Esther Gillam used to gather up all the invoices for her part-time work over a whole year and work out how much tax to pay in what was a major headache for the fulltime student.

But a tax change has made it easier for the company she contracts via to pay tax on her behalf.

The Hamilton based student works two contract jobs - and is part of the growing number of people doing a variety of "gigs" or jobs to support herself.

Gillam works around six to eight hours week helping out a person with disabilities - doing housework and driving.


She combines that with contracting to her husband's not-for-profit business and fulltime study in occupational therapy.

Before signing up to online care working platform Mycare she had to invoice the family directly and admits her record keeping often made it tricky to work out exactly how much tax to pay at the end of the year.

On top of that was the challenge of finding the hundreds of dollars to pay the tax when it was due.

But now the company will pay some of her tax on her behalf.

"I think it can make a big difference. It depends on how many jobs you do."

She said it was also the record keeping side which helped.

"While paying the tax is helpful you also need the records to meet your own obligations easily.

"It does help those less experienced in being out on their own."

Mycare managing director Mark Jefferies said his business approached the IRD about its concerns around tax and its self-employed workforce about a year ago.


The company has around 3500 people that pick up work via its platform but does not employ them directly.

At the same time around 2500 clients advertise work via the site.

Jeffries said many people were used to being employed and having their employer sort out their tax for them.

The firm already facilitated invoices and payments between workers and those that used their services and could make manual tax payments.

And now it can deduct 10 per cent from what the workers earn to pay their taxes.

While there is a risk some will underpay their tax Jeffries said that was low because many care workers were low paid and worked part-time.

Paying some tax throughout the year was also better than paying no tax during the year and facing a big tax bill at the end of the year, he said.

Jefferies said the future of work was changing which meant many people were no longer just employed or contractors.

"There is this whole middle ground now."

Jefferies said despite the extra work for his platform it saw the move as being a good corporate citizen.

"By taking away that compliance problem they can concentrate on what they love to do."