No one particularly enjoys paying tax, and if you’re self-employed, it can be a hassle at best and a nightmare at worst.
Traditionally the only options for tax management have been to bravely DIY or enlist an accountant. While accountants can be incredibly helpful – especially for businesses – they can be costly for sole traders.
Enter: Hnry. We were so impressed by Hnry’s offering that we consider this an important public service announcement to all sole traders and contractors. Finsol Director, Gareth Dobson, was particularly wowed.
“Hnry is a convenient, cost-effective digital tax compliance solution that gives Kiwis confidence in business. It has filled a much-needed gap for contractors and sole traders where typically they’d have gone to an accountant and paid excessive fees for services and advice they may notrequire.”
How does it work?
Not to be confused with accounting software like Xero or MYOB, Hnry is an online platform that offers an end to end accounting service for sole traders and contractors.
When you sign up to Hnry, you receive your very own unique Hnry Bank Account for your customers to pay their invoices into. Here’s the cool part:
Every time you get paid, they automatically calculate, deduct and pay exactly the right amount of your Income Tax, GST, ACC, Student Loan and KiwiSaver contributions instantly, before passing your money on to you.
That’s right; they pay your tax for you as you go. How’s that for peace of mind?
Hnry becomes your tax agent, filing returns and representing you on your behalf to the IRD and ACC. The Hnry team are always on hand to chat and answer questions.
User friendly, simple, effective.
The website is clear and easy to use, and the home page offers a snapshot of your recent earnings and expenses via graphs. You have the option of sending your invoices directly from Hnry, or you can create your own and send them manually. Any payment that comes into your personal Hnry bank account is automatically taxed.
If you’re also receiving income from somewhere else – like PAYE from an employer – you can add income sources into Hnry to ensure you’re paying the right amount of tax on your self-employed income. Upload your expense receipts as you go and the Hnry team will review them and apply immediate tax relief to your income. Easy peasy.
For business owners and more complex situations, Hnry may not be the right fit. But for a large number of sole traders or small business owners, it’s a complete solution to tax management.
How much does it cost?
Hnry works on a pay as you go structure, deducting 1% of your self-employed income each time you get paid. Fees are capped at $2,000 a year. There are no subscription, signup or hidden costs. It’s super simple and affordable.
Making the leap to working for yourself is exciting – and a little daunting. Using tools like Hnry from the get-go will help you maximise your time on the job. You’ll also avoid getting caught out with surprise tax bills because everything is paid as you go. Genius.
Now that you've got that niggly tax stuff sorted, you may want to assess some of your other financial needs:
- ACC Extra: to streamline future ACC claims and give you surety of your ACC levy each year.
- Self-employed KiwiSaver: to help save for your first home or maximise your retirement balance.
- Health Insurance and Income Protection: to protect your most valuable assets - your health and personal cash flow.
Shoot us a few details here if you'd like to expore your options.
While we’re insurance, home loan, KiwiSaver and investment experts, our blog posts are for general information purposes only and are not intended as financial advice. If at any stage you need personalised advice, get in touch on 0800 346 765, or email finsol@finsol.co.nz.
