ACC recently announced a change to the way they invoice those that are self-employed.
The main change is that instead of a provisional and final invoice, those that are self-employed will now only get one invoice from ACC, after the levy year has finished and based on their actual earnings.
The new rules came into effect 1 December 2019 and see overseas businesses selling goods valued at under $1000 (excluding GST) having to add GST to their invoices and pass it on to the New Zealand Government.
Some of you may have received an email from IRD advising that they will be contacting Tradies and encouraging them to include ALL income through their income tax and GST returns. This is a timely reminder to everyone that IRD is cracking down on ALL "cashies" and IRD has various ways of finding out about these jobs.
Undeclared cash jobs do have negative consequences resulting in tax penalties and/or a criminal conviction. You are required to keep all readable invoices and GST tax receipts for 7 years (80 years if you are a trust). This means that relying on the original is probably not an option. If you would like to discuss alternative record keeping options, please do get in touch.