IT contractor tax question

Discussion in 'Accounting & Tax' started by hash_investor, 28th Feb, 2018.

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  1. hash_investor

    hash_investor Well-Known Member

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    Moderator please delete if this is not relevant.

    So I was talking to this new agency for an IT contract and brought up this topic of tax savings which I hadn't heard before. He was saying something like, he will give me a new contract after 3 months with a different working hours (and probably every 3 months) and since that would be considered a new contract from a tax perspective I will be able to do more expenses.

    I couldn't understand what he was saying and he didn't explain it much further either and asked me to talk to my accountant instead for details. Does anyone know what he meant by that? How would that be beneficial for me?
     
    hash_investor, 28th Feb, 2018
    #1
  2. Mike A

    Mike A Well-Known Member

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    Have no idea what they mean.

    Beware IT agencies giving tax advice. Plutus payroll had a few issues i believe :p ask them if they are also remitting your PAYG and superannuation obligations
     
    Mike A, 28th Feb, 2018
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  3. Ross Forrester

    Ross Forrester Well-Known Member

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    I think the contractor is getting bad tax advice (or they have made it up).
     
    Ross Forrester, 28th Feb, 2018
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  4. qak

    qak Well-Known Member

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    Maybe he thinks it is getting around PSI rules?
     
    qak, 28th Feb, 2018
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  5. Mike A

    Mike A Well-Known Member

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    If its contracting through an agency to one firm it will still be PSI.
     
    Mike A, 28th Feb, 2018
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  6. hash_investor

    hash_investor Well-Known Member

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    Yes I am sure its getting around PSI. But how that arrange can void PSI rules I am not sure
     
    hash_investor, 28th Feb, 2018
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  7. qak

    qak Well-Known Member

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    It doesn't, that's all!
     
    qak, 28th Feb, 2018
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