Disclaimer: this post contains referral links. I will receive a small commission if you sign up to Hnry.
It’s coming up to tax season and if you are a freelancer, or sole trader, you know what it’s like to wear all the hats to run your business. Customer service, marketing, content creator, web developer, HR, PR, copywriting, graphic design, you name it – you’ve gotta do it. But wait – that’s where Hnry comes in because they can be your affordable accountant.
I am self-employed and earn income from my social media marketing business, and from brand partnerships or photography. Whether you’re starting off in your service-based business, or you’re growing as an influencer, Hnry is the perfect solution to manage your taxes.
But I hear you, “why do I have to pay tax?” It’s a legal requirement to pay tax on all of your earnings. There is no tax free threshold. Here’s what IRD says:
If you’re self-employed you use your individual IRD number to pay tax. You pay tax on net profit by filing an individual income return. You can claim back expenses for business activity that you carry out. You need to register for GST if you earn over $60,000 a year.
As noted above, you only pay tax on any “net profit”. This means that if you are spending money towards your business (photography gear, online subscriptions, sub-contractors, etc), you deduct this from your earnings and only pay tax on your profit. Sounds great? That’s where Hnry comes in!
If you’d like to know how much income tax you’ll have to pay, here is an easy to use calculator from Hnry.
As a sole trader, it can be time-consuing and complex task to manage your taxes – from calculating your income tax and GST to filing your returns and keeping track of your expenses, there are so many aspects of tax management that can be confusing. This is where Hnry can comes in to save the day!
Hnry acts as your “tax agent” and pay any taxes or ACC that you owe directly to IRD. They also do this in a pay-as-you-go so that you’re not having to pay income tax in a lump sum at the end of the year – instead, you pay a little bit off every payment you receive (similarly to the way paye is taken off your paycheck at a regular job).
Here’s five reasons I love using Hnry to manage my taxes
1. Hnry is designed specifically for sole traders, freelancers, and contractors.
This means that it understands your unique needs and challenges, and can provide tailored support to help you manage your taxes effectively. It’s easy to calculate your income tax and GST, and file your returns on time, without having to worry about complicated tax rules and regulations. I also love Hnry’s “allocation” feature, where you can split off payments into separate accounts, for example, part of your income can be paid to Kiwisaver, a savings account or Sharesies.
2. Hnry is easy to use and saves you time.
With Hnry, you can automate tasks, like invoicing, expense tracking, and record keeping. They will even follow up with unpaid or overdue invoices. This frees up your time, allowing you to focus on your core business and smash your goals. Hnry also offers a user-friendly platform that makes it easy to track your income and expenses, and provides real-time tax calculations and insights.
3. Hnry offers comprehensive support and advice.
I have utilised their customer support chat on several occasions and they have helped me navigate specific issues. Hnry offers expert support and advice to help you navigate any hurdles, and can provide guidance on everything from tax deductions, obligations or IRD audits, tailored for freelancers and sole traders.
4. Hnry can help you to save money.
By automating many of the tasks associated with tax management, Hnry can help you to reduce your accounting and bookkeeping costs. It can also help you to maximise your tax deductions and credits, which can lower your tax bill and improve your overall financial position. If you are starting out, using Hnry is so much more affordable than hiring an accountant as they only charge 1% on your transactions. This model means that you only pay Hnry when you also earn!
5. Hnry offers peace of mind.
This is my 2nd tax season using Hnry and I absolutely love it. You can rest assured that your taxes are being managed correctly and on time when you file with Hnry. This can help to reduce your stress and anxiety around tax season, and allow you to focus on your business and personal goals.
Call me a nerd, but I enjoy using Hnry so much that now I actually look forward to tax season!
Hnry is a super powerful tool for managing your taxes, and an incredible team that offer expert advice and tailored support. Save time, save money and sleep well at night knowing that your taxes are in the hands of the professionals.
If you have any questions at all, send me a message and I would love to support you with you hassle-free tax return!