Frequently asked questions

Do you have questions about tax, GST, or running your business? Here are clear, straightforward answers to the things small business owners and tradies ask us most.

How much tax should I be putting aside?

This depends on your business structure and profit, but as a rough guide, many sole traders should set aside 25–30% of profit for income tax and ACC. If you’re GST registered, you’ll also need to account for GST collected.

We can calculate a tailored percentage for you so you’re not guessing — and not getting caught short at tax time.

What Expenses can I claim?

You can generally claim business-related expenses such as:

  • Tools and equipment
  • Vehicle expenses
  • Home office costs
  • Phone and internet
  • Insurance
  • Subcontractor payments

The key rule in New Zealand is that the expense must be incurred in earning income. We’ll help make sure you claim everything you’re entitled to — without crossing the line with the Inland Revenue Department (IRD).

Do I need to register for GST?

You must register for GST in New Zealand if your turnover exceeds $60,000 per year. Even if you’re under that threshold, registering can sometimes be beneficial — especially if you have high setup costs.

We’ll review your situation and recommend the best option.

What’s the difference between a sole trader and a limited liabilitycompany?

A sole trader structure is simpler and cheaper to run, but you’re personally liable for debts.

A limited liability company is a separate legal entity, which can offer asset protection and potential tax advantages, but it comes with more compliance responsibilities.

Choosing the right structure can save you money and protect you long-term — so it’s worth getting advice before setting up.

Can you help if I’m behind on tax or bookkeeping?

Yes. It’s more common than you think.

Whether you’re behind on GST, income tax, or bookkeeping, we can:

  • Get your accounts up to date
  • Work out what’s owed
  • Help set up a manageable payment plan
  • Put systems in place so it doesn’t happen again

The key is addressing it early rather than ignoring it.

How often do I need to file GST returns?

Most small businesses file GST:

  • Every 2 months, or
  • Every 6 months (if eligible)

Some larger businesses file monthly.

We’ll make sure your GST is filed correctly and on time, so you avoid penalties and interest.

What happens if I miss a tax payment?

If you miss a payment, the IRD may charge:

  • Late payment penalties
  • Penalty Interest

The sooner you act, the better. In many cases, payment plans can be arranged with the IRD to reduce pressure. We can help you communicate with them and find a workable solution.

Do I really need accounting software like Xero?

You’re not legally required to use software, but it makes running your business much easier.

Platforms like Xero allow you to:

  • Track income and expenses in real time
  • Send invoices
  • Reconcile bank transactions
  • See how your business is performing
  • Manage your business from your mobile phone

For most tradies and small businesses, it saves time and reduces errors.

How much does an accountant cost?

Costs vary depending on:

  • Business size
  • Transaction volume
  • Whether you’re GST registered
  • Whether you’re a sole trader or company

Most small businesses pay anywhere from a few hundred to a few thousand dollars per year. The right accountant should save you more than they cost — through tax savings, better planning, and fewer mistakes.

Not your average accountants

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