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IR3 Question 23 Self-employed income

If you received self-employed income between 1 April 2018 and 31 March 2019, show it at Question 23.

Schedular payment income

Don’t show any schedular payment income at Question 23. This income is declared at Question 12. If you’re an ACC client or caregiver and received ACC personal service rehabilitation payments, please read the information at IR3 ACC personal services rehabilitation payments before you complete Question 12.

You can claim expenses and deductions against many schedular payments at Question 12C—see IR3 Question 12 Schedular payments.

Attribution rules

The attribution rule may apply where an individual provides services to an associated person (company, trust, partnership).

In particular, it can apply where the associated person sells those services on, principally to a third party.

To find out how to apply this rule, please read Tax Information Bulletin (TIB) Vol 12, No 12 (December 2000) and Vol 13, No 11 (November 2001).

Prepare a summary of details

You can use any of the following:

  • your financial records

  • the Farming income (IR3F) form for agricultural businesses

  • the Business income (IR3B) form for other businesses

  • the Financial statement summary (IR10) form.

Staple one of the above forms to page 3 of your return and print your profit (net income) in Box 23.

The Financial statement summary (IR10) is a short form of the financial statements of a business. Use an IR10 and speed up processing of the return. Inland Revenue don’t need a set of accounts if you use the IR10. You still need to complete a set of financial accounts and keep them in case Inland Revenue ask for them later. For help with filling out the IR10, see the IR10 guide.

Keep your receipts with your records in case Inland Revenue ask to see them too.

Providing childcare services in a home

Based on the Education (Home-Based Care) Order 1992 and/or the Licensing Criteria for Home-Based Education and Care Services 2008, Inland Revenue’s Determination DET 09/02: Standard-Cost Household Service for Childcare Providers sets out the types of expenditure generally incurred (standard cost) by individuals providing childcare services in their home.

But, if you’re a childcare provider who’s registered for GST, this determination doesn’t apply to you.

Individuals providing childcare services in their homes may use the standard costs (set out in the determination) or their actual costs and income for calculating their tax. If your childcare activities began part-way through the year, calculate your tax from that date using either the standard costs or actual costs. See the Tax Information Bulletin (TIB) Vol 17, No 4 (May 2005) for details.

Show your childcare income at Question 23 if:

  • the determination applies to you, and your childcare taxable income is greater than nil, after standard costs have been deducted, or

  • you keep full records of your childcare income and actual expenses, and you make a taxable profit or loss after expenses have been deducted.

If you need help deciding whether you need to declare childcare income using standard costs, please call Inland Revenue.

You can’t offset any loss calculated using standard costs (see the determination) against other income in any income year.

Childcare services not under the Education (Home-Based Care) Order 1992

These childcare providers can’t use the determination. They must keep full records of actual income and expenses and are liable for tax on their total income after actual expenses are deducted for childcare services provided.

At Question 23 show any childcare taxable income or loss after expenses have been deducted.

ACC levies

Income from self-employment is liable for ACC levies which ACC will invoice you for.

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