Luke Chemies

Recently, I saw a story like this where somebody went through the same journey and was a butcher.

They're doing a bit of home kill butchery with a setup that they had or a mate setup that they had, I think it might have been.

Doing one for a mate, then, oh, can you do one for us as well?

Oh, hi, mate, can you do one for mates rates?

Next thing, over a few years, it's like 70 grand worth of income.

Not returning any of it because it's just all sort of helping out

The correct thing to do in the eyes of the IRD would be, what were the total sales of doing that?

But what were your costs?

Okay, 70 grand worth of income, but actually you had to buy 40 grand worth of stuff.

You've got profit of 30 grand over those three years.

You need to update your tax returns for the fact that you did have self-employment income.

You were in business.

That's not really a hobby.

But

this person could go, well, I just don't know if I want to do that.

And then they may not have done the right thing, but they may not get asked by the ID.

They may not get, let's say, caught, but the onus again is still on the taxpayer.

So my mate, for instance, who got the letter from the ID of, do you have anything to clear?

He didn't want to run the risk of, nah, I think I had a hobby going on.

I'm not going to pay any tax.