As an independent contractor earning business income, it's essential to file your Individual Income Tax Return (IR3) at the end of each financial year. The financial year concludes on the 31st of March annually.
Filing Process and Due Date
The IR3 form can be conveniently completed online through your myIR Secure Online Services account. If you fill out your IR3 online (rather than using the paper form), any employment income or contractor income such as Mycare, where you have had tax paid on your behalf, will be pre-populated for you. (You can also see this income throughout the year, by logging into your myIR account, navigate to the "Income Summary" section and select the relevant income period to view)
The due date for filing an income tax return is the 7th of July, unless you have a valid extension or a tax agent who is exempt from this requirement.
Understanding Your Income from Mycare
Your income from Mycare will appear under "Schedular Payments" in your income summary.
Mycare assists you in meeting part of your tax obligations by deducting a fixed 10% withholding tax from your pay. However, this withholding tax may not fully cover your tax obligations, particularly if you've worked extensive hours, have a higher pay rate, or have other income sources.
Please note that your Mycare income will be listed under the name "PAI2" and not Mycare in your income summary.
Claiming Business Expenses
The time of filing your IR3 is also when you can claim the business expenses you've recorded throughout the year.
Vehicle Expenses
"If you have a vehicle that is only used for business purposes, you can claim the full running costs as a business expense. If you use your vehicle for both business and personal trips you will need to work out how to allocate costs correctly. Travelling from home to work is a personal trip." -
Read More here- IRD Vehicle expenses
Further Assistance and Resources
For more information on filing your IR3, you can read more here or contact the Inland Revenue Department (IRD) for any queries on the filing process.
For personal finance-related questions or if you seek professional accountancy assistance, we recommend reaching out to Hnry. See below an article explaining Hnry as well as a referral discount code for signing up as a Mycare worker.