Expanding the business (For businesses and employers)

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For businesses and employers: Running a business

Expanding the business

Your business may expand or change over time. As a result, you may have new tax obligations that did not apply when you first started out. You may need to:

register for goods and services tax
- when your taxable activity has produced or is expected to produce an annual turnover of more than $60,000
- using the online registration page or downloading and completing a printable GST registration (IR360) form.
register as an employer
- when you start employing someone
- using the online registration page or downloading and completing a printable Employer registration (IR334) form.
begin filing your Employer monthly schedule (IR348/EMS) and Employer deductions (IR345/EDF) forms electronically
- when your gross annual PAYE deductions are $100,000 or more using the secure and convenient electronic filing system - ir-File.
pay your PAYE twice-monthly
- when your gross annual PAYE and employer superannuation contribution tax (ESCT) is $500,000 or more. You should submit your Employer deduction form (IR345/EDF) using ir-File and pay electronically as detailed in our Making payments (IR584) guide
- by informing us of the change by phone or letter.
register for fringe benefit tax (FBT)
- as soon as you start providing fringe benefits to your employees
- using the online FBT election form or downloading and completing a printable Fringe benefit tax election (IR414) form.

Changing the way you operate your business

It may also be in your interest to change the way you operate. For example, you may be a sole trader wishing to expand and looking to establish a partnership or company. You may find it helpful to discuss your options with your accountant or lawyer.

To change the way you operate, follow the procedure for establishing a partnership or company. See the section "Starting a business". You may need to arrange for the sale of your business as a going concern to the new partnership or company.

You must also contact us within 21 days of making a change to your business operation. We will then update our relevant tax records for your business.