Sole Trader AND employed?
#1
Sole Trader AND employed?
Do any of you good people know if you can be employed (by your employer) AND also set yourself up as a Sole Trader at the same time?
Do you just add your Sole Trader profit/losses to your personal tax return or do you have to set them up and coomplete them as two completely seperate things?
Any help appreciated
Do you just add your Sole Trader profit/losses to your personal tax return or do you have to set them up and coomplete them as two completely seperate things?
Any help appreciated
#4
Forum Regular
Joined: Jan 2009
Location: New Zealand
Posts: 280
Re: Sole Trader AND employed?
I did exactly that for the past 10 years... I was self employed (as a sole-trader) but also ran my own Ltd company of which I was an employee (albeit as a Director).
#5
Re: Sole Trader AND employed?
Haze is employed in a salon part time, and mobile hairdresser the rest of the week.
#6
Re: Sole Trader AND employed?
Thanks guys ...... I am presently employed full time for a power company but want to set up as a sole trader to run a small business at the weekend.
Is there a section in the IR3 that is for income from being a sole trader (self-employed) or a completely seperate document to fill in? Basically do I need to look forward to one or more tax returns?
Also it looks quite easy setting up as a sole-trader, what is your experience of setting up?
Is there a section in the IR3 that is for income from being a sole trader (self-employed) or a completely seperate document to fill in? Basically do I need to look forward to one or more tax returns?
Also it looks quite easy setting up as a sole-trader, what is your experience of setting up?
#7
Lost in BE Cyberspace
Joined: Jun 2005
Location: In a large village called Auckland
Posts: 5,249
Re: Sole Trader AND employed?
It all goes on the same document, first section is your PAYE income and then you go on to declare any other income and related expenses. There's not much to it really.
#8
Re: Sole Trader AND employed?
Thanks for your replies guys.
Just need to do a little more research / pricing out before I venture out as a SoleTrader!
Is it just a matter of calling the IRD and telling them I want to register as a ST so they have it on their records?
Just need to do a little more research / pricing out before I venture out as a SoleTrader!
Is it just a matter of calling the IRD and telling them I want to register as a ST so they have it on their records?
#9
Lost in BE Cyberspace
Joined: Jun 2005
Location: In a large village called Auckland
Posts: 5,249
Re: Sole Trader AND employed?
You only have to register for GST if your expected turnover is likely to go over $60,000 within the next 12 months.
If I were you I would just start doing whatever work it is you intend to do, keep detailed records of all your income and expenses, you have a full year to figure out the tax stuff and might be better placed to assess the situation once you've earned a bit. Making sure to figure out the business expenses you can claim for your home/ car / van if applicable and see how you go.
http://www.ird.govt.nz/business-inco...s/homebus-exp/
The 2010/11 tax year has already started and you'll not have to file anything with IRD until this time next year (the latest date being early in July 11), so you've plenty of time on your side to suss out the finer details.
Good luck!!
#10
Re: Sole Trader AND employed?
All the other options require something to be done before you are in that state (you need to be employed, or to set up the company etc), because they all give some (different levels) of protection and/or differentiation between the individual and business.
The sole trader doesn´t have any such protection (but in some areas can take out insurance of course) and that is the basic state of the individual in business.
#11
Re: Sole Trader AND employed?
Excellent - thanks guys!
I think I will start up and see how it goes. I won't be getting loans or anything and the investment (small) will be my own cash. Will be quite a small venture and doubt it will go over $60,000 turnover!! although there is always hope
If I don't give it a go then I will never know
I think I will start up and see how it goes. I won't be getting loans or anything and the investment (small) will be my own cash. Will be quite a small venture and doubt it will go over $60,000 turnover!! although there is always hope
If I don't give it a go then I will never know
#12
BE Forum Addict
Joined: Jul 2007
Location: bottom of the world
Posts: 4,533
Re: Sole Trader AND employed?
yes you can
I work full time in mental health and also have a small business
that i run on my days off.
The businessis registered as a limited liability company but i could
have gone as a sole trader if i wanted to. for tax reasons it doesnt make difference
I work full time in mental health and also have a small business
that i run on my days off.
The businessis registered as a limited liability company but i could
have gone as a sole trader if i wanted to. for tax reasons it doesnt make difference