The Inand Revenue are running a campaign about undeclared cash jobs, especially focusing on the construction industry. You may have already seen communications about this and there are some key factors you need to be aware of if you have done cash jobs.
Here is what you need to know:
1. Undeclared Cash Jobs are a Tax Crime.
Whether it's you or your tax agent preparing your upcoming GST and income tax return, it's important to remember that if you've done cash jobs - big or small - and you don't declare them, you can be hit with tax penalties, or criminal convictions that could lead to prison. It’s simply not fair on those that are doing the right thing.
It's okay to do jobs for cash or for your mates as long as you record them and declare the income when you're filing your annual tax return. Make sure that:
- you record every job, no matter how big or small
- if you're registered for GST you charge it. You must be registered for GST when your annual turnover exceeds $60,000
- you declare all your income when you file your tax return.
2. Putting your past tax returns right
If you've left some income off your tax return it's best to let us know now, rather than wait for us to find out some other way. By making a full voluntary disclosure you may benefit by:
- Not being prosecuted in court.
- Having your shortfall penalty reduced by up to 100%.
Choosing not to tell us may lead to:
- late payment penalties
- shortfall penalties, and
Give us a call on 0800 236 446 if you need help disclosing cash jobs for previous years.
3. Inland Revenue are getting smarter in their investigations
Using more tactics that ever before, the Inland Revenue are getting smarter at finding people (especially in the construction industry) who are not declaring all their income. This includes asking people to confidentially contact the IRD if they know of someone not playing fair. It is important you are upfront about all of your income each year and tell us about any cash jobs you have done so we can ensure your GST and tax returns are complete.
If you would like further help or to talk to one of our team about anything in this email, please call us on 0800 236 446.