RE­LEAS­ING THE SELF-EM­PLOYED FROM TIME-CON­SUM­ING TAXES

NZ Business - - SNIPPETS -

KIWI FINTECH start-up Hnry has launched a new ser­vice to sup­port pay­ment com­pli­ance for the self-em­ployed. The ser­vice gives self-em­ployed peo­ple the free­dom to fo­cus on their busi­ness by au­tomat­ing their in­come tax, GST, ACC and student loan pay­ments.

Hnry’s co-founder and CEO James Fuller says Hnry turns self­em­ploy­ment into a ‘pay-as-youearn’ model, free from the risk of se­vere con­se­quences that come with non-com­pli­ance.

Self-em­ployed peo­ple or­gan­ise for their clients to pay Hnry di­rectly, Hnry then takes care of all re­quired pay­ments – en­sur­ing fees are paid ac­cu­rately and on time.

As soon as the client has paid, the sole trader is im­me­di­ately paid their take-home in­come, Hnry doesn’t hold money or de­lay pay­ments. To­tal fees are one per­cent of in­come, capped at a max­i­mum an­nual fee of $2,000 for high-earn­ers.

Fuller says in most economies the sys­tems and pro­cesses that come with be­ing self-em­ployed are fun­da­men­tally bro­ken. In New Zealand, th­ese sys­tems aren’t in line with mod­ern re­quire­ments, mean­ing they’re com­pletely out of touch for the self-em­ployed.

“Over the past few years, there has been a sig­nif­i­cant rise in or­gan­i­sa­tions look­ing to em­ploy free­lancers and con­trac­tors so they can scale up and down their work­force. Also, the idea of work­ing mul­ti­ple jobs at the same time is be­com­ing com­mon­place, and the gig econ­omy is im­pact­ing many dif­fer­ent in­dus­tries – but we need the right sys­tems in place to make this work. Hnry pro­vides the wiring for the gig econ­omy.”

While ac­count­ing plat­forms ex­ist to sup­port small, medium and large busi­nesses, the needs of sole traders are very dif­fer­ent and haven’t pre­vi­ously been catered for, says Fuller.

Hnry has been built for all types of sole traders, such as Uber driv­ers, free­lancers, graphic de­sign­ers or some­one run­ning a drop ship­ping busi­ness.

The team aim to have 20,000 users by Septem­ber 2019 and have a road map to add functionality that will en­able Hnry to launch in Aus­tralia, the UK and US.

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