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Thread ID: 113981 2010-11-13 02:22:00 Working as a sole trader Renmoo (66) PC World Chat
Post ID Timestamp Content User
1152438 2010-11-13 02:22:00 Dear all

I have been browsing through the IRD and the Business.govt.nz websites for the past few hours, but I am still not sure what documents and registrations are required in order to work legally as a sole trader. Having said so, this is what I manage to gather so far:

1) I don't need to register for a separate IRD number as it's just working as a sole trader.
2) Since I will be working for myself, I would still need to complete an IR334 form.

What should follow after that? Thank you :) 		Renmoo (66)
1152439 2010-11-13 02:30:00 Why do you need an IR334?

If you're a sole trader and you're not employing anyone else, then you just keep your own financial records and fill out an IR3 at the end of the tax year. 		somebody (208)
1152440 2010-11-13 02:32:00 You have to register for GST if you intend to earn over $30k pa .... got to keep all bookwork for 7 years in-case you're audited.

Best advice .... get a good accountant .... they'll pay for themselves in the way they do the books for you and claim on every deductible item, including depreciation on capital purchases. 		SP8's (9836)
1152441 2010-11-13 03:41:00 Where would I find out the information requirements needed for a receipt or invoice to be legal? Renmoo (66)
1152442 2010-11-13 03:48:00 Where would I find out the information requirements needed for a receipt or invoice to be legal?

From your new accountant. 		Cicero (40)
1152443 2010-11-13 03:58:00 You have to register for GST if you intend to earn over $30k pa .... got to keep all bookwork for 7 years in-case you're audited.

Best advice .... get a good accountant .... they'll pay for themselves in the way they do the books for you and claim on every deductible item, including depreciation on capital purchases.


Hell yes get an accountant to give advice.

Don't trust the internet,its full of misinformation.

For example the threshold was $40000 and was raised to $60000 in 2009.

www.ird.govt.nz 		Metla (12)
1152444 2010-11-13 04:11:00 Hell yes get an accountant to give advice.


Ah bollocks. I never did.
IRD will tell you what you need to know.
GST is $60,000. That's turnover not profit.

Types of income tax returns

If you're in business, you'll need to complete and send us an income tax return, and attach either:

* a copy of your financial records, or
* a form that summarises your income and expenses.

The following summary forms may be used:

IR10 - This form summarises selected account information from your financial records.

Business type Return to use Attachment
Sole trader IR3
copy of accounts or IR3B, IR3F, IR3R, IR10 		pctek (84)
1152445 2010-11-13 04:15:00 Ah bollocks. I never did.
IRD will tell you what you need to know.


I would trust the IRD about as much as the average Mcdonald employee, on any matter.

And if you were asking tax related questions on a computer forum then I'd be referring you to an accountant as well, The difference is real world experience, which you have in spades and which the OP appears to have little of.

Perhaps they could get a job at the IRD.

Fries included. 		Metla (12)
1152446 2010-11-13 04:17:00 Wait, is the op Jamuz?

:illogical 		Metla (12)
1152447 2010-11-13 04:32:00 From your new accountant.
Couldn't agree more :thumbs:

It may cost you a few $$ to get the correct advice, but its worth it. Better to be right than have IRD chasing you.

Most accountants, if they are any good will tell you what you "have to do" - what you should do, and what you don't have to do. Mine did when I first started my own business, and he has saved me quite a bit of $$ over the years - and all completely legal.

If you need an example -- one year IRD said I owed in round figures 4 K -- my accountant pointed out a few "facts and figures" and that price dropped down to $0.00 ( Nothing or close enough to it). 		wainuitech (129)
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