Tax calculator for contractors?

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sinistermachine

5 posts

Wannabe Geek

#96115 20-Jan-2012 15:23

Hello,

I've just started contracting in IT and have a couple tax questions.

I have an accountant to do my tax at the end of the financial year, but I would like to have an accurate idea of how much tax I'll owe so I put the right amount aside.

Does anyone know of a set of calculators for income tax, ACC, GST, SL, advance tax?

Since it's not a salary I'm hoping I can just project my daily rate x the number of days I'll work during the FY minus holidays and days off and enter that in salary field.

Do any contractors here recommend any bookkeeping software? I looked at XERO but $30/m just to generate my invoices seems a bit much for what I would need.

Any suggestions would be great

testha

116 posts

Master Geek

#571356 20-Jan-2012 17:05

Try this one: http://www.ird.govt.nz/calculators/tool-name/tools-t/calculator-tax-rate.html

If you earn more than 60k or are GST registered dont forget to put your GST aside, saves you nasty suprise bills later on (;

wsnz

649 posts

Ultimate Geek

#571619 21-Jan-2012 13:55

You could start out with a "manual" method - create invoices using a speadsheet or wordprocessing template and keep them in a folder on your PC. Any bills you receive should be placed either into an expenses folder on the PC, or a hard copy on file.
If you do this and keep a separate bank account for your company, this will keep things nice and tidy.

Once you build your clientèle (and hence transactions) then you could probably justify purchasing some accounting software, subscribing to Xero, or dare I say it paying an accountant to do the whole lot.

sinistermachine

5 posts

Wannabe Geek

#576418 2-Feb-2012 18:54

Going to go with a spreadsheet for now, does anyone have the formula to calculate income tax with thresholds and an ACC CoverPlus formula?

I did find a income tax formula posted on geekzone awhile ago but the results didn't match the results using http://www.ird.govt.nz/calculators/tool-name/tools-t/calculator-tax-rate.html