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Thread ID: 67071 2006-03-16 03:34:00 tax question Greven (91) PC World Chat
Post ID Timestamp Content User
438512 2006-03-16 03:34:00 I did 2 weeks of contract work recently, and made about $2400. Tax wasn't taken off this amount, so I will have to pay it come tax time (That must be coming up very soon is it?).

I'm trying to work out what rate it will be taxed at, what I can get back & will I get a bill from ACC for not paying any levies (They wouldn't take me on as a temporary employee - I had to be a self employed contractor)

Does anyone know enough about tax to help me out?

Edit: If I have to do more contract work in the future, does anyone have any recomendations for who to get professional indemnity insurance from?
Greven (91)
438513 2006-03-16 03:37:00 don't know **** but these people (http://www.ird.govt.nz/) might be able to help. plod (107)
438514 2006-03-16 03:40:00 The ACC depends on other factors, ie if you already have had ACC levies deducted from a paid position, but yes it is possible you will be liable for ACC as a self-employed person.

Refer to the following link NZ Tax Rates (www.ird.govt.nz)

If you keep documentation of your expenses for this period then you would be able to deduct them from the money you made.
Obelix (752)
438515 2006-03-16 03:45:00 firstly you have GST to pay from it.

tax is basicly tax on profit. so just make sure you write off as much stuff as you can. it depends on what you earned over the whole year, not just a week.

it may be easier just to send it to an accountant.

insurace......QBE or even crowds like NZI etc do tradesman size (1 mill) insurace.
mind you if your only doing a small amount of work do you really need it?
tweak'e (69)
438516 2006-03-16 04:39:00 firstly you have GST to pay from it.
If Greven is under the GST threshold of I think $30,000(It maybe $34,000) there is no need to get involved in it but needs to watch out if getting a lot more contract work and goes above the threshold.
mikebartnz (21)
438517 2006-03-16 04:40:00 It's simple:

(1) How much money did you get paid?
(2) Hand it over.
Graham L (2)
438518 2006-03-16 23:28:00 It's simple:

(1) How much money did you get paid?
(2) Hand it over.

You've been listening to too much Michael Cullen :D
dolby digital (5073)
438519 2006-03-17 00:37:00 If Greven is under the GST threshold of I think $30,000(It maybe $34,000) there is no need to get involved in it but needs to watch out if getting a lot more contract work and goes above the threshold.

Agreed. $40,000 threshold.

Yes you will have to pay an ACC levy as a self-employed earner. ACC will bill you once IRD know your income details.

So far as deductions go, IRD aren't interested in doing your accounts. They want everything parcelled up and delivered. You can do this yourself or get an accountant. Personally I'd recommend an accountant - lends an air of legitimacy to what you do.

Tax will be at least 21% on nett profit - ie less expenses.
Winston001 (3612)
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