Plain language law

New Zealand law explained for everyone

Accident Compensation Act 2001

Preliminary provisions

14: Earnings as a self-employed person

You could also call this:

"How money is counted when you work for yourself"

When you work for yourself, your earnings are calculated differently than if you work for someone else. Your earnings as a self-employed person are figured out for each tax year.

To work out your earnings, you start with the money you make that depends on your own efforts. This is called your income. Then, you subtract any expenses that are allowed under the Income Tax Act 2007. The result is your earnings as a self-employed person.

It's important to know that this doesn't include any money you make as an employee or as a shareholder-employee. Those are counted separately.

The Income Tax Act 2007 has rules about what counts as income and what expenses you can subtract. You need to follow these rules when working out your earnings as a self-employed person.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM100638.

Topics:
Money and consumer rights > TaxesWork and jobs > Worker rights
Previous

13: Earnings of private domestic workers, or

"How the ACC counts money earned by people who work in other people's homes"

Next

15: Earnings as a shareholder-employee, or

"How the law calculates money you make as an owner-worker in a company"

Part 1Preliminary provisions

14Earnings as a self-employed person

  1. Earnings as a self-employed person, in relation to any person and any tax year,—

  2. means A minus B, A being the amount described in subsection (2) and B being the amount described in subsection (3); and
    1. does not include any earnings as an employee or earnings as a shareholder-employee.

      1. A is the amount of income (if any)—

      2. that the person derives in the tax year for the purposes of the Income Tax Act 2007; and
        1. that is dependent on the person's personal exertions.

          1. B is all amounts that the person is allowed as deductions for the purposes of the Income Tax Act 2007 because of the person deriving the income described in subsection (2).

          Notes
          • Section 14(1): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
          • Section 14(2): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
          • Section 14(2)(a): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
          • Section 14(2)(a): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
          • Section 14(3): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
          • Section 14(3): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).