Inland Revenue has launched a campaign to encourage tradies to get their tax back on track.
The construction industry is crucial to New Zealand’s economy and continues to grow. Inland Revenue spokesperson Richard Philp says that puts more pressure on the construction sector.
“We know businesses in the construction sector have struggled with increases in the cost and availability of materials, supply chain constraints and labour shortages over the last few years,” Richard Philp says.
“They’ve also been dealing with the pressures of running their businesses through the pandemic and the aftermath of recent cyclones.
“Despite these struggles the sector has continued to grow, fuelled mainly by large infrastructure and ‘shovel ready’ projects, free apprenticeships and trades training and an ongoing focus on housing stocks, particularly new builds.
“We also know around 50,000 customers within the construction industry have at least one outstanding return and/or some form of debt to Inland Revenue. So, we’ve developed a ‘toolbox’ – a one-stop-shop to help tradies get their tax affairs in order.
“Our data shows that under-declaring income, often via cash jobs, is prevalent in the construction sector. Some people actively avoid their tax obligations, while others may be simply struggling to keep up with the day-to-day grind.
“We’ve put appropriate resources and tools in an accessible, online format – the Tax Toolbox website – www.ird.govt.nz/the-tax-toolbox .
“Through the Tax Toolbox we encourage tradies to watch pre-recorded seminars, book a business advisory visit with us, or to talk to a tax agent.
“We also present core tax topics in a simple way, with links to more information on record keeping, expenses, income tax, GST, and employer obligations. We also encourage customers to make voluntary disclosures if they realise they’ve made any errors or forgotten any details off past tax returns.”
Richard Philp says the construction sector needs this help now.
“The construction sector has the highest amount of tax debt and customers in liquidation. It is also the most commonly reported industry through Inland Revenue’s anonymous information channel which shows the level of concern within the community.
“We want to help. So, there’ll be video, social, and online advertising directing tradies to the Tax Toolbox, along with in-store promotions at trade hardware stores, to help tradies nail their tax.”