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Contracted services and contractor expenses how to#

When you register as a business, you’ll not only need to make regular submissions to the Companies Office to keep your business name, you’ll also have to send them annual reports and other documentation. If you’re thinking of registering a company, you may want to check if this is the right approach for you. take on permanent staff, and have stock, inventory and creditors. As a sole trader, you can still claim expenses, register for GST and use a logo and trading name - there are little or no tax advantages to registering as a business, and you should really only consider it if you intend to actually run a small business - i.e. In the vast majority of cases, you absolutely don’t need to register as a business in order to work as a contractor. Myth 1: You need to register as a business in order to be a contractorĭespite what you might have heard from various sources (accountants, NZBN, Xero, and many others), this is not at all true. So let’s kick things off by debunking some common myths and misconceptions that surround contract work. This is just one of those common myths about contracting, and there are many others. This is absolutely not true, and for those who were given this advice, it’s very likely that you’re doing twice as much tax paperwork as is needed (one return filing for you, the individual one filing for your registered business). For instance, it’s a common misconception that you need to be registered as a business in order to go out contracting. Not only that, but there’s a lot of misinformation (what you need to do to get set up, for example) out there. Planning for your future can be difficult, as you could be earning an income on an irregular basis. And if you’ve been working in permanent employment your whole career, it can be very difficult to actually know where to begin. In spite of all the awesome opportunities of contract work, it does come with many financial obligations that would normally be taken care of by a permanent employer.įor instance, Income tax, GST, ACC, KiwiSaver all get dropped on your plate when you become a contractor.

Contracted services and contractor expenses how to#

How to Take the Hassle Out of Contracting.

What’s the Difference Between a Contractor and an Employee?.

If you’re a seasoned contractor, this guide will provide some tools and insights that might have been previously missing from your toolbox. If you’re new to the world of contracting, this guide will steer you in a direction that will hopefully get you more prepared for finding work and knowing what your obligations are. So to help, we prepared this guide that will help you navigate through the different aspects of contracting. Embracing the ‘flexible’ workforce is key for these organisations to attract the best talent possible, with the least amount of risk.īut there’s a lot that people don’t tell you about how to thrive as a contractor, and there are a lot of myths floating around out there.

Contracting is becoming increasingly sought after by companies all over the world.

The ability to test out different industries and workplaces on an impermanent basis can help you pivot into areas you hadn’t previously thought of exploring.

If your skillset is in demand, you could earn more money than if you were permanently employed.

The potential to earn more money: as a contractor, you’ll get paid on an hourly rate, which is set at market rates.

A better work/life balance: as your own boss, you can often determine where and when you work.

When you go out contracting, numerous benefits open up: