no idea what the cost/time required will be anyway.

Try ringing one up for a quote. Or even cheaper a tax agent. And just because your earnings wont be 15k, dont think it wont turn to shit if you get it wrong. You have to start it out right.

I had an accountant and it was still a struggle to keep up with it.

[Akzle]

whats YOUR time worth, 10 hours for a hundy? I even pay hookers better than that, and yes, for 10 hours.

Fuck petrol receipts. Shits for gaylords. (get a fuel account) Did you keep a logbook? Is it work vehicle? FBT?
Youre better using a private vehicle and claiming by kilometer, liek 77c per each yo.
But then cant claim rego fees etc. So just dont pay them and youre ahead.

The lord giveth....
And the IRD taketh away.
(fuck your white jewciety shit)

[The End]

whats YOUR time worth, 10 hours for a hundy? I even pay hookers better than that, and yes, for 10 hours.

Fuck petrol receipts. Shits for gaylords. (get a fuel account) Did you keep a logbook? Is it work vehicle? FBT?
Youre better using a private vehicle and claiming by kilometer, liek 77c per each yo.
But then cant claim rego fees etc. So just dont pay them and youre ahead.

The lord giveth....
And the IRD taketh away.
(fuck your white jewciety shit)

I am using my Hornet for commuting to/from work, as well as work errands. However this also gets personal use too.

As I said above, I am completely new to all of this so may have been doing things wrong already, or have the wrong impression of how things work...

[Akzle]

per the advice of a colleague,


it sounds too good to be true. They mentioned I can get 15% of my fuel bill off my end of year tax dollars owed to IRD, is this true?

unless that colleague's last name is NZICA MBAcc, tell him thanks but no.

But essentially yes. You may also claim depreciation at about 30% and shit if its a business asset...

[nzspokes]

or have the wrong impression of how things work...

You do by the sounds. Get advice.

Also, is the Hornet insured as a work vehicle? If not then you are in for a shock if you have a crash. Dont know if it still applys but my car and vans had to have my business name and address on them. Yes you need log books. Receipt books. etc etc.

Oh and save a good chunk of your earnings for the first tax bill, they are normally a good shock to the system. My accountant told me save 30%. That worked out well.

[Akzle]

I am using my Hornet for commuting to/from work, as well as work errands. However this also gets personal use too.

As I said above, I am completely new to all of this so may have been doing things wrong already, or have the wrong impression of how things work...

to/from work is not typically claimable.
Bikes arent eligible for the 77c, i havent heard of anyone having a bike as a business vehicle but its possible.
You need to calculate the % work v home use and may claim the gst back on that %...
Assuming youre gst registered...?

[The End]

You do by the sounds. Get advice.

Also, is the Hornet insured as a work vehicle? If not then you are in for a shock if you have a crash. Dont know if it still applys but my car and vans had to have my business name and address on them. Yes you need log books. Receipt books. etc etc.

Oh and save a good chunk of your earnings for the first tax bill, they are normally a good shock to the system. My accountant told me save 30%. That worked out well.

Ouch....time to find an accountant then.

to/from work is not typically claimable.
Bikes arent eligible for the 77c, i havent heard of anyone having a bike as a business vehicle but its possible.
You need to calculate the % work v home use and may claim the gst back on that %...
Assuming youre gst registered...?

I am not GST registered as I will be earning <60k (the threshold)

[Akzle]

Ouch....time to find an accountant then.

I am not GST registered as I will be earning <60k (the threshold)

if you are not gst registered you cannot claim back gst.

Also sounds like ird might deem you an employee, despite your feelings about it.

Time to find an accountant alright.

[R650R]

You could Prob do it yourself if confident with accuracy and filling in forms.
But I happily pay my accountant $250 to do it and he does it well.
I'm always blown away at what losses and depreciation can be claimed.

Btw I keep a income and expenses cash book/ledger reconciled monthly against bank statements and do my own gst returns.

You only need register and charge gst if turnover above 60,000. But it can be beneficial if you expect to later and are buying some high value tools to start up...