Have you had a customer ask for a cash discount? You know – so it doesn’t “cost as much” because it doesn’t have to go through the books. Who really pays for that discount? Tradies around the country who do undeclared cash jobs, discounted for their mates or simply to give the customer a good deal, are risking tax penalties or criminal convictions that could lead to prison – is it actually worth it?
Doing cash jobs for your mates or that client who wants a good deal is ok – as long as you’re still recording the cash received and including it in your books and declaring it as income as part of your annual tax return.
Not sure how to record the cash received in your accounting software? Give us a call and we can help!
Make sure that:
- You record every job, no matter how big or small
- If you’re registered for GST – charge it.
- You register your employees
- You declare all your income when you file your tax return.
If you’re already paying tax on all of your income – good job!
If not, it’s never too late to do the right thing. To correct prior period tax returns that have already been filed with IRD, get in touch with your tax agent or contact our team to help get you back on track.
More information can be found on Inland Revenue’s website.