Tips for Contracting/Consulting

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Benjip

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#2005011 30-Apr-2018 11:53

If you're just starting out, you'd probably be a good candidate for the new AIM (Accounting Income Method) system with IRD, as long as you're using Xero or MYOB.

It basically means you pay tax every month, based on the earnings (or losses) for that month. No more waiting around for a massive tax bill to appear.

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Delphinus

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#2005050 30-Apr-2018 12:11

Benjip:

If you're just starting out, you'd probably be a good candidate for the new AIM (Accounting Income Method) system with IRD, as long as you're using Xero or MYOB.

It basically means you pay tax every month, based on the earnings (or losses) for that month. No more waiting around for a massive tax bill to appear.

Is anyone using AIM yet? I've been advised against it.

jarledb

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#2005136 30-Apr-2018 13:47

Delphinus:

I would highly recommend getting ACC CoverPlus Extra. Makes life much simpler if you ever need to claim. Basically you just choose your level of ACC insurance.

I saw an insurance company claim the ACC only covers accident and not illness.

So I guess an insurance to take care of income if you get ill is important too?

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kryptonjohn

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#2005138 30-Apr-2018 13:49

jarledb:

Delphinus:

I would highly recommend getting ACC CoverPlus Extra. Makes life much simpler if you ever need to claim. Basically you just choose your level of ACC insurance.

I saw an insurance company claim the ACC only covers accident and not illness.

So I guess an insurance to take care of income if you get ill is important too?

Income protection insurance is a good idea but eye wateringly expensive. I've never claimed on it and if I had banked the premiums instead I could just about retire!

Delphinus

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#2005142 30-Apr-2018 13:59

jarledb:

I saw an insurance company claim the ACC only covers accident and not illness.

So I guess an insurance to take care of income if you get ill is important too?

Just ensure your hourly rate allows for overheads such as sick leave, annual leave, unbillable hours (admin, invoicing, chasing up invoices etc, marketing, networking, hardware costs (PC's etc)).

https://www.consultingsuccess.com/consulting-fees-calculator

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#2005832 1-May-2018 11:37

Delphinus:

jarledb:

I saw an insurance company claim the ACC only covers accident and not illness.

So I guess an insurance to take care of income if you get ill is important too?

Just ensure your hourly rate allows for overheads such as sick leave, annual leave, unbillable hours (admin, invoicing, chasing up invoices etc, marketing, networking, hardware costs (PC's etc)).

https://www.consultingsuccess.com/consulting-fees-calculator

This is something people everywhere underestimate when they are working out how much "more" money they are making.

afe66

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#2006174 1-May-2018 18:27

Remember pension repayments if leaving old employer kiwisaver plan.

bazzer

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#2006307 1-May-2018 22:30

jarledb: I saw an insurance company claim the ACC only covers accident and not illness.

Kinda does what it says on the tin, right?

kryptonjohn

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#2006309 1-May-2018 22:34

bazzer:

jarledb: I saw an insurance company claim the ACC only covers accident and not illness.

Kinda does what it says on the tin, right?

Yep. And sometimes they take a bit of convincing that an injury is not an illness. If an injury might be degenerative they'll try and wriggle out of it.

bazzer

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#2006313 1-May-2018 22:44

kryptonjohn:

bazzer:

jarledb: I saw an insurance company claim the ACC only covers accident and not illness.

Kinda does what it says on the tin, right?

Yep. And sometimes they take a bit of convincing that an injury is not an illness. If an injury might be degenerative they'll try and wriggle out of it.

Which is fair enough. Why would they want to pay for an injury that is not the result of an accident?

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