Are you paying contractors or working as a contractor?
Do you pay contractors or are you contracting to another business?
From 1 April 2017 the rules have changed for how contractors pay tax on schedular payments. Some of the major changes are:
- Contractors can opt to have tax withheld from schedular payments (with the agreement of their payer) regardless of the work that they do. Prior to 1 April tax was only deducted before payment to the contractor for certain types of work.
- If you were receiving schedular payments before 1 April 2017 then you can now select the rate of tax to be deducted (subject to minimums determined by the IRD – on the IR330C form)
- If you work under a labour hire arrangement for a labour hire business you have to have tax deducted from your schedular payments. You can apply for a 0% special tax rate if you have a history of good compliance with the IRD.
For more information refer to the link below or contact us here at Skipper Lay.