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Offering a cash discount to a client or doing a job for a mate might have left you flush with cold hard cash, but do you actually need to declare it? The answer is yes. Some tradies think that a little bit here and there won\u2019t matter, but it\u2019s better to get it all straightened out rather than having it come back to bite you later.<\/span><\/p>\n

Can cash jobs actually be tracked?<\/strong><\/p>\n

The IRD sees more than you think, and you don\u2019t want to be the one letting the team down by not contributing your fair share.\u00a0<\/span><\/p>\n

When you buy supplies without a corresponding declared job, the IRD can see this and it\u2019ll raise suspicions.\u00a0<\/span><\/p>\n

And if you\u2019re working together with another tradie who declares the job in their taxes and you don\u2019t, you could end up in a sticky situation.\u00a0<\/span><\/p>\n

Undeclared tax could have more negative consequences than you think. Your financial statements can appear to be less than they should be, which could have the bank asking questions if you ever need to get a loan. You could also receive tax penalties or a criminal conviction, which is not ideal.<\/span><\/p>\n

I have undeclared cash jobs – can I fix this?<\/strong><\/p>\n

It\u2019s never too late to get everything up to scratch. If you need a hand, our mates over at Haven Accounting can put you right. It\u2019s better to be safe than sorry, and by making a full voluntary disclosure to the IRD, you may have your penalties reduced by up to 100%. You\u2019ll also keep up your good business reputation and avoid any court formalities.<\/span><\/p>\n

Should I stop accepting cashies?<\/strong><\/p>\n

Accepting cash jobs isn\u2019t a problem as long as you\u2019re declaring them at the end of the day. You\u2019ll just need to keep a record of the amount you received in your books and declare it as income as part of your annual tax return.<\/span><\/p>\n

What are my tax obligations?<\/strong><\/p>\n

If you own a tradie business and want to make sure you\u2019re getting everything right, make sure that you:<\/span><\/p>\n

\n
• Record every job, no matter how big or small<\/span><\/li>\n
• Declare ALL of your income when you complete your tax return<\/span><\/li>\n
• Register as an employer if you have staff<\/span><\/li>\n
• Register for GST if you\u2019re earning more than $60,000 a year<\/span><\/li>\n
• Charge GST if you\u2019re already registered<\/span><\/li>\n<\/ul>\n

  [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row el_id=”related-post”][vc_column][vc_custom_heading text=”Related articles” font_container=”tag:h2|text_align:center|color:%2313143e” use_theme_fonts=”yes” el_class=”title my-5″][vc_basic_grid post_type=”post” max_items=”4″ element_width=”3″ orderby=”rand” item=”918″ grid_id=”vc_gid:1619471051058-8764665f-ccaa-2″ el_class=”related-posts mx-auto mt-3″][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

  [vc_row][vc_column][vc_row_inner el_class=”container”][vc_column_inner][vc_column_text] Offering a cash discount to a client or doing a job for a mate might have left you flush with cold hard cash, but do you actually need to declare it? The answer is yes. Some tradies think that a little bit here and there won\u2019t matter, but it\u2019s better to get it […]<\/p>\n","protected":false},"author":1,"featured_media":4443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"acf":[],"yoast_head":"\n