Gig workers are part of a flexible and on-demand workforce who do multiple short-term jobs gigs , and can be anyone from part-timers looking to make extra money from a second or side job to full-time freelancers. The gig economy extends across most industries and roles. The same rules that apply to gig workers apply to contractors, freelancers, self-employed people and casual workers. Gigs are often infrequent, and many casual workers only work once or twice a month.
This kind of work is increasingly chosen by young people, and is a growing type of self-employment. Many self-employed people taking on casual or gig work are sole traders.
There are other business structures you can choose — use our Choose Business Structure tool to help you decide. For tax purposes, the rules that apply to you are the same as those for contractors or self-employed people. Starting a business external link — Inland Revenue. This describes the business activity you do, and is the basis for your ACC levy.
Video: Income and provisional tax external link — Inland Revenue. Becoming a sole trader. Contractors receiving schedular payments external link — Inland Revenue. Tax rate estimator for contractors external link — Inland Revenue.
Income tax rates external link — Inland Revenue. Secondary tax codes external link — Inland Revenue. You can then claim a credit for the GST you pay on most of your business expenses. Many of your business expenses can be offset against your business income to help reduce your tax bill. We have information on claiming expenses that will help you understand what you can claim for and how to do it. Video: Claiming business expenses external link — Inland Revenue. Steve is careful to keep all his receipts, and makes sure his paperwork is in order.
Inland Revenue passes your BIC code, liable income or payroll, and your contact details along to ACC so they can invoice you for levies based on your business activities. One of the benefits of having an NZBN is that it allows you to share and update your business information with other businesses, including those that you do casual work for.
As more businesses get and use their NZBN, it will become easier to invoice and to pay bills. New Zealand Business Number external link. Offsetting expenses against income can help with your tax bill. Contractors who don't get their insurance and contracts right can face legal risks. Here's what to look for. Income from an SB tax code is taxed at Until the Inland Revenue Department update their computer system the only way to get around this is for people to file a tax return or request a Personal tax Summary from the IRD, or to apply for a special tax rate with the Inland Revenue Department.
The whole issue of payroll including tax codes, deductions including student loan, KiwiSaver and child support is a minefield and is extremely time consuming for small businesses to administer. While payroll programs do speed up the process we have found that sometimes even the computer gets it wrong, particularly when a bonus or other large wage payment goes over one of the income thresholds.
Care should always be taken with employees to ensure that they are paying the right amount of tax, student loan, KiwiSaver and other deductions. These cookies are required in order for our video functionality to work. When you save your YouTube cookies choice below, Revenue will save a cookie on your device to remember your choice.
This Revenue cookie is set as a session cookie and will be deleted once you close this browsing session. YouTube may set cookies directly according to YouTube's own cookies policy. Revenue will give your tax credits and rate band to that job.
If you work in two or more jobs at the same time, you can divide your tax credits and rate band between jobs. We will send an updated Tax Credit Certificate to you. Next: What to do if you get a second job. Published: 29 June Please rate how useful this page was to you Print this page. It looks like you have JavaScript disabled. Certain parts of this website may not work without it. Please enable JavaScript for the best experience.
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