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A quick non boating question....if I may


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#11 Above-the-Fold

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Posted 19 January 2020 - 06:39 PM

Doesn't it depend on what profession you are in?

 

When I went freelance after years on staff at a newspaper, I never again reached the the same absolute dollar amount. But my net income, after various deductions, was not much different from my wife's, who stayed at the paper. Depended on how much I worked, of course. And it was in Canada, so it might not apply directly; dunno what the tax laws are like here, but I got a few breaks.


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#12 wheels

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Posted 20 January 2020 - 05:24 AM

I don't know what requirements are in Canada, so I can't compare. The difference in what you do for income is affected in the area's of ACC payment and liability Insurance. The ability to claim expenses may seem like you are getting more in the hand, but remember that claiming only means you have spent it in some other way and the amount claimed is only the taxable amount.
     Years ago, an opposition to us had sold a customer a 1000m coil of line. The Customer came back to us to tell us he had gone for the opposition because the Guy had sold it to him at cost less GST, because the seller had said he can claim the GST back. We figured all we had to do was wait and the opposition would soon be gone. And they soon were.


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#13 Puff

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Posted 20 January 2020 - 12:54 PM

Mathematically you have to earn the same in 45 weeks as you do in 52 on wages so that is 16%. Add on employer ACC, variable, but say $1500 and an accountant if needed $600 and the increase based on $60000pa/40hrs takes it up to about 20% more.

 

But you may be able to claim some expenses that you have anyway, MVE, phone, use of home etc and if you can split the income with a non earning spouse then the savings are significant but be aware ACC limitations.

 

And the self employed pay tax at the same rate as employees and there should be no concerns about tax. Provisional tax is just self assessed PAYE. With planning, taxation should not cause any concern. You know how much tax you are going to pay, to get to 2 years down the track and have nothing set aside just means you're and idiot as opposed to the system failing


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