Going from a person employed on salary and wages to going into business or becoming a self-employed contractor there are certain aspects of this transition that you need to understand and consider very carefully: –
- Will you be classed as an employee or a self-employed contractor, this will determine how you are required to account for tax and the type of tax return you are required to file.
- How does KiwiSaver work for self-employed?
- Work out whether you must register for New Zealand GST, this will determine if you are required to register for GST, whether you will be an invoice or payments basis and a one, two or six monthly filer.
- Know what the relevant laws and regulations a business owner / self-employed contractor must comply with and decide whether you are going to DIY or engage the services of a professional.
- Do you need a Business Bank Account?
Finally, thank you for taking the time to read this. I trust that the above has been informative and if there is any aspect that you wish to discuss further please contact us.
Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.