Career Change For Me

[Moi]

Have to keep it schtum for now. It'll start a new thread when you find out what it is.

I know! I know!


He's off to do his Masters with the thesis on "motorcycle dynamics"...


Eventually it'll be Dr Rastuscat

[Bald Eagle]

Well good luck with the new venture RC.
I perfed in 91 been a corporate wage slave since. Until yesterday when we sold the house in Welly and moving to wangavegas for retirement. Will see how that pans out

Sent from my Redmi Note 4X using Tapatalk

[rastuscat]

Yeah the injury thing is a major, even I little thing like a dislocated toe at martial arts club, hobbling around on a job just doesn't look professional.... Now I have over 20 unused sick days, my work ethic means I turn up unless I'm literally dying lol....

Indeed. When I left the Police I had over 200 unused sick days. Some of us aren't sick bay rangers.

Those days just disappeared in the dust when I left, and it left me wondering if I should have used a few of them up in the same unethical way a lot of people do.

That's the problem with being honest. You are honest.

[Moi]

Indeed. When I left the Police I had over 200 unused sick days. Some of us aren't sick bay rangers.

Those days just disappeared in the dust when I left, and it left me wondering if I should have used a few of them up in the same unethical way a lot of people do.

That's the problem with being honest. You are honest.

When I retired after 42 years, four days before I turned 60, in education I had enough sick leave to have had a year off "sick"... once teachers had a term off then retired. But I thought a year... that's pushing it a bit! Shame we couldn't get a credit for it...

[Coldrider]

So Cassina isn't Dan taking the piss, I need to get out more.

[Cosmik de Bris]

Indeed. When I left the Police I had over 200 unused sick days. Some of us aren't sick bay rangers.

Those days just disappeared in the dust when I left, and it left me wondering if I should have used a few of them up in the same unethical way a lot of people do.

That's the problem with being honest. You are honest.

My old man told me to never trust a person who tells you how honest they are; that's why I've never bought a car from Honest Joe's car yard.

Cheers

[pritch]

Yup, I was offered some sage advice many years ago. Never turn what you love into a job, you will most likely just be left with a job you don't like.

Or, if you turn your hobby into a paying job, you need to find a new hobby.

[nzspokes]

But dont you claim depreciation cost of maintenance and insurance? Big perks I would have thought.

You have no idea about a business either.

[rastuscat]

But dont you claim depreciation cost of maintenance and insurance? Big perks I would have thought.

Its significantly more complex than that.

[rastuscat]

Did you not hire an accountant?

Yes. That's the problem. Each time I talk to the accountant to try to understand an issue I get invoiced for the call.

Basically I just want to go to work, do what I'm paid to do, and not have to trouble myself with ACC levies, GST, provisional tax, depreciation etc.

For me, the benefits of being self emplpyed are easily outweighed by these issues.

It's just my call. You make yours based on your assessment of your situation.

[Voltaire]

But dont you claim depreciation cost of maintenance and insurance? Big perks I would have thought.

Clearly no understanding of what a "perk" is either.

[Viking01]

Yes. That's the problem. Each time I talk to the accountant to try to understand an issue I get invoiced for the call.

Basically I just want to go to work, do what I'm paid to do, and not have to trouble myself with ACC levies, GST, provisional tax, depreciation etc.

For me, the benefits of being self emplpyed are easily outweighed by these issues.

It's just my call. You make yours based on your assessment of your situation.

Rastus,
It's been interesting reading this thread, and your comments along the way.

I get the feeling that there are two aspects about being self employed that
might have been bothering you:

a. charging an hourly or daily rate that was sufficient to compensate you
for risk of reduced continuity of work, plus annual and sick leave provision.
b. administration tasks that go with being self employed.


Background
I've been working as a self employed contractor in the IT industry. And I use
an accountant (she is very good and also well priced). I've also been reasonably
fortunate to have had almost full employment the last 20 years since starting
contracting.


1. Charge-Out

If your annual number of days of employment or your charge-out rate is not
sufficient to provide you a reasonable level of income - plus compensate you
for some annual and sick leave as well, then it will always be a struggle to
justify the decision to go solo. And not do a permanent role instead.

2. Administration

I understand what you say re doing returns for ACC, GST, PAYE or Prov Tax,
but it doesn't have to be onerous. I'm definitely not criticising your choice,
but it can be as simple as setting up a few spreadsheets, using a banking
software product for expenses, and doing the occasional return.

To give you an example: Registered company with a single employee

Do your inital assessment of business viability (e.g. cash flow in/out), and
decide on the likely mode of operation (e.g. limited company; sole trader).

Then go have a face-to-face discussion with your accountant, and agree on
the structure that best suits you. Any decent accountant should help you
through this phase. Should be a one-off cost up-front.

Register the company if required (see Companies Office website online).

a. Set up separate bank accounts for the business (putting aside a GST and PAYE
provision each payment cycle, and making tax payment via your bank web interface).
b. ACC - 2 returns per year (an initial annual ACC assessment plus a wash-up).
c. GST - Either 2 or 6 returns per year (lodge online via IRD MyIR interface).
d. PAYE or Prov Tax - Choice of paying periodic Prov Tax, or say monthly PAYE.
Lodge tax return online and also make physical tax payment.
e. Company Registration - If choose to setup your own company - Pay fee once a year.
f. Recording Company income and expenses - Via spreadsheets or a software banking
product.
g. Pay suppliers when applicable (especially the accountant's bill .... 8-)
h. Annual statement for claiming expenses associated with "use of home premises".

I've ignored FBT and KiwiSaver. Might not be applicable in your case.

If I've forgotten an item, some-one else is sure to pipe up and mention it.


I choose to use an accountant, and for the following:

a. Initial advice on GST exemptions the business is entitled to (claim via GST Return).
b. Making sure that I have prepared and sent in all tax returns when they were due.
c. Advice on new asset purchases for the business (if needed).
d. Apportioning tax between me and the business at end of financial year, plus doing
the Annual Tax Returns (for me and the business).

And that's about it.

It might look a little daunting, but once you get into the rhythm, the admin effort
is really quite small.

Best of luck with whatever you decide.

Cheers,
Viking

[TheDemonLord]

Rastus,

Plus, if that advise doesn't work - you can always sail your longboat to Europe and pillage a few monasteries...

[Daffyd]

No its not my assessment of my situation but rather what I have heard from others that have been self employed. With some occupations you would qualify for more tax breaks than others I guess. I have a friend in business who gets little or nothing in the way of tax breaks but he has also not SOUGHT the ADVICE of an accountant either.

There, fixed that for you. You're welcome!

[george formby]

Plus, if that advise doesn't work - you can always sail your longboat to Europe and pillage a few monasteries...

No longer much of an earner I'm afraid, most of them charge an entry fee now and are relic-less.. Pillaging Ladbrokes would be much betterer. Then again, I've seen Snatch so maybe not.