Forum Home
PC World Chat
Thread ID: 124681	2012-05-12 11:08:00	Assistance starting PC build/supply/repair business	Tukapa (62)	PC World Chat

Post ID	Timestamp	Content	User
1274994	2012-05-14 22:10:00	Not if they are a small business or GST registered. They know they have to pay it, so why not try and claim it. Being able to claim $200-$300 back on a computer system for example makes it alot more affordable for some small businesses. There are ways around that.	mikebartnz (21)
1274995	2012-05-14 23:11:00	There are ways around that.legally?	Iantech (16386)
1274996	2012-05-14 23:38:00	legally? Yes I have given them a copy of my supplier GST invoice so they can claim the gst that has been charged.	mikebartnz (21)
1274997	2012-05-15 00:04:00	Fair call Mike. But if you are in business yourself, it wouldnt be the way to go as onselling an item for the same price you pay for it isnt the way to make a buck. Unless you are giving your client the suppliers invoice and then adding say 10% on top for yourself (which your client cant claim GST on).	Iantech (16386)
1274998	2012-05-15 00:11:00	Unless you are giving your client the suppliers invoice and then adding say 10% on top for yourself (which your client cant claim GST on). You've got it. There are many ways of skinning a cat. Years ago when GST came in I looked at it and for the extra hassel, extra accountancy fees and having money sitting around doing nothing it just wasn't worth it although with the increase in GST it is more tempting.	mikebartnz (21)
1274999	2012-05-15 09:12:00	It's interesting to see everyone's views on GST. I thought about it long and hard before registering for GST - I thought the pros outweighed the cons. I have supplied laptops and PC's to two small businesses and they definitely wanted to be able to claim the GST component back, if they were not able to do that I would not have got those jobs because GST was a fair whack in the final bill. I didn't want to get involved with dubious work arounds such as in mikebartnz's post above. It is easier just to provide an invoice myself. If you get a decent software package it takes care of the GST automatically with one button push at GST time (twice a year) so I don't see it being a hassle or incurring extra accountancy fees. Yes I may have to pay a bit when that time comes due but in the meantime it is sitting in my bank account gaining interest so I don't see that as a downside either. In the first six months I hope to purchase whatever equipment I need to carry out the business side of things and with a bit of luck GST will pretty much even itself out. The GST component on hardware is miniscule (in reality it is only GST on the mark-up which isn't huge), it's the GST on the labour cost which will end up being the difference. The beauty with this part time venture is that I don't need the money that I will (hopefully) make doing it - therefore I'm not paying myself a wage, using the funds to pay bills or other expenses. It is run from home and all the expenses incurred with that are already paid from my salary from my main occupation. Perhaps there will be an additional insurance cost, maybe some accounting fees at years end, but I anticipate that I will be able to claim back a (business use) percentage of my home bills during the year which will (hopefully) offset that. This is a strict part-time venture targeting the things I know and nothing else. I don't want to branch out here and diversify there. I just want to continue doing the things that I enjoy and if I make a buck or two so be it. Keep the comments rolling though - I'm finding the discussion very helpful!	Tukapa (62)
1275000	2012-05-15 09:33:00	In that case, keep a separate GST bank account. Your bank might charge you $2 or something for it, but it means that for everything that you sell, if you throw 15% of the invoice amount in to that bank account, then after 6 months you won't have the problem of "Well bugger me where am I supposed to get $3K from in a hurry?!"	Chilling_Silence (9)
1275001	2012-05-15 10:27:00	Yeah, I agree with Chill there, I do mine very 2 months, makes it a lot easier - and its little enough that you dont really have to budget for (got my last one down to $76 lol), I cant imagine the horror of doing it every 6 months. Hmmm, not sure about "that I don't need the money that I will (hopefully) make doing it - therefore I'm not paying myself a wage, using the funds to pay bills or other expenses" bit Mike. Company end of year profits are taxed at 33% as an individual you are probably taxed at 24% (I think). So, its better that your company makes no profit and any profit made goes to you (either as Drawings or Wages). Saying that, it will probably be classed as secondary income which I think is a higher tax rate?? I'm not sure, have to say I'm not up on all that bit - worth running it past your accountant and seeing whats best to get the most out of it. - the less you have to give to IRD the better !! I hate bookwork and taxes, filling in forms and crap, I do what I have to do and tell my accountant to do the rest and keep IRD away from me so I can get on with work and enjoy myself. My accountant gives me a form each year to fill out, and I still drop it back in with my books unfilled and he fills it in for me lol, I just really hate all that side of things. :)	Iantech (16386)
1275002	2012-05-15 11:15:00	As far as tax goes my income from my main job takes me into the 33% bracket. Being a sole trader my understanding is that any tax I pay on any profit on the secondary occupation will also be 33% (individual tax rates). I do understand the company tax rate to be 28% but that does not apply to my setup. For all intents and purposes it would just be like getting a pay rise at my main occupation (except I'm working more hours for it). :D	Tukapa (62)
1275003	2012-05-15 13:34:00	I think you are right, it may be down to 28% now you mention it - shows how much I know lol. Oh, you're one of these "rich" people who are in the "upper" tax bracket huh lol, in that case it will make no difference to you. Nice :D	Iantech (16386)
1 2 3 4 5