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Addding PAYE income to calculate expected GST

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motherlodegames
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Addding PAYE income to calculate expected GST

Hi,

 

Hoping you can help. Bit of a noob of the system. I have a 'day' job with pays PAYE. I have a side income which I'm trying to work out how much tax I have to pay back in my GST return.

 

Although I've captured all of my earnings and outgoings from this side job, I can't seem to find anywhere I can add by PAYE earnings which will effect the amount of tax I need to pay back, which will be higher as my day job pushes me in to the higher tax brackets.

 

Any ideas how I can add this content in?

 

Let me know if you need more information.

 

Cheers

 

Bobby

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Mike_James
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Re: Addding PAYE income to calculate expected GST

Hi @motherlodegames , welcome to the forum.

 

It's not possible to pay extra PAYE with a GST return. 

 

If your income now includes self-employment income, you will need to file an IR3 return for the year ended 31st March 2022 (previously if you only had salaries/wages, you may not have filed a return at all). This return will show you how much extra tax is due for that year, this will be due on 7th February 2023, and is called terminal tax.

 

If this amount ("residual tax") exceeds $2500, then you will be liable to pay provisional tax during the coming year. Provisional tax CAN be added into GST returns, and is deducted from your 2023 tax due.

 

The IRD publishes a due dates calendar for 2022-2023.


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

motherlodegames
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Re: Addding PAYE income to calculate expected GST

Hi Mike,

 

Thanks for the quick reply.

 

Sorry, I probably wasn't being very clear. I understand that I can't pay extra PAYE.

 

Using the MYOB application, I've recorded my self employment income and expenses for the side job. Because it's not a great deal, the GST report is showing an incorrect low amount of tax I need to pay. What I wanted to do is in someway show I have another source of earning (Where i've already paid the tax contiributions through PAYE) so the self employment income can be taxed correctly at a higher bracket.

 

Does that make more sense?


Cheers

 

Bobby

jenniek
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Re: Addding PAYE income to calculate expected GST

Hi @motherlodegames 

Sounds like you are using the AIM method with the GST return. You wouldn't be able to include your PAYE income in this as well - as the system is not designed for that. You would be better to put an amount aside for tax, or even pay the tax using WT (withholding tax) you could calculate manually to the IRD to end up in credit with them - then when you lodge your IR3 tax return for your self employed income, then this will take into account all income, less tax alredy paid (both PAYE and WT) and leave you with the balance to pay or refund.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz

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