Sole trader? You don’t want to miss this
Nobody enjoys paying tax, and if you are self employed it can be a hassle at best and a nightmare at worst.
Traditionally, the options have been to do it yourself or use an accountant. Accountants are valuable, especially for businesses, but they can be costly for sole traders.
That is where Hnry comes in. We were impressed enough to share it with every sole trader and contractor we work with.
Finsol director Gareth Dobson puts it this way: Hnry is a convenient, cost effective tax compliance service that gives Kiwis confidence in business. It fills a real gap for contractors and sole traders, who would otherwise pay an accountant for services they may not need.
How it works
Hnry is different from accounting software such as Xero or MYOB. It is an online service that handles tax from start to finish for sole traders and contractors.
When you sign up, you get your own Hnry bank account for customers to pay your invoices into. Every time you are paid, Hnry calculates, deducts and pays your income tax, GST, ACC, student loan and KiwiSaver contributions, then passes the rest to you.
Hnry also becomes your tax agent. It files your returns and deals with Inland Revenue and ACC on your behalf, and the team is available to answer questions.
Simple to use
The platform is clear and easy to use. The home page shows your recent earnings and expenses, and you can send invoices from Hnry or create your own.
If you also earn PAYE income from an employer, you can add it so the tax on your self employed income is correct. Upload expense receipts as you go, and Hnry reviews them and applies the tax relief.
Hnry may not suit business owners with more complex situations. For many sole traders and contractors, it is a complete solution to tax.
What it costs
When this article was written, Hnry charged 1% of your self employed income each time you were paid, capped at $2,000 a year, with no subscription or signup costs. Check Hnry’s website for current pricing.
What this means in practice: using a service like Hnry from the start saves time and avoids surprise tax bills, because everything is paid as you go.
Other things to sort when you work for yourself
Once your tax is sorted, look at the rest of your financial needs.
ACC Extra: gives you certainty over your ACC cover and levy each year, and makes future claims simpler. See our income protection and ACC Extra page.
KiwiSaver: self employed KiwiSaver contributions help you save for your first home or build your retirement balance.
Health insurance and income protection: personal insurance protects your most valuable assets, your health and your income.
How Finsol can help
We help sole traders and contractors set up the right ACC, KiwiSaver and insurance from day one.
Call us on 0800 346 765 or book a free consultation.
Finsol is a financial advisory business founded in Hawke’s Bay in 2010, looking after more than 6,000 clients across New Zealand. This article is general information only and does not take your personal circumstances into account. Check Hnry’s current terms and pricing before signing up.
