Do your bit to help NZ recover, help drive the recovery
The construction sector was supported through COVID-19 with Government initiatives. Taxes go towards recouping the costs of these initiatives like the Wage Subsidy, Small Business Cashflow (Loan) Scheme and Working for Families as well as funding New Zealand’s broader economic recovery. Tradies who don’t pay their full taxes and don’t declare their cashies aren’t meeting the obligation we all have to contribute our fair share.
Make sure that you:
- record every job, no matter how big or small
- declare all your income when you file your tax return
- register as an employer if you’re employing staff
- register for GST when your annual turnover is more than $60,000 (if you're already registered for GST, you must charge it).
Can cash jobs really be tracked?
If two tradies work together and one declares a job the other doesn't, they can be dobbed in without realising it. If we audit one person, it might indicate another business or contractor that needs to be audited. Also, there's always a chance of a random audit.
We can see when tradies buy supplies, such as paint, carpet or timber without a corresponding declared job. We can also access information held by other Government departments, banks, loyalty cards, casinos and many other organisations to make sure all income is being declared.
It's okay to do cashies - you just need to declare them on your annual tax return.
Putting your past tax returns right
If you've left some income off your tax return, tell us now, rather than waiting for us to find out some other way.
By making a full voluntary disclosure, you may have your penalties reduced by up to 100%, you may avoid prosecution and you may retain your good business reputation.
If you choose not to tell us, you risk facing financial penalties, possible prosecution in court, and damage to your reputation.
Know someone who's not contributing their fair share?
You have an important role in keeping the construction sector fair for all. If you know someone who is doing undeclared cashies or paying less tax than they should, you can let us know confidentially.
It's never too late to do the right thing
If you need help putting your returns right, please contact your tax agent.
If you'd prefer to talk it through with us, you can make an appointment with one of our Community staff - we'll even come to you if you prefer.