In our Startup Daily blog post this month, we look at Contractors and Tax and the application of the 80/20 rule.
When you make the big move to go out on your own, you will need to be aware of the tax issues that surround contractors as you could be taxed differently to how you thought you would be. So what are some of the big issues you should be aware of?
What is Personal Services Income?
If 80% of your income comes from one client (including their related entities), you may find that you fall within the Tax Office’s Personal Services Income Provisions. Personal Services Income is where the majority of your income is earned by your personal effort or skill. As an example, think an IT contractor who mainly contracts to one client. Continue reading “Contractors and Tax: What is the 80/20 Rule?”
