Earning money in the share economy is great but you should keep in mind that when you provide services through Wofo for a fee, you need to consider how income tax and goods and services tax (GST) applies to your fees earned.
Wofo tax FAQs
How do I pay my taxes?
If you earn income from providing personal services through a digital platform, you need to include this income and the deductions in your income tax return.
Income tax returns are filed annually, usually covering the period 1 April to 31 March.
Do I need to tell the IRD about money I get from Wofo, even if I only do a couple of gigs?
Yes, whenever you provide these services in return for a fee, the income you earn is taxable and must be declared in your tax return – even if it's a one-off payment.
Do I need to register for GST?
You only need to register for GST if you earn more than $60,000.00. Once you are registered, GST will be added to your hourly rate.
How do I keep track of my Wofo Earnings?
It can be easy to lose track of what tasks you did, especially if you have other jobs and income across the year. However, you can check the earnings tab on your app to see how much you have earned throughout the year.
Remember to keep your receipts, every time you buy something that’s related to your Wofo work.
Wofo tax deductions you might be able to claim include:
Two important points to remember about Wofo and tax deductions:
To claim any Wofo expense as a tax deduction, you must answer “yes” to all of these three questions:
Did you pay for the item yourself, with no reimbursement?
Is the deduction directly related to the work you do?
Do you have a receipt?
If you don’t have a receipt or proof of purchase for your Wofo expense, do not claim it as a tax deduction. The IRD will be looking closely at gig economy workers like people on Wofo. (Not sure if you can claim an expense? Keep the receipt and chat to your tax agent.)