Did you know that despite challenging economic conditions, 80% of sole traders would prefer to remain a sole trader rather, than become a PAYG employee? This is just one of the statistics taken from Hnry’s Sole Trader Pulse, the latest quarterly report the digital tax agency has produced, based on an extensive survey of Australian sole traders, a growing cohort that includes contractors, consultants, freelancers, gig economy workers and tradies.
ArtsHub speaks to Hnry’s Managing Director Karan Anand about some of the survey’s other findings. He says, ‘42% of sole traders with business expenses aren’t claiming all the expenses they’re entitled to, while 46% have never contributed to their superannuation fund as a sole trader.’
Financial literacy and compliance can be tricky for arts workers, who often prefer to create rather than delve into the world of columns and figures. But Anand and his team at Hnry can help balance the sheets.
As he points out, ‘Sole traders are unfortunately solely responsible for their tax and financial obligations. This includes income tax, GST (if applicable), the Medicare Levy and student loan repayments. And, although it’s not strictly compulsory, they may want to think about contributing to their superannuation fund as well – unlike PAYG employees, they don’t have an employer doing it for them.
‘On top of saving for their tax bill, they also have to lodge their own tax returns and BAS (business activity statements), which takes time and effort they could be spending on running their business,’ says Anand. ‘Hnry users, however, don’t have to think about any of this. We calculate and pay their taxes as they go, and lodge their BAS and tax returns when they’re due – it’s all part of the Hnry service.’
And what about if sole traders have a quiet period of little earnings? ‘Hnry users pay as they go, meaning that if they’re not earning, they don’t pay for our service,’ Anand says.
Founded in Wellington in 2017, Hnry has since expanded beyond its New Zealand base to the Australian market. It now has over 15,000 clients.
The company provides a one-stop help service that takes care of all those pesky financial requirements for sole traders, like invoicing, claiming expenses, and tax payments, as well as offering on-demand support.
‘Although it is all digital, our team is always ready and available to talk through any questions you may have. Simply send us a message via email or through the chat on our website, or give us a call and we’ll take you through anything you need to know,’ Anand says.
‘You can send invoices to your clients through our app, and we’ll even chase unpaid invoices for you, as well as claiming your business expenses. You just have to snap a photo of your receipt and enter a few details.’
Hnry does not have joining fees or subscription costs. ‘We also don’t charge extra to answer your questions, review your expenses, or lodge your tax and BAS returns. Basically, for just 1% of your self-employed income, you never have to think about tax again,’ Anand concludes.
For your financial and tax needs contact Hnry.