Navigating Your Tax Responsibilities with Cameron Rolls - Chartered Accountants
Content creation is an exciting and growing industry, with creators earning income from platforms like YouTube, TikTok, Instagram, and others. But as this industry grows, so does the IRD’s focus on ensuring creators meet their tax obligations. Here’s a clear and concise guide to help you understand your responsibilities.
Am I Running a Business or Pursuing a Hobby?
The distinction between a business and a hobby is critical:
Hobby: Personal pursuits not intended for profit. Expenses are not tax-deductible.
Business: Activities carried out with the intention of making a profit. Income must be declared, and you can deduct related business expenses.
To determine if your content creation qualifies as a business, consider:
Regularity and scale of activities
Marketing efforts and self-promotion
Profit intention and capacity
Professional conduct (e.g., maintaining records, branding)
Tax Obligations for Side Hustles
If your content creation generates additional income, it’s considered taxable. Regardless of whether it's your primary job or a side hustle, all income must be declared.
💡 Pro Tip: Expenses related to content creation may be tax-deductible, helping to offset your income.
Income to Declare
The IRD requires you to declare income from:
Advertising and sponsorships
Appearance fees or partnerships
Cryptocurrency payments
Non-cash benefits (e.g., free products, trips).
Non-cash benefits must be reported at market value, which can sometimes create cashflow challenges. Be proactive in setting aside funds for taxes on these items.
GST Requirements
If your annual income exceeds $60,000, you must register for GST. This applies to all businesses, including content creators. GST registration means:
Charging GST on your services
Filing GST returns regularly.
Claimable Expenses
As a content creator operating a business, you may deduct expenses directly related to your work, such as:
Equipment: Cameras, lighting, microphones, computers
Operational costs: Internet, phone bills, software subscriptions
Advertising: Social media ads, domain fees
Home office expenses (portion of rent, power, etc.).
Filing Your Tax Return
You can file your return yourself or engage a professional accountant to:
Ensure accuracy
Identify deductible expenses
Minimise tax liabilities
At Cameron Rolls, we specialise in helping creatives like you navigate complex tax rules.
Why Record-Keeping Matters
The IRD requires records to be kept for 7 years. Key documents include:
Receipts and invoices
Bank statements
Contracts and agreements.
Good records make audits stress-free and ensure no deductions are overlooked.
Get Expert Support
Taxation can be complicated, especially with varying income streams and obligations. At Cameron Rolls - Chartered Accountants, we take the hassle out of tax compliance so you can focus on your craft.
🔗 Learn more at www.cameronrolls.co.nz
📞 Contact us today for personalised advice on your tax situation.