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| Thread ID: 77971 | 2007-03-29 07:24:00 | Should I run it as a business | george12 (7) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 536752 | 2007-03-29 23:08:00 | Latest I heard was that you don't need to register until your income, ie nett profit, exceeds the limit. Nope. Its turnover not profit. |
pctek (84) | ||
| 536753 | 2007-03-30 00:23:00 | Well as you say - compulsory registration. IRDs rules are if you charge money for your activity, regardless of whether you make a profit or a loss, then you have to declare it. If you are over the $40K GST limit, then best you do. Oh joy, you'll get not only stuck with paying GST and tax but ACC as well. Still, you're doing better than me................ LOL, ACC on selling computers.......what a joke that outfit is, I hate them, it's about time sportsmen started paying for their own damn cover, that way some of the OTT levies can be cut... |
SolMiester (139) | ||
| 536754 | 2007-03-30 04:10:00 | LOL, ACC on selling computers.......what a joke that outfit is, I hate them, it's about time sportsmen started paying for their own damn cover, that way some of the OTT levies can be cut... ACC is really just a government tax. The only reason it isn't part of your income tax, is because some jobs are higher risk than others, so the high risk jobs need to pay more in acc premimums than those who work in low risk jobs. |
rogerp (6864) | ||
| 536755 | 2007-03-30 04:29:00 | Then there is the consideration of being a licensed second hand dealer: www.justice.govt.nz |
Terry Porritt (14) | ||
| 536756 | 2007-03-30 06:02:00 | Hi George. This thread appears to be getting highjacked by people who don't like ACC. Getting back to your original query.... you are an earner of some substance - consider all those souls out there making not much more than $10-12 an hour. Society requires earners to contribute - tax, call it what you like - and I paid it all my life. It now gets stopped from my pension - which is less than the casual cash you are making. You are ripping off the rest of us by failing to contribute. When the IRD do catch you, and likely they will, they'll go back through your details for at least five years and I wish them well. Sleep well.:cool: | Scouse (83) | ||
| 536757 | 2007-03-30 06:32:00 | Hi George. This thread appears to be getting highjacked by people who don't like ACC. Getting back to your original query.... you are an earner of some substance - consider all those souls out there making not much more than $10-12 an hour. Society requires earners to contribute - tax, call it what you like - and I paid it all my life. It now gets stopped from my pension - which is less than the casual cash you are making. You are ripping off the rest of us by failing to contribute. When the IRD do catch you, and likely they will, they'll go back through your details for at least five years and I wish them well. Sleep well.:cool: No need to castigate George for this. I read into it that the circumstances have just crept up on him and now he finds that his little enterprise is more successful than what he thought it would be and now he wants to do the right thing. Good on him for trying to break out of that $10 - $12 / hour mould that you quote. I still say See an Accountant and don't be scared off by the contents of the previous post. I'm sure you'll be fine. |
jcr1 (893) | ||
| 536758 | 2007-03-31 01:41:00 | Hi George. This thread appears to be getting highjacked by people who don't like ACC. Getting back to your original query.... you are an earner of some substance - consider all those souls out there making not much more than $10-12 an hour. Society requires earners to contribute - tax, call it what you like - and I paid it all my life. It now gets stopped from my pension - which is less than the casual cash you are making. You are ripping off the rest of us by failing to contribute. When the IRD do catch you, and likely they will, they'll go back through your details for at least five years and I wish them well. Sleep well.:cool: I spent the last 14 months of my life, before I started these things, earning $8.50 an hour at a supermarket. I paid PAYE (obviously) on my supermarket income, just as these $10-12/hr guys have, and I am right about to pay the tax from my computer repairs to the IRD. For what it's worth, I guarantee you that anyone making $10-12 an hour full time is making a lot more per week/year than I am. I don't want to rip off anybody, I just don't want to pay more than I should. If they go back through my details for the last five years they'll be pleased to find that for everything I have done, I have paid my fair share of tax, except for the last two months which I have spent deciding whether I want to keep doing this trading stuff, and asking PressF1 what taxes to pay. The IRD has treated me oddly well in the last few years and I don't want to screw it up. So, I will start saving/paying income tax from my laptop sales from today (conveniently the end/start of the tax year), although I'll hold off on the GST until I get a better idea of what my turnover might be. Thanks jcr1, you're right about how this situation came about. I just have a knack for seeing deals and taking them, and it turned into a more steady thing... I won't see an accountant, but I might give the IRD themselves a call, they have always been very helpful. I want to ask them about paying tax more than once a year as large tax liabilities are painful, even if in theory I am saving the tax separately during the year. |
george12 (7) | ||
| 536759 | 2007-03-31 02:05:00 | Sounds like your entrepreneural ventures are starting to pay off, good on ya George! | Chilling_Silence (9) | ||
| 536760 | 2007-03-31 05:13:00 | I won't see an accountant, but I might give the IRD themselves a call, they have always been very helpful. I want to ask them about paying tax more than once a year as large tax liabilities are painful, even if in theory I am saving the tax separately during the year. I could suggest calling an accountant, not the IRD, but I won't... its up to you. The IRD may seem nice, but at the end of the day, they are there to ensure that the government can get as much as it possibly can based on the current tax legislation (bit like M$ really - LOL :D ) Its called provisional tax (based on profit/income for the previous financial year, or a value that you pick) and GST can be paid 6 monthly or 2 monthly although my accountant says the IRD have reviewed this recently. One of the things that gets me about IRD is that I am still a sole trader and pay GST 2 monthly. I occasionally forget to file the return but I normally don't pay any GST anyway so 10% penalty on nothing is nothing. Now if you miss a return, they will send you an assessment. This assessment is always around $1700 for the 2 months. I have not paid this for years and yet they insist in plucking this figure out of the air (think of a number them triple it). They do it deliberately so that it shocks you into ringing them up. When I did phone them, and said the assessment is rubbish, they guy basically said, "well it got you to ring up didn't it". |
dolby digital (5073) | ||
| 536761 | 2007-03-31 05:44:00 | I could suggest calling an accountant, not the IRD, but I won't . . . its up to you . The IRD may seem nice, but at the end of the day, they are there to ensure that the government can get as much as it possibly can based on the current tax legislation (bit like M$ really - LOL :D ) Its called provisional tax (based on profit/income for the previous financial year, or a value that you pick) and GST can be paid 6 monthly or 2 monthly although my accountant says the IRD have reviewed this recently . One of the things that gets me about IRD is that I am still a sole trader and pay GST 2 monthly . I occasionally forget to file the return but I normally don't pay any GST anyway so 10% penalty on nothing is nothing . Now if you miss a return, they will send you an assessment . This assessment is always around $1700 for the 2 months . I have not paid this for years and yet they insist in plucking this figure out of the air (think of a number them triple it) . They do it deliberately so that it shocks you into ringing them up . When I did phone them, and said the assessment is rubbish, they guy basically said, "well it got you to ring up didn't it" . Mine were always $500 . I've never paid $500 GST in my life . I guess you're right about their motives for it . I have had many 'fines' and never had to pay one, only to ring up and sort it out . It was $250 for not sending in a return I thought I'd done, and I just rang them and told them I owed nothing for the return (which was true) and they said they'd take care of it and the fine would disappear, and I didn't have to do the return . The letter that had the $250 fine before painted a rather more drastic picture to get me to call . I could talk to my accounting teacher I suppose, she used to be an accountant . That would at least be free . Oh and thanks Chilling Silence . This is how I'm saving to go to America next year (not permanently, don't worry, just for 8 months) . Maybe I'll bump into SurferJoe while I'm over there . |
george12 (7) | ||
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