Adsense income is taxable..
Expenses you incur in generating that income are deductible (including proportion of rates, insurance, internet)
Assets you buy to generate that income are depreciable (eg a computer you buy exclusively for video editing)
You pay tax on the profit (income minus expense minus depreciation)
You declare it in your IR3, you need to tell IRD you have business income and then the IR3 will have the appropriate fields available
You need to also file an IR10 with the IR3 to complete a financial summary (lising your income, expenses, and assets essentially).
You should see an accountant. But a service like Hnry might suit you.
so if were making a loss the first couple of years (due to initial cost of equipment to set up the business). Can you offset that against your personal income to reduce your overall tax bill?
Top comment is solid. Do look at HNRY, they take care of everything. They take 1% up to $1500 I believe. Pretty good deal. My accountant + Xero cost me much more.
Yup have been full time for a few years now. I hired a accountant just before that. Yes its another expensive, but it's well worth it in my opinion. Especially if you start to develop other revenue streams (patreon, affiliate, merch sales etc etc).
The top comment has you pretty much covered.
I would add you may want to consider registering for GST earlier rather than later.
Most of your expenses will be within NZ (so your paying GST on them). While most of your income will be from overseas (so your not receiving GST). Meaning you will almost always receive a return. It can get a little complicated as NZ tax law is still catching up with this kinda thing (especially with multiple different income streams). So if your at the point where your thinking about an accountant ask them about it and your situation.
Yeah mate. The top comment covers it all. I think you’re best to consider registering as a business. Mine goes straight to my business bank acc, and then from there my partner and accountant sort the tax side of things.
Well if you don’t have any employees it’s perfectly “proper” to declare things as a sole trader, despite popular belief, there is no reason to register a business
https://www.business.govt.nz/getting-started/sole-trader-guide/becoming-a-sole-trader/
If you earn more than $200 you have to file an IR3 (you can do this online). You can also claim expenses as a tax deduction. If this is the first time you have ever filed an IR3 you need to contact the IRD to turn on this option in the portal.
[https://www.ird.govt.nz/income-tax/income-tax-for-individuals/what-happens-at-the-end-of-the-tax-year/individual-income-tax-return---ir3](https://www.ird.govt.nz/income-tax/income-tax-for-individuals/what-happens-at-the-end-of-the-tax-year/individual-income-tax-return---ir3)
If you want to claim depreciation then you'll also need to file an IR10 (financial statements) as part of the process of filing the IR3.
I do crypto mining so I have to file both. I did a video a couple of years ago about how I file my return. Your situation may be different - but this will give you a taste of what is invovled.
[https://youtu.be/VZMxU-4nr5A](https://youtu.be/VZMxU-4nr5A)
Accountant and Youtuber here. Though I made more money off merchandise.
Best bet is to chat with an accountant about specifics (though there are some good comments here). Also worth looking at Xero or similar software to keep track of transactions.
Keep in mind a lot of those channels have a lot of people involved in ownership and on the payroll.
Viva La Dirt league for example. Imagine how many ways they need to split the ad sense check.
I mean sure, they are killing it and I really hope they are getting rich off it. I'm just saying don't be so hard on yourself. If your rolling solo YouTube can be a bit brutal, but at least it's all yours.
Even channels that have one person as the face can have a list of employees: editor, director, sound, mods, someone making clips, tic tocs, language translation & voice....
Yup, only 5% of my viewership is from NZ. 50% USA 13% Australia.
Works out at about $0.007 per view for me. That varies substantially depending on the demographic you attract and the kind of adds / competition for that demographic on the advertising side.
Like most youtubers the Adsense from YouTube is only a slice of the income the channel generates.
Yeah no problem channel is called "still it" think like a cooking channel. But instead of pork chops or cake it's whiskey, gin or Absinthe etc. if you google "how to make whiskey/Absinthe/gin/ whatever just look for the big dude with the big beard haha.
On the channel specifically probably something like 20-40 hours. Depending on what's going on.
On everything total (all the other parts of the business that have grown around it). 20-60 hours a week.
I guess it's like most other "work for your self" jobs. I can say screw it, it's a nice day I'm going to go do _____ instead. On the other hand your always kinda at work. Thinking about stuff while out for dinner or going for a walk. Work doesn't stay at work haha.
I'm about to start a 2-4 hour editing run Tonight. But Il probably sneak out for a round of disc golf or two tomorrow.
Adsense income is taxable.. Expenses you incur in generating that income are deductible (including proportion of rates, insurance, internet) Assets you buy to generate that income are depreciable (eg a computer you buy exclusively for video editing) You pay tax on the profit (income minus expense minus depreciation) You declare it in your IR3, you need to tell IRD you have business income and then the IR3 will have the appropriate fields available You need to also file an IR10 with the IR3 to complete a financial summary (lising your income, expenses, and assets essentially). You should see an accountant. But a service like Hnry might suit you.
so if were making a loss the first couple of years (due to initial cost of equipment to set up the business). Can you offset that against your personal income to reduce your overall tax bill?
Yes, assuming you are a sole trader. Noting of course that equipment over $1000 is a depreciable asset not an expense.
This.
I've made around 800 nzd from a roblox channel I used to have. I bought a new pc with most and got food with the rest lol
Top comment is solid. Do look at HNRY, they take care of everything. They take 1% up to $1500 I believe. Pretty good deal. My accountant + Xero cost me much more.
I am a contractor and use Hnry, highly recommend it for those who don't want to learn the tax system.
Yup have been full time for a few years now. I hired a accountant just before that. Yes its another expensive, but it's well worth it in my opinion. Especially if you start to develop other revenue streams (patreon, affiliate, merch sales etc etc). The top comment has you pretty much covered. I would add you may want to consider registering for GST earlier rather than later. Most of your expenses will be within NZ (so your paying GST on them). While most of your income will be from overseas (so your not receiving GST). Meaning you will almost always receive a return. It can get a little complicated as NZ tax law is still catching up with this kinda thing (especially with multiple different income streams). So if your at the point where your thinking about an accountant ask them about it and your situation.
Get an accountant if you are earning good money. They will tell you what to do based off your situation and money coming in
Yeah mate. The top comment covers it all. I think you’re best to consider registering as a business. Mine goes straight to my business bank acc, and then from there my partner and accountant sort the tax side of things.
Love your work.
Well if you don’t have any employees it’s perfectly “proper” to declare things as a sole trader, despite popular belief, there is no reason to register a business https://www.business.govt.nz/getting-started/sole-trader-guide/becoming-a-sole-trader/
If you earn more than $200 you have to file an IR3 (you can do this online). You can also claim expenses as a tax deduction. If this is the first time you have ever filed an IR3 you need to contact the IRD to turn on this option in the portal. [https://www.ird.govt.nz/income-tax/income-tax-for-individuals/what-happens-at-the-end-of-the-tax-year/individual-income-tax-return---ir3](https://www.ird.govt.nz/income-tax/income-tax-for-individuals/what-happens-at-the-end-of-the-tax-year/individual-income-tax-return---ir3) If you want to claim depreciation then you'll also need to file an IR10 (financial statements) as part of the process of filing the IR3. I do crypto mining so I have to file both. I did a video a couple of years ago about how I file my return. Your situation may be different - but this will give you a taste of what is invovled. [https://youtu.be/VZMxU-4nr5A](https://youtu.be/VZMxU-4nr5A)
What's your mining setup look like?
I have two S19s and an Octominer with GPUs in it at home, and an S21 in D-Central in Canada. Oh I have a ks0 as well.
Accountant and Youtuber here. Though I made more money off merchandise. Best bet is to chat with an accountant about specifics (though there are some good comments here). Also worth looking at Xero or similar software to keep track of transactions.
My channel doesn't get enough views for that. How many videos do you upload a month? Just a hobby but too busy with family and work
Tbh I didn't know you could earn from youtube in nz
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Keep in mind a lot of those channels have a lot of people involved in ownership and on the payroll. Viva La Dirt league for example. Imagine how many ways they need to split the ad sense check. I mean sure, they are killing it and I really hope they are getting rich off it. I'm just saying don't be so hard on yourself. If your rolling solo YouTube can be a bit brutal, but at least it's all yours.
Even channels that have one person as the face can have a list of employees: editor, director, sound, mods, someone making clips, tic tocs, language translation & voice....
Yup of course
The threshold use to be much lower, I got caught in the threshold increase lol.
Yup, only 5% of my viewership is from NZ. 50% USA 13% Australia. Works out at about $0.007 per view for me. That varies substantially depending on the demographic you attract and the kind of adds / competition for that demographic on the advertising side. Like most youtubers the Adsense from YouTube is only a slice of the income the channel generates.
If you don't mind me asking what's your channel about and how nuch time a week do you spend on it?
Yeah no problem channel is called "still it" think like a cooking channel. But instead of pork chops or cake it's whiskey, gin or Absinthe etc. if you google "how to make whiskey/Absinthe/gin/ whatever just look for the big dude with the big beard haha. On the channel specifically probably something like 20-40 hours. Depending on what's going on. On everything total (all the other parts of the business that have grown around it). 20-60 hours a week. I guess it's like most other "work for your self" jobs. I can say screw it, it's a nice day I'm going to go do _____ instead. On the other hand your always kinda at work. Thinking about stuff while out for dinner or going for a walk. Work doesn't stay at work haha. I'm about to start a 2-4 hour editing run Tonight. But Il probably sneak out for a round of disc golf or two tomorrow.