Frequently Asked Questions
1. Is Hnry for me?
Hnry works for all sorts of customers: Photographers, Tradies, Drivers, Freelance Designers, Business Analysts. Essentially, if you earn any income as a self-employed individual, regardless of how much or how often, or whether you use a recruiter, Hnry can take away the hassle of tax and compliance for you.
No. Hnry can handle it all, whether you make $1 a month or $100,000 a month.
If you’re only filing an IR3 at the end of the Financial Year, then yes, Hnry is for you!
Unfortunately, Hnry does not currently support tax and compliance for people trading through registered businesses. If you are trading as a business and filing both IR4 Company Accounts, and also personal IR3 tax returns, we would recommend that you use Hnry and switch to solely filing IR3 returns.
If you’re a sole trader, there’s no need to have a company structure when you’re using Hnry, as we make sure you’re as tax-efficient as possible!
Absolutely! You can sign up for Hnry at any time, and start saving yourself hassle and money right away. It doesn’t matter what stage of work you are in or what time of year it is – we can handle it!
Hnry is for everyone! Whether you’ve got yourself in a pickle in the past by dipping into your tax money, or whether you’re great at retaining your tax funds but you just can’t be bothered with having to deal with it any more – Hnry takes all of that pain away!
Not unless you like the pain of paying and filing taxes! You can sign up for Hnry at any time of the year, regardless of whether you’ve earned income this year or whether you currently have an accountant.
We take on new customers throughout the year, so you never need to worry.
2. How do I get started with Hnry?
Awesome stuff happens! When you sign up, we’ll ask you for some basic information about what sort of work you do how much you tend to earn. We’ll also ask for some basic financial information, such as your personal IRD and GST numbers (if you have one).
As soon as you sign up, we’ll send you your Hnry Account Number and Reference, which you can use to have all your self-employed income paid in to. You’ll also get access to our Hnry online platform, which you can use to manage your clients and services, send invoices to clients, enter expenses and manage your account details.
Switching to Hnry is really simple. When you sign up with us, we’ll handle all your tax and compliance from that date onwards. We’ll work with your existing accountant to make that a smooth transition, and make sure all your records are transferred safely. You can be up and running with Hnry in minutes, and never have to think about tax or compliance ever again!
Our Hnry fee is just 1% of the income that comes into your Hnry account. If you choose to take insurance through Hnry, an additional fee may apply.
Not in the slightest. Hnry doesn’t ’employ’ anyone (apart from our admin fairies) – so you’ll always be classed as an independent sole trader. Hnry is simply a service that lets you outsource all that boring tax and compliance stuff.
Nope. Just leave it to us. If you’re considering working independently, using Hnry is the easiest way to get up and running without having to research all the ins and outs of the compliance. Hnry makes sure you meet all your obligations, without you ever lifting a finger!
Yep, go for it. Hnry is totally free to join. We’ll only start working for you when you start using your Hnry account.
Yes! You’ll need to add your Hnry account details to Stripe, and you’ll also need to email firstname.lastname@example.org to ask them to add your unique Hnry reference to any payments to you. Unfortunately you won’t be able to add your unique reference through the Stripe website, but the folks on their support email are awesome and will do it for you really quickly!
3. How does Hnry work?
We calculate and pay your taxes immediately, every time you get paid. We don’t hold on to your funds for any longer than we have to, and you should get your money the same day your client pays.
When you get paid into your Hnry account, Hnry will immediately calculate, deduct and pay exactly the right amount of the following tax types:
- Income Tax
- ACC levies
- Student Loans
Hnry also files your tax returns with these agencies when they are due, and represents you to IRD and ACC as your agent.
Every time you get paid, you’ll receive a Pay Summary document, that details all the tax that has been deducted and paid on your behalf, just like a Pay Slip from a permanent job. You should retain these for your records
Your funds are being held in Trust Accounts, held with ANZ New Zealand
Not at all. All you’ll need to do is make sure they pay you using your Hnry account details
You’ll get paid every time money is transferred into your Hnry account. We don’t hold on to your funds for any longer than we have to, so you’ll get paid almost immediately after any money is received by Hnry.
If all your income comes through Hnry, you will not need to retain any funds for Provisional Tax. If you are currently subject to Provisional Tax payments, Hnry will make regular contributions of Income Tax, however you may still be responsible for making partial Provisional Tax payments, if your rate of Provisional Tax is higher than the Income Tax paid through Hnry.
You don’t need a GST number to sign up, however you will need one to use our service if you’re planning on earning over $60,000 in a year. If you’re not already registered for GST as a sole trader, you can do this through the myIR portal – it only takes a couple of minutes.
Once you have a GST number, you can let us know in the ‘My Financial Info’ section of your Dashboard.
Yes! We’re happy to process your expenses and purchases, and we’ll also work out any depreciation on the big stuff. Unlike accountants, we won’t ask for a shoebox of receipts – simply snap a photo of the receipt on your phone and upload it through our online platform!
N.B. We can only manage GST for sole-traders/individuals. We cannot manage or file GST for registered businesses
Unfortunately not. The Hnry service is ‘pay-as-you-earn’ and therefore we can only manage and file your tax returns from the date you sign up onward.
N.B. From 1st-31st March every year, all new sign-ups will take effect from the 1st of April.
4. How does Hnry work with employers and recruiters?
Not at all. Nothing changes except the bank account details you use to get paid. All the contracts with your recruiter or employer stay exactly as they are today.
Of course! Hnry works closely on your behalf with recruiters and 3rd parties, as well as with end-clients themselves. Regardless of whether your recruiter raises your invoices for you, or whether you don’t need to invoice at all – the only change you’ll be making is to provide your recruiter with your Hnry account details.
Of course! If your employer or recruiter creates your invoices for you (buyer-created Invoices), all you need to do is have them send the invoices to email@example.com and we’ll take care of the rest from there.
They are correct – however if you sign up to Hnry, your recruiter or 3rd Party no longer needs to make any deductions of Withholding Tax on your behalf – as Hnry takes care of it all. So that’s less hassle for you, and less hassle for your recruiter.
Tell them we’re awesome. Also, you’ll need to tell them that Hnry will be handling all your financial arrangements (including withholding taxes), so Remittance Advice for your invoices should be sent to firstname.lastname@example.org and our GST Number is 122-287-416.
If you’d like us to speak to your recruiter on your behalf, just let us know.
No way José. Hnry is an independent service provider that doesn’t have any connection to recruiters. We don’t care where you work or what sort of work you do – that’s none of our business.
5. Is Hnry an accountancy?
Heck no! Hnry is a service for contractors, freelancers and self-employed individuals, that takes away all the overhead of calculating and paying taxes. Hnry can invoice on your behalf, and when the money comes in Hnry pays all your taxes (Income Tax, ACC, GST, Student Loan) before passing the remainder on to you. No more danger of dipping into your tax and being fined; no more retaining funds for Provisional Taxes; no more hassle!
Good question! Accountants and Bookkeepers usually only calculate your tax payable and tell you when to pay – you still have to make the payments, retain money for future tax payments, deal with ACC and use accounting software or spreadsheets to track expenses.
When you’re with Hnry, all your taxes get paid and filed – you don’t need to do anything! Not only that, we can handle all your invoicing, manage relationships with government agencies, and can even sort you out with good insurance deals.
So what are you waiting for?
Nope! You won’t need an accountant at all any more – all your tax calculations, payments and filings will be done for you.
Not any more! When you’re with Hnry you don’t need to do any of the work yourself any more – so there’s no need for you to pay for accounting software or accountants. Result!
No. Hnry is a registered Tax Agent, and therefore is not required to register as a Financial Services Provider