> Whether the IRD will consider the sub_contractor as an employee or not > depends on the arrangment you have with him/her. > > For example, if the subbie provides their own equipment & workspace, > they > decide what hours they work etc, then they will be considered to be a > contractor.
IRD relies more on 80/20 billing rule. If more than 80% of your income comes from one source, then they will consider you an employee and either a) make the employer take PAYE (which is what you're on now) b) make the employer pay RWT (more likely) If you have turnover larger than $60K then you need to register for GST (http://www.ird.govt.nz/gst/gst-registering/register-who). You can file returns 6 monthly, 2 monthly or monthly it's up to you. Point to note is that you can't claim GST if you're not registered. You'll also need to file an IR3 tax return yourself (or preferably via an accountant) and eventually have to pay provisional tax (this means you pay tax in advance which means you'll be skint your second year of trading) assuming you're a sole trader. If you do decide to go contracting, get an accountant, read http://www.phpug.org.nz/index.php/How_Much_Should_I_Charge and go hard :-) HTH dali --~--~---------~--~----~------------~-------~--~----~ NZ PHP Users Group: http://groups.google.com/group/nzphpug To post, send email to [email protected] To unsubscribe, send email to [email protected] -~----------~----~----~----~------~----~------~--~---
