Tax for contractors

Tax for IT contractors

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Is a contractor a member of staff or a freelancer?

The UK Government announced a repeal of the IR35 tax rules from April 2023. These relate to self-employed status when you work for one primary employer.

Is there potential for the same change to happen in New Zealand?

What’s the main issue?

The Mini-Budget contained the massive news that IR35 reform of April 2017 and April 2021 is going to be repealed from April 2023. From this date, workers providing their services via an intermediary will once again be responsible for determining their employment status. And [they will be responsible for] paying the appropriate amount of tax and National Insurance contributions.

Contractor UK

A contractor can now decide whether they are “on payroll” or “off payroll”. It’s important because many of us offer our work services to employers through third party companies, we are not all employees working on a limited term employment contract.

Is this because of Uber?

A lot of the media discussion has centred around whether delivery drivers are employed or self-employed. The implication for employers is the amount of tax, ACC and benefits they would save if staff are deemed not to be employees.

The same could apply to the contracting sector.

Join the discussion

Meet Peter Taylor from BDS Accountants at our IT Contractors Meetup on 26th October to ask him the hard questions!

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