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# 210321 22-Mar-2017 13:50
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Its been a while since I contracted.

 

In aus if you live to far away to commute you can claim living costs ie an apartment off your income tax.

 

is that the same in NZ for contractors?


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  # 1745816 22-Mar-2017 13:52
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Talk to IRD and get the right information.





Mike
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The views stated in my posts are my personal views and not that of any other organisation.

 

Using empathy takes no energy and can gain so much. Try it.

 

 


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  # 1745835 22-Mar-2017 13:59
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Not sure if it would be considered travel costs and accommodation http://www.ird.govt.nz/business-income-tax/expenses/travel-exp/bit-expenses-travelexp.html But you are best to talk to an accountant, and the IRD.


 
 
 
 




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  # 1745836 22-Mar-2017 14:01
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Sorry I should have said in Aus its callhed LAFHA, its actually an allowance you pay your self and is not taxable.

 

A lot of people say, live in Brisbane but work in Sydney and have a 1 bedder in Sydney they get paid for through their Agency. Yes in Aus Agencies actually do Paye and your insurance unlike the millions of kiwis just waiting to get sued because they think it cant happen to them.


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  # 1745840 22-Mar-2017 14:04
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In Australia there are a lot more things that a PAYE taxpayer can claim vs NZ. I suspect AU vs NZ contactors are also in the same boat.

 

 




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  # 1745867 22-Mar-2017 14:47
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I was shocked at how bodgy the contracting system is in NZ when I got back and that Agencies dont do Paye and provide Insurance, ie you work for them. Im not quite sure what they get paid for.

 

And got screwed over by one that got Recruiter of the year, it was randcid. 

 

I think NZ is improving though as the IT market matures. 

 

Who knows what will happen if the economy takes a 30% dive.

 

Thanks Matt, I thought it might just be something common practise here, but like insurance it doesnt seem to be.


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  # 1745868 22-Mar-2017 14:51
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The law is changing around contractors working for agencies, http://www.ird.govt.nz/news-updates/contractor-changes.html?id=homepage

 

Also the last agency I worked for provided insurance so ymmv.


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  # 1745990 22-Mar-2017 18:20
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@Tealeaf you will be surprised then that IRD is now asking agencies to collect PAYE instead of the contractor paying at end of the year.

 

If you are working from home and it's a good amount of the time then you can claim a percentage of power, phone, rent as business expenses. Contact your accountant for more and correct information.





 
 
 
 


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  # 1746017 22-Mar-2017 19:31
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MikeB4:

 

Talk to IRD and get the right information.

 

 

The IRD won't provide individualised advice. What the OP needs is an accountant if he's unable to work these things out for himself.

 

 

 

[Mod edit (MF): removed a word]


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  # 1746039 22-Mar-2017 20:10
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dejadeadnz:

 

MikeB4:

 

Talk to IRD and get the right information.

 

 

The IRD won't provide individualised advice. What the OP needs is an accountant if he's unable to work these things out for himself.

 

 

 

[Mod edit (MF): removed a word]

 

 

 

 

correct, but the IRD will provide guidelines and one can request the appropriate legislative and policy information. This can avoid expensive accountants fees.





Mike
Retired IT Manager. 
The views stated in my posts are my personal views and not that of any other organisation.

 

Using empathy takes no energy and can gain so much. Try it.

 

 


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  # 1746044 22-Mar-2017 20:18
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MikeB4:

 

 

 

correct, but the IRD will provide guidelines and one can request the appropriate legislative and policy information. This can avoid expensive accountants fees.

 

 

As someone who's actually given advice to people/organisations in dispute with the IRD, I can assure you that Joe Average who thinks it a good idea to post on an internet forum to get tax advice will get exceptionally limited actionable help from the IRD. The types of individuals with motivation and judgement will benefit massively from what's on the IRD website. The former class of people typically won't.

 

OP: I can't stress enough that you don't want to do anything that attracts an audit from the IRD, nor any kind of tax penalties. The powers of the IRD are enormous and they can come down extremely hard on people perceived to be taking unjustified or abusive tax positions. 


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  # 1746045 22-Mar-2017 20:19
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dejadeadnz:

MikeB4:


Talk to IRD and get the right information.



The IRD won't provide individualised advice. What the OP needs is an accountant if he's unable to work these things out for himself.


 


[Mod edit (MF): removed a word]


You can ring the IR and ask for clarification of tax obligations for any scenario (obviously not complex scenario's). As long as you don't personalize it, you can obtain the IR view. However, verbal advice over the phone should be treated as a guide at best; and it is important to get an accountant to confirm your tax obligations.




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  # 1746046 22-Mar-2017 20:21
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dejadeadnz:

 

MikeB4:

 

 

 

correct, but the IRD will provide guidelines and one can request the appropriate legislative and policy information. This can avoid expensive accountants fees.

 

 

As someone who's actually given advice to people/organisations in dispute with the IRD, I can assure you that Joe Average who thinks it a good idea to post on an internet forum to get tax advice will get exceptionally limited actionable help from the IRD. The types of individuals with motivation and judgement will benefit massively from what's on the IRD website. The former class of people typically won't.

 

OP: I can't stress enough that you don't want to do anything that attracts an audit from the IRD, nor any kind of tax penalties. The powers of the IRD are enormous and they can come down extremely hard on people perceived to be taking unjustified or abusive tax positions. 

 

 

 

 

As someone who has given advice in this area I am just as entitled to give a view as you are.  





Mike
Retired IT Manager. 
The views stated in my posts are my personal views and not that of any other organisation.

 

Using empathy takes no energy and can gain so much. Try it.

 

 


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  # 1746047 22-Mar-2017 20:23
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Those views aren't binding. Trust me, there is a reason why people pay specialist tax lawyers and accountants (even actual lawyers like me do it on behalf of our organisations) to obtain binding rulings from the IRD. Those rulings aren't made by the guy/gal answering IRD's 0800 lines. People really need to accept that they are ultimately responsible for their own tax position. If you aren't confident, take a conservative position or get advice. There's no way around this.

 

 

 

 

 

 

 

 


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  # 1746050 22-Mar-2017 20:24
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dejadeadnz:

 

MikeB4:

 

 

 

correct, but the IRD will provide guidelines and one can request the appropriate legislative and policy information. This can avoid expensive accountants fees.

 

 

As someone who's actually given advice to people/organisations in dispute with the IRD, I can assure you that Joe Average who thinks it a good idea to post on an internet forum to get tax advice will get exceptionally limited actionable help from the IRD. The types of individuals with motivation and judgement will benefit massively from what's on the IRD website. The former class of people typically won't.

 

OP: I can't stress enough that you don't want to do anything that attracts an audit from the IRD, nor any kind of tax penalties. The powers of the IRD are enormous and they can come down extremely hard on people perceived to be taking unjustified or abusive tax positions. 

 

 

I agree fully. An accountant was my past life. You can easily work with and talk to the IRD, they are not the enemy. Get a bit dodgy, and expect to be targeted, and thats fair enough. Its very easy to be not sure, so ask. Getting professional advice is recommended. 

 

 


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  # 1746134 22-Mar-2017 22:11
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BlinkyBill:
You can ring the IR and ask for clarification of tax obligations for any scenario (obviously not complex scenario's). As long as you don't personalize it, you can obtain the IR view. However, verbal advice over the phone should be treated as a guide at best; and it is important to get an accountant to confirm your tax obligations.

 

Advice from a tax agent for which you will pay handsomely and they will take no responsibility if they get it wrong - it'll still be entirely your fault.


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