Do I need to collect GST?

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CookieMonster

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#192294 5-Mar-2016 10:54

Hello,

I'm currently in a full time employment during the day, but also considering some moonlighting work in the evenings. My Day job alone earns me more than $60k before tax, but the total income from the moonlighting gig is unlikely to go anywhere near $60K p.a. My question is, do i still need to collect GST on behalf of IRD?

Thank you.

UHD

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#1506415 5-Mar-2016 11:15

Nope.

NonprayingMantis

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#1506417 5-Mar-2016 11:22

You don't need to, but if the work you are doing will be for other businesses who are GST registered then I highly recommend you do register for GST. They won't care about the GST charge on your invoice (since they Offset it against GST they charge anyway). And it means you can then claim back the GST you pay on anything you purchase as a (legitimate) business expense for your business - office expenses, a new laptop etc. which can add up to quite a bit.

Batman

Mad Scientist
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#1506420 5-Mar-2016 11:46

Sounds like a trip to an accountancy?

Linuxluver

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#1506449 5-Mar-2016 13:16

CookieMonster:

Hello,

I'm currently in a full time employment during the day, but also considering some moonlighting work in the evenings. My Day job alone earns me more than $60k before tax, but the total income from the moonlighting gig is unlikely to go anywhere near $60K p.a. My question is, do i still need to collect GST on behalf of IRD?

Thank you.

There is a minimum / limit....It used to be $24,000 / year. Not sure what it is now. If you're trading above it, you need to be in the GST system.

I registered for GST years ago. If you stay on top of your receipts / invoices it's not too bad. If you let it go for a while it can be a real pain trying to reconstruct the past several weeks / months.

I had a small part-time business that earned too much. The time I spent accounting for everything sort of took the fun out of it....along with the demands for provisional tax on the income i hadn't earned yet.....and might not....with penalties for being to high or to low.

I shut down the business.....the IRD was just too heavy-handed in their demands that my fun, part-time thing be a secure, regular source of revenue for them. It wasn't like that for me at all. I was just having fun.

When I shut it down I had to be careful about anything I had claimed as a business expense. I risked having to repay the tax on the part of the PC and other gear that had not fully depreciated yet. More "not fun'.

_____________________________________________________________________

I've been on Geekzone over 16 years..... Time flies....

afe66

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#1506559 5-Mar-2016 18:05

IRD website pretty good.

I'm lucky in that the money I earn on side is purely my intellect, not requiring any equipment and is under 60k so get not issue.

I just take 33% off and sit it in a separate account and pay it all on provisional tax date.

NonprayingMantis

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#1506641 5-Mar-2016 22:13

afe66:
IRD website pretty good.

I'm lucky in that the money I earn on side is purely my intellect, not requiring any equipment and is under 60k so get not issue.

I just take 33% off and sit it in a separate account and pay it all on provisional tax date.

A.

Yep. It's actually not that hard to figure it out. If you're smart enough read and count then you can figure out how GST works.
Take a couple of hours to read the IRD website section in GST . Then it will take you a few hours a year to calculate and file the return. It will save you at least hundreds of dollars a year, possibly thousands.