For many self-employed tradies, understanding the w88 online sports betting system can be complex, time-consuming, and costly - especially if you’re trying to do it all yourself!

A few simple errors can make the end of the financial year more stressful than it needs to be, resulting in precious time lost and more taxes paid than strictly necessary. This is something we see time and time again at Hnry. Luckily, the most common missteps are easy to avoid, if w88 online sports betting know how.

Get ahead of the curve this financial year by avoiding the top mistakes tradies make when filing their taxes.

Mistake #1 - Registering as a company

Many tradies mistakenly believe that they need to register as a company to protect themselves from personal debt liability, take on bigger projects, or hire subcontractors. But this isn’t necessarily the case.

In fact, unless w88 online sports betting’re planning to raise capital or bring on business partners, a company structure might actually leave w88 online sports betting worse off than if w88 online sports betting’d remained a sole trader. Here’s why:

Companies don't necessarily protect w88 online sports betting from personal liability for company debts

As a sole trader, w88 online sports betting are personally liable for all debts incurred. That probably doesn’t come as a surprise.

In contrast, as a shareholder of a company, w88 online sports betting are generally only liable for money w88 online sports betting’ve borrowed from the company. This usually means shareholders are not personally responsible for company liabilities, and personal assets will be protected.

BUT there are a couple of scenarios where a company doesn’t provide personal protection, and personal assets are on the hook:

Personal guarantees:

• With small companies, it’s common for banks or suppliers to ask for personal guarantees.
• If a personal guarantee is in place, a company structure essentially provides no protection for personal assets.

Reckless trading:

• Directors may be found personally liable if the company is engaging in “reckless trading.”
• Reckless trading is essentially running your business in a way that is likely to create a substantial risk of serious loss to the company's creditors.

Because of these exceptions, setting up a company may end up being more trouble than it's worth in time, money, and administration.

Companies cost more to set up
Setting up as a sole trader is much simpler and less expensive than setting up a company. For starters, there are no legal or registration fees whatsoever. All w88 online sports betting need is:

• your personal IRD number,
• any government licences and permits your business needs to operate,
• and any qualifications or registrations your trade requires w88 online sports betting to have.

Conversely, if w88 online sports betting want to incorporate a company, w88 online sports betting’ll need to:

• reserve a company name ( + GST),
• apply to incorporate a company (8.74 + GST),
• provide contact details for your company,
• register for an IRD number,
• register all your company’s directors,
• register shares and shareholders.

If it’s just w88 online sports betting owning and operating your business, registering as a company is just not worth the extra time, money, and paperwork.

Companies require more financial admin
If the added fees and legwork aren’t deal-breakers for w88 online sports betting, companies also have far more rigorous reporting requirements.

While sole traders list all their income and expenses on their personal w88 online sports betting returns, as a Shareholder and Director of a company, you’ll need to:

• File annual company returns with the Companies Office (including the names and addresses of all Directors on their publicly-searchable register).
• Calculate, pay, and file company Income w88 online sports betting (IR4) returns annually.
• These are far more complex and intensive than personal Income w88 online sports betting (IR3) returns.
• Manage company ACC levies and payments.

Each of these is in addition to any w88 online sports betting responsibilities you have as an individual. You’ll still need to manage your individual w88 online sports betting returns, ACC levies (where not covered by the company), and any other personal w88 online sports betting and compliance requirements.

In short: if w88 online sports betting’re a sole trader, a company structure requires w88 online sports betting to submit almost double the paperwork for little to no benefit.

Accessing money is more complicated in a company structure

As a sole trader, w88 online sports betting can draw money directly from your business account. The IRD doesn’t distinguish between personal and business funds, and there are no admin requirements.

To access company earnings, shareholders must complete a formal legal transaction. This can be done by paying wages, declaring dividends, or making personal drawings. Each of these options comes with their own paperwork, and w88 online sports betting implications.

On top of this, if w88 online sports betting’re not meticulously recording business expenses, valid expenses may be considered personal drawings as well.

It’s an added layer of complexity that simply isn’t necessary.

Mistake #3 - Not setting enough aside for taxes

Most sole traders experience an unexpected w88 online sports betting bill or shortfall in their career. To avoid getting into this situation, it’s essential that you set the right amount of money aside from every payment you receive.

To do this correctly, you’ll need to have a reasonable estimate of how much income you’ll earn in the w88 online sports betting year. If you have a good estimate, then any calculator worth its salt will be able to tell you how much to set aside from every payment for income w88 online sports betting.

But, of course, there’s more than just income w88 online sports betting.

On top of income w88 online sports betting, you also need to set aside:

• 2-4% of your income for ACC levies. The exact amount w88 online sports betting’ll owe depends on your line of work
  • it’s higher for higher-risk occupations.
• 15% of every invoice for GST if w88 online sports betting’re above the ,000 self-employed income threshold.This is an extra charge for your client, not a deduction from your pay.
• 12% of every dollar w88 online sports betting earn above the minimum threshold (currently ,268) for student loan repayments (if w88 online sports betting have one).
• contributions to your KiwiSaver account. w88 online sports betting’ll want to make sure w88 online sports betting’re contributing at least ,042.86 before June 30th every year in order to receive the full government contribution of 1.43.

Proactively setting aside the right amount of taxes throughout the year will give you peace of mind. No more nasty w88 online sports betting-bill surprises that force you to dig into your savings - or worse, default and incur penalties.

What w88 online sports betting get with Hnry

As a sole trader, Hnry will automate your w88 online sports betting obligations so you’ll never need to think about w88 online sports betting again.

Automatic w88 online sports betting calculations and payments
Whenever you get paid, Hnry automatically calculates, deducts and pays all of your taxes on your behalf, so you’re always up to date on your w88 online sports betting payments. Income w88 online sports betting, GST, ACC levies, student loans, even KiwiSaver - all calculated and paid as you earn!

All expenses reviewed and w88 online sports betting returns filed by our accountants
As part of the service, Hnry’s accountants will approve and claim your expenses for w88 online sports betting and file your returns whenever they’re due.

As a sole trader, w88 online sports betting can be confident that your taxes are filed correctly - and on time!