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  1. Home
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  4. New guidance for applying as a sole trader

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New guidance for applying as a sole trader

10 June 2024.

Sole traders may be eligible for a main benefit or other assistance depending on their situation.

A sole trader is a self-employed person who uses their personal Inland Revenue (IR) number for their business use. They could be a contractor (like a hairdresser or tradie) or someone who sells something (like art).

You can use the ‘Check what you might get’ tool to see what you’re eligible for.

Check what you might get - msd.govt.nz

Declaring your income

To give you the right support, we need to know what income you earn.

Self-employed, sole trader or business income

Preparing your income information

You'll need to provide either a:

  • IR3 – Individual tax return
  • IR3B – Schedule of business income
  • profit and loss account, or
  • current account (if separate from the balance sheet).

If you don’t have these forms, or we need more information, we may ask you to provide:

  • your full set of accounts, including:
    • a profit/loss statement and
    • balance sheet.
Types of documents we accept

Help to prepare your accounts

It’s important we have the correct income information. If you need help preparing this, support is available online and in the community.

The Inland Revenue website is a helpful place to start.

Self-employed - Inland Revenue
Record keeping - Inland Revenue

For help in the community, see the Family Services Directory.

Building Financial Capability – Family Services Directory

What to do while getting a benefit or payment

Even though you're a sole trader, you may have work obligations while you’re getting a benefit or payment from us. This could include taking steps to find full-time employment. We'll talk about this when we meet with you.

There’s more information on our page:

Your obligations while getting payments from us

Support to enter self-employment

Support is available for people entering self-employment. More information is on our page:

Start your own business

Related

Becoming a sole trader — business.govt.nz
Self-employment — Connected
Self-employed — Inland Revenue
Support for business — MBIE
Community Law — Free Legal Help throughout New Zealand

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