Contracting in NZ

[Gonzo]

Crystal?

Oh yes.

Sorry that might have been a tad ambiguous. Um I *think* you can set yourself up as a sole trader (like a sparky or plumber), but you still need a business bank account for agency/client to bank salary into. However the downside to Sole Trader is that after one year you have to pay provisional tax - 1/3 of the way into year 2 you have to pay 1/3 of the tax calculated on the previous years earnings, then 2/3 into the year you have to pay another 1/3 of the tax. So you work for a year, pay no tax upfront, then in year two you not only have to pay a whole years tax but also tax in advance for that year. NP if you put tax money aside, but who does that? I prefer to use that interest free loan from the IRD to do other things, and stay in tax arrears (using this years income to pay last years tax).

Better to go form a ltd co, do the GST thing every 2-6 months, take whatever you need/want as drawings, use the rest of the money to do things like buy BP shares which will double in the next year, and just pay tax 8 months after the end of the previous tax year - around August/Sept i think for a normal April 6 to April 5 tax year (or is it march 31?, I can't remember, my accountants do all that cr*p)

The up-front tax payments thing is similar to how it is in the UK. It is a shock the first time it, but once you get past that it is no problem.

The difference is that higher rate tax payers in the UK have more tax to pay on the dividends that they pay themselves. In NZ they don't but the IRD have the power and the inclination to invalidate such arrangements if they believe that tax is being avoided. Tax avoidance cases back on table: IRD - Business - NZ Herald News Unlike the balls-up that was IR35 in the UK, the NZ IRD do have this power.

[Stan.goodvibes]

So, are you saying you have to use a limited company or not then?

Sorry that might have been a tad ambiguous. Um I *think* you can set yourself up as a sole trader (like a sparky or plumber), but you still need a business bank account for agency/client to bank salary into. However the downside to Sole Trader is that after one year you have to pay provisional tax - 1/3 of the way into year 2 you have to pay 1/3 of the tax calculated on the previous years earnings, then 2/3 into the year you have to pay another 1/3 of the tax. So you work for a year, pay no tax upfront, then in year two you not only have to pay a whole years tax but also tax in advance for that year. NP if you put tax money aside, but who does that? I prefer to use that interest free loan from the IRD to do other things, and stay in tax arrears (using this years income to pay last years tax).

Better to go form a ltd co, do the GST thing every 2-6 months, take whatever you need/want as drawings, use the rest of the money to do things like buy BP shares which will double in the next year, and just pay tax 8 months after the end of the previous tax year - around August/Sept i think for a normal April 6 to April 5 tax year (or is it march 31?, I can't remember, my accountants do all that cr*p)

Crystal?

[Stan.goodvibes]

Don’t give me culture
I’m not hearing you Rob,
I could buzz around like a beehive boy
But I’d like to see you do my job

.... Up Front with The Knobz dododo do do do do

Classic!

[meridian]

I think Robert Muldoon might have been right you know.

Don’t give me culture
I’m not hearing you Rob,
I could buzz around like a beehive boy
But I’d like to see you do my job

[Gonzo]

WTF? I have been contracting in NZ for years, except for 6 years in the UK. Sorry but the above is complete bollocks. Contracts are through agencies, as per the rest of the developed world.

Oh and you don't need an agency to contract - most companies/govt agencies will happily pay your ltd company, so have a look at the websites for the Inland Revenue, plus all the other govt offshoots like Trade and Enterprise NZ (where i just contracted directly to for the last 2 years) also kiwibank, Westpac, National Bank, ANZ, BNZ etc - they advertise positions themselves as well as going thru agencies.

WTF? #2. Yes, you need a ltd company, or you can be a sole trader.

So, are you saying you have to use a limited company or not then?


I think Robert Muldoon might have been right you know.

[Stan.goodvibes]

Sorry don't actually know much about the contracting, other than Auckland or Wellington would be your best bets for Private and Public sectors respectively. Can't imagine there's a single contract anywhere else in the country.

Public sector jobs are in Wellington, Private mostly in Auckland.

Oh and you don't need an agency to contract - most companies/govt agencies will happily pay your ltd company, so have a look at the websites for the Inland Revenue, plus all the other govt offshoots like Trade and Enterprise NZ (where i just contracted directly to for the last 2 years) also kiwibank, Westpac, National Bank, ANZ, BNZ etc - they advertise positions themselves as well as going thru agencies.

Wellington is more scenic but colder, Auckland is really GAC - Generic Asian City - apart from the super-clean harbour most of downtown could be any asian city in the world, in fact I think they should just rename it Bangkongshai and be done with it myself. But it's got cracking beaches within an easy drive, and a great climate!

[Stan.goodvibes]

a. A surprisingly large amount of work does not get advertised, it is handed out to contacts and relatives.

Contacts are everything here and the nepotism would embarrass a banana republic. In a very tight market it is just about impossible for foreigners to get a look in.

WTF? I have been contracting in NZ for years, except for 6 years in the UK. Sorry but the above is complete bollocks. Contracts are through agencies, as per the rest of the developed world. I know of three poms who got contracts last year during the DIRE period. And the agencies are MUCH more professional than the UK - no phishing, no fake jobs, no asking who your previous manager was etc. Contact the ones you see advertising on SEEK.

b. There is no need to use a Limited company, in fact there are reasons not to do so.

WTF? #2. Yes, you need a ltd company, or you can be a sole trader. Agencies as a rule won't pay to a personal bank account. The usual 185 day tax rule applies in NZ as in OZ and UK and Europe etc. Up to you. You can buy a company off the Companies website for like $100, and find an accountant nearby. Once you earn over around 45-50k p.a. (can't remember exactly sorry) you have to start charging GST, but there is no IR35 - I just take money out of my company as I need it as 'drawings', pay the GST every 2 months, then do end of year accounts.

Those rates don't sound so bad if you convert at the current exchange rate of 1GBP = 2.15NZD but the New Zealand Dollar is strong at the moment while the country has some of the highest interest rates in the world. I would expect that to move to more like 1GBP = 3NZD when the rest of the world starts raising interest rates again, at which point the rates don't look so good.

That is true at present. Historically rates are 1GBP = 3NZD or worse/better depending on perspective. When I sold my house in London in 2000 I got $3.80/pound. But going your way this is as good as its ever been right now.

You would do much better financially in Australia of course.

Now THAT is true, which is why I am in Sydney. $AU is a lot stronger than $NZ at present, the whole country and IT industry is booming, *and* better rates and less tax than NZ. Overall I'd say I'm 15-20% better off than I was in NZ beginning of the year (actually up about equiv. of NZ$30/hour).

My 2c - come to Oz, if you want to see NZ (it IS much nicer than Oz) then take advantage of cheap trans-tasman flights and go for holidays/weekends.

[nfoote]

And be less wet.

Depends how sweaty you get, I wouldn't recommend putting a Brit in a suit on a street corner in Sydney any time the suns out!

Kiwiland = UK climate inverted in the other direction (south colder).

Come on now, it gets hotter for longer than a few weeks and nobody complains when it hits 30!

Sorry don't actually know much about the contracting, other than Auckland or Wellington would be your best bets for Private and Public sectors respectively. Can't imagine there's a single contract anywhere else in the country.

[Mal P]

You would do much better financially in Australia of course.

And be less wet. Kiwiland = UK climate inverted in the other direction (south colder). But overall much prettier than Australia. But fewer crocs.

[Gonzo]

Any migrant Kiwi's on here know of good websites that:

a) Provide ads for jobs in NZ

b) Can provide general information on contracting in NZ

I am particularly interested in finding out more about rates, market status etc.....

TIA.

I am not a migrant kiwi, but,

a. Seek as others have said, just about everything that gets advertised gets put on there. A surprisingly large amount of work does not get advertised, it is handed out to contacts and relatives. See below.

b. There is no need to use a Limited company, in fact there are reasons not to do so. The Inland Revenue have noticed how many people are paid salary up to the higher rate tax band and are using other structures such as companies or trusts to divert the rest of their income to those where the tax is lower than the higher rate tax band. The Inland Revenue have the power to invalidate these diversions and make you pay up.

As far as the market goes, it is a relatively small market and suffers from extremes. Last year was dire, really dire. The market has turned now so the severe shortages are expected once again, although people have been saying that for a year now. Rates are still below their peak of a couple of years ago. There isn't such a huge extreme of rates here, at the moment you are looking at $60 per hour for junior developers to $100 per hour for senior project managers.

Contacts are everything here and the nepotism would embarrass a banana republic. In a very tight market it is just about impossible for foreigners to get a look in. That should be coming to an end shortly. I have heard stories of hiring managers going to London on recruitment drives in the past but that hasn't happened recently.

Those rates don't sound so bad if you convert at the current exchange rate of 1GBP = 2.15NZD but the New Zealand Dollar is strong at the moment while the country has some of the highest interest rates in the world. I would expect that to move to more like 1GBP = 3NZD when the rest of the world starts raising interest rates again, at which point the rates don't look so good.

You would do much better financially in Australia of course.

[Belle]

Try Trade Me for jobs. Try New Zealand IT Employment/Recruitment Agency - De Winter International for information on contracting. Look at Salaries IT New Zealand Top Wellington, Auckland Recruitment Company Specialising in IT - IT New Zealand JobsSearch for rates. I contracted for 10 years in Auckland and used Hays, Candle, Recruit IT and Sead - all good recruitment companies.

[Brussels Slumdog]

Search Linkedin

IF you try an advanced Search in Linkedin with the words "New Zealand" and "Project Manager" or "IT Recruitment Manager" you will come up with some agencies in New Zealand.
Send one of these agencies an email expaining exactly what you want.

[Moscow Mule]

SEEK - New Zealand's no. 1 jobs, employment, career and recruitment site

Can't help with the other stuff as seek is as far as I've ever got.

[Mustang]

Any migrant Kiwi's on here know of good websites that:

a) Provide ads for jobs in NZ

b) Can provide general information on contracting in NZ

I am particularly interested in finding out more about rates, market status etc.....

TIA.