Self Employed
May 7th 2007, 5:37 pm
#1
Forum Regular
Thread Starter
Joined: Apr 2007
Location: Silverstream, upper Hutt
Posts: 130
Self Employed
Hi,
We hit Wellington area/Hutt Valley on the 1st July for hubby's new job.
Once I have the 3 children settled I want to be self employed, I am a UK Phoenix Trader and plan to become an NZ trader ASAP.
But I need help and lots of info on small businesses.
Everything from banking, Tax, NI or EQU, who to register with, what tax breaks are available, how to claim them etc etc?
It is daunting coming from the uk and having a personal allowance that you don't pay tax or NI on to being in NZ and having to pay tax from the first $1 you earn! Is this really the case and has anyone got any good advice?
zoe
We hit Wellington area/Hutt Valley on the 1st July for hubby's new job.
Once I have the 3 children settled I want to be self employed, I am a UK Phoenix Trader and plan to become an NZ trader ASAP.
But I need help and lots of info on small businesses.
Everything from banking, Tax, NI or EQU, who to register with, what tax breaks are available, how to claim them etc etc?
It is daunting coming from the uk and having a personal allowance that you don't pay tax or NI on to being in NZ and having to pay tax from the first $1 you earn! Is this really the case and has anyone got any good advice?
zoe
May 7th 2007, 11:13 pm
#2
BE Forum Addict
Joined: Jul 2006
Location: Porirua,NZ
Posts: 3,275
Re: Self Employed
None at all love,sorry. Crap with stuff like this. Once you've got your IRD number-dead quick,takes a week-either speak to the IR department,or just give one of the banks a ring-see if they can advise,sorry though,not much help,just wanted to reply.
When you land-Cherry is minutes away from you,and me,Donna,Boopy,Cottage,Rob Club,Wilma,even Popps and Biddy,plus many more within 20-30 minutes. Will pm you our address-ring when here!!
When you land-Cherry is minutes away from you,and me,Donna,Boopy,Cottage,Rob Club,Wilma,even Popps and Biddy,plus many more within 20-30 minutes. Will pm you our address-ring when here!!
May 8th 2007, 8:21 am
#3
Winter hibernator
Joined: May 2007
Location: Miramar - Wellington - North Island - New Zealand
Posts: 779
Re: Self Employed
Oh don't forget about us "city" expats will you Danny
May 8th 2007, 8:41 am
#4
BE Forum Addict
Joined: Sep 2006
Posts: 4,298
Re: Self Employed
Hi,
We hit Wellington area/Hutt Valley on the 1st July for hubby's new job.
Once I have the 3 children settled I want to be self employed, I am a UK Phoenix Trader and plan to become an NZ trader ASAP.
But I need help and lots of info on small businesses.
Everything from banking, Tax, NI or EQU, who to register with, what tax breaks are available, how to claim them etc etc?
It is daunting coming from the uk and having a personal allowance that you don't pay tax or NI on to being in NZ and having to pay tax from the first $1 you earn! Is this really the case and has anyone got any good advice?
zoe
We hit Wellington area/Hutt Valley on the 1st July for hubby's new job.
Once I have the 3 children settled I want to be self employed, I am a UK Phoenix Trader and plan to become an NZ trader ASAP.
But I need help and lots of info on small businesses.
Everything from banking, Tax, NI or EQU, who to register with, what tax breaks are available, how to claim them etc etc?
It is daunting coming from the uk and having a personal allowance that you don't pay tax or NI on to being in NZ and having to pay tax from the first $1 you earn! Is this really the case and has anyone got any good advice?
zoe
I have just started self employment today!! Rang the IRD..they are sending someone to see me at home to advise me of my obligations and what I can claim for. You do not have to register for GST (vat but 12.5%) unless you will earn over $40k. Can't help thinking you are going to earn MUCH more than that! I won't!!! I intend to pay my tax each month on what I have earned. Under $38k its 19.5% plus a small ACC levy (ACC similar to National ins. stamp).
You simply walk, or hop, perchance skip (if its been a good month) into any Westpac Bank with your IRD no. in your mits, fill in a special IRD deposit slip and you money is spiritted away into the IRD coffers. Here's the good news..when the end of the tax year cometh..Mr IRD will return to you 6% of what tax y'all have paid over the year as a bonus for early payment. Good or what?
So if you earn under $38k your tax burden (albeit on the first dollar upwards) can be as low as 13.5% and thats before you have claimed for all the stuff that you can claim for!! remember there is an ACC levy to pay aswell..dependent on what you do. Methinks the higher risk the greater the burden. As a lowly cleaner I hope that I am not considered a high risk profession!! I am offering a top of the range money back guarantee and I work like a typhoon on speed!!! $30 an hour.
Last edited by Genesis; May 8th 2007 at 8:44 am.
May 8th 2007, 10:02 am
#5
Forum Regular
Thread Starter
Joined: Apr 2007
Location: Silverstream, upper Hutt
Posts: 130
Re: Self Employed
Phoenix Trading - You will have to come to my open house in August - Hutt valley area if its local!!!!
They are cards and paper - huge here in the UK. Much cheaper than shops and excellent quality - direct selling - bit like Avon/Tupperware etc! Tend to sell at coffee mornings, fairs and fetes and school events as well as direct to other mums and individuals.
I don't expect to make a huge profit after allowable expenses(??) probably no more than £4000 in my first year. New bbusinesstake a while to get going!
It took me over 1 year in the uk to be in profit after start up expenses and building up stock. And then only by £200 !!!
I know here I am exempt from NI (ACC equ) and have my uk tax break/personal allowance which has made it easier than what it looks like in NZ - where you pay tax and ACC from the first $ profit.
They are cards and paper - huge here in the UK. Much cheaper than shops and excellent quality - direct selling - bit like Avon/Tupperware etc! Tend to sell at coffee mornings, fairs and fetes and school events as well as direct to other mums and individuals.
I don't expect to make a huge profit after allowable expenses(??) probably no more than £4000 in my first year. New bbusinesstake a while to get going!
It took me over 1 year in the uk to be in profit after start up expenses and building up stock. And then only by £200 !!!
I know here I am exempt from NI (ACC equ) and have my uk tax break/personal allowance which has made it easier than what it looks like in NZ - where you pay tax and ACC from the first $ profit.
May 8th 2007, 9:25 pm
#6
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: Self Employed
Phoenix Trading - You will have to come to my open house in August - Hutt valley area if its local!!!!
They are cards and paper - huge here in the UK. Much cheaper than shops and excellent quality - direct selling - bit like Avon/Tupperware etc! Tend to sell at coffee mornings, fairs and fetes and school events as well as direct to other mums and individuals.
I don't expect to make a huge profit after allowable expenses(??) probably no more than £4000 in my first year. New bbusinesstake a while to get going!
It took me over 1 year in the uk to be in profit after start up expenses and building up stock. And then only by £200 !!!
I know here I am exempt from NI (ACC equ) and have my uk tax break/personal allowance which has made it easier than what it looks like in NZ - where you pay tax and ACC from the first $ profit.
They are cards and paper - huge here in the UK. Much cheaper than shops and excellent quality - direct selling - bit like Avon/Tupperware etc! Tend to sell at coffee mornings, fairs and fetes and school events as well as direct to other mums and individuals.
I don't expect to make a huge profit after allowable expenses(??) probably no more than £4000 in my first year. New bbusinesstake a while to get going!
It took me over 1 year in the uk to be in profit after start up expenses and building up stock. And then only by £200 !!!
I know here I am exempt from NI (ACC equ) and have my uk tax break/personal allowance which has made it easier than what it looks like in NZ - where you pay tax and ACC from the first $ profit.
May 9th 2007, 6:22 am
#7
Joined: Dec 2004
Location: Planet Earth, for now.
Posts: 719
Re: Self Employed
Zoe, what's a Phoenix thingy?
I have just started self employment today!! Rang the IRD..they are sending someone to see me at home to advise me of my obligations and what I can claim for. You do not have to register for GST (vat but 12.5%) unless you will earn over $40k. Can't help thinking you are going to earn MUCH more than that! I won't!!! I intend to pay my tax each month on what I have earned. Under $38k its 19.5% plus a small ACC levy (ACC similar to National ins. stamp).
You simply walk, or hop, perchance skip (if its been a good month) into any Westpac Bank with your IRD no. in your mits, fill in a special IRD deposit slip and you money is spiritted away into the IRD coffers. Here's the good news..when the end of the tax year cometh..Mr IRD will return to you 6% of what tax y'all have paid over the year as a bonus for early payment. Good or what?
So if you earn under $38k your tax burden (albeit on the first dollar upwards) can be as low as 13.5% and thats before you have claimed for all the stuff that you can claim for!! remember there is an ACC levy to pay aswell..dependent on what you do. Methinks the higher risk the greater the burden. As a lowly cleaner I hope that I am not considered a high risk profession!! I am offering a top of the range money back guarantee and I work like a typhoon on speed!!! $30 an hour.
I have just started self employment today!! Rang the IRD..they are sending someone to see me at home to advise me of my obligations and what I can claim for. You do not have to register for GST (vat but 12.5%) unless you will earn over $40k. Can't help thinking you are going to earn MUCH more than that! I won't!!! I intend to pay my tax each month on what I have earned. Under $38k its 19.5% plus a small ACC levy (ACC similar to National ins. stamp).
You simply walk, or hop, perchance skip (if its been a good month) into any Westpac Bank with your IRD no. in your mits, fill in a special IRD deposit slip and you money is spiritted away into the IRD coffers. Here's the good news..when the end of the tax year cometh..Mr IRD will return to you 6% of what tax y'all have paid over the year as a bonus for early payment. Good or what?
So if you earn under $38k your tax burden (albeit on the first dollar upwards) can be as low as 13.5% and thats before you have claimed for all the stuff that you can claim for!! remember there is an ACC levy to pay aswell..dependent on what you do. Methinks the higher risk the greater the burden. As a lowly cleaner I hope that I am not considered a high risk profession!! I am offering a top of the range money back guarantee and I work like a typhoon on speed!!! $30 an hour.
May 9th 2007, 7:01 am
#8
Forum Regular
Thread Starter
Joined: Apr 2007
Location: Silverstream, upper Hutt
Posts: 130
May 9th 2007, 7:20 am
#9
BE Forum Addict
Joined: Sep 2006
Posts: 4,298
Re: Self Employed
By the way I think that the 6% you get back from the IRD is 6% of the total tax you have paid rether than taking 6% of the 19.5%, sorry for that wrong info..still not bad eh??
May 9th 2007, 10:55 am
#10
Forum Regular
Joined: Apr 2007
Location: Waikanae
Posts: 70
Re: Self Employed
For information on starting up a small business, contact Biz Information 0800 42 49 46 and ask them for a start up pack (or you could pop in and see them at 8 Waring-Taylor St, Wellington). Also, on their website, there is an 'ask a question' facility (www.biz.org.nz).
As Genesis has mentioned above, you can phone IRD and request to see a BTIO (Business Tax Information Officer), who will come out and visit you if you prefer http://www.ird.govt.nz/yoursituation-bus/starting/ .
If you are registering a company, you can do this online www.companies.govt.nz . However, you only need to do this if you are setting up a limited company rather than operating as a sole trader.
Hope this helps and good luck with the business.
As Genesis has mentioned above, you can phone IRD and request to see a BTIO (Business Tax Information Officer), who will come out and visit you if you prefer http://www.ird.govt.nz/yoursituation-bus/starting/ .
If you are registering a company, you can do this online www.companies.govt.nz . However, you only need to do this if you are setting up a limited company rather than operating as a sole trader.
Hope this helps and good luck with the business.
