A question about tax and all things contractor

[The End]

you're employed. sorry to say. you can't claim shit, except sick leave and holidays and shit.

I'm not. The contract I signed specifically stated I am a contractor, and I agreed to it.

I invoice my employer who pays me gross.

[Mom]

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?

If you are using your vehicle for business you must keep a log book for 3 months to determine the % of business use. If you don't you can only claim 25% of the costs. Go see an accountant mate. Most offer you an hour of free consultation, go pick some qualified brains.

[Akzle]

I'm not. The contract I signed specifically stated I am a contractor, and I agreed to it.

I invoice my employer who pays me gross.

as i think has already been said, if more than 80% of your income comes from one source, the IRD will deem the relationship as employer-ee regardless of your contract. you might want to wise up your employer and all.

now, more than ever, go and get an accountant before you find out just how far the IRD can get their arm up your ass.

If you are using your vehicle for business you must keep a log book for 3 months to determine the % of business use. If you don't you can only claim 25% of the costs. Go see an accountant mate. Most offer you an hour of free consultation, go pick some qualified brains.

that is one method, there are several other accepted ways about it.

[Akzle]

of course, you could try the biblical- freeman road
"a workman is worthy of his hire"
and operate under a contract for hire, and tell the government and IRD to fuck right off with their shit.
i will if you achieve this.

[Oscar]

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?

Have a look at Xero: https://www.xero.com/nz/accounting-software/

My bank account talks to Xero, it assembles the reports and such and then I get my accountant to do the heavy lifting.
If I really wanted too, I could probably do it without the Accountant, but it's always good to have a safety net.

[Oscar]

as i think has already been said, if more than 80% of your income comes from one source, the IRD will deem the relationship as employer-ee regardless of your contract. you might want to wise up your employer and all.

now, more than ever, go and get an accountant before you find out just how far the IRD can get their arm up your ass.



that is one method, there are several other accepted ways about it.

I see that you talk crap on every subject.

[Oscar]

First thing IRD will look at is "Does 80% of your revenue come from one source?".


I use several part time contractors, paying them appropriately. If I had to actually do the employer thing I'd simply shut the door, can't be fucked with the hassle.

That 80% rule is only one factor.
I'm a contractor and I get 99% of my income from one source.
It's more to do with what isn't paid than what is.

[Akzle]

I see that you talk crap on every subject.

That 80% rule is only one factor.
I'm a contractor and I get 99% of my income from one source.
It's more to do with what isn't paid than what is.

well please, enlighten us about this jewry...

[Ocean1]

That 80% rule is only one factor.
I'm a contractor and I get 99% of my income from one source.
It's more to do with what isn't paid than what is.

As did I a couple of years ago. Well, 85%. Big project.

And you're right, there's other considerations, but that 80% is the flag that attracts IRD attention. And believe it or not they can difficult to reason with.

[Oscar]

well please, enlighten us about this jewry...

Go and see an accountant, dickwad.

[Oscar]

As did I a couple of years ago. Well, 85%. Big project.

And you're right, there's other considerations, but that 80% is the flag that attracts IRD attention. And believe it or not they can difficult to reason with.

My situation doesn't attract attention because my contract is so different to the salaried equivalant.
No car, no park, no holiday pay, no perks, just a monthly invoice.

[Akzle]

Go and see an accountant, dickwad.

i did. we had sex.

i'm really interested in what you have to say...

[EmBe]

I think you'll be fine sorting it out by yourself if you read everything fully. As a contractor you'll have to fill in an IR3, like previous people have mentioned put aside tax as you go and be prepared for an ACC bill. You say you think your total contractor income will only be about $15k ? If you're working as an employee for other businesses keep ya payslip details handy as you'll likely have to include any PAYE and ACC payments when filling your tax form as a contractor.
As for claiming fuel and expenses i'm not sure you'll have much joy there - it's best to try and include that into the contractor fee that you're charging or include tool/transport/consumables as an extra on your invoices.
Good thing you're willing to ask questions cos the IRD are never willing to go easy on you if you get it wrong cocks
you can do it!!

[avgas]

i did. we had sex.
i'm really interested in what you have to say...

What was his name?
(Talk about being fucked by the tax man)

[Akzle]

What was his name?
(Talk about being fucked by the tax man)

...i dont even have a good comeback. I havent had coffee yet. Gaddamn.