As an independent contractor earning more than $60,000 annually, you will need to register for GST. Read more on how this works as a Mycare worker.
When do I need to register for GST?
As soon as you think you'll earn over $60,000 in 12 months.
You are able to register even if you are not earning this amount, a benefit for voluntary registration is you may be able to claim a GST refund (it can work for you if you have a lot of expenses but not much income). Make sure to view the pros and cons of voluntary registration before registering.
How to register?
You can register on your myIR - Register for GST
There is some documentation you will need before registering, make sure to view the link above for all the information on getting set up.
How it works/your responsibilities?
Once registered for GST you need to:
- charge GST to your customers
- file GST returns
- pay any GST you owe to the IRD by the due date
- keep GST records
Read more: Register for GST & Business.govt.nz
How does it work with Mycare?
There isn't anything extra you will need to do on Mycare apart from making sure your hourly rate is inclusive of the 15% GST amount.
Then it is a matter of keeping aside your GST, and paying it in line with your GST return, using the return dates that you have set with the IRD
It is your responsibility to negotiate rates with your client.
- Make sure to have GST in mind with initial negotiations and your advertised rates on your profile
- You are able to renegotiate current rates with your clients. However, the client is not obligated to agree to these requests
Claiming GST on Mycare service fee
You should be able to claim GST on your Mycare service fee. You can download service fee invoices by selecting the paid visit within the Visits tab on your Mycare account, then where you usually see the 'Submit' button you will now see a 'View Invoice' option.
You can only download these invoices on an individual visit basis.
However, you should only need to print/have a copy of the invoice/s if the invoice is over $50 or if the IRD asks for proof.
Read more here: GST as a business
Need extra support?
- IRD - Further questions on eligibility, registering and GST returns
- Hnry - Online tax agent that can help you with tax payments and GST for a low cost