QUESTION: I’m a contractor or consultant but I'm now employed. Should I deregister from GST?
ANSWER: The short answer is NO. At least not yet.
Registering and de-registering from GST add time and/or costs, so you don’t want to be jumping in and out of this decision on a whim. Give it some time. A new job as a contractor or consultant and the paid holidays, public holidays and sick days look good and regular. But the trouble with the grass being greener is that someone still has to mow and fertilise the lawns, and most times that gardener is you! Being your own boss does give you freedom and control. However it's important to let the dust settle and decide what your long term views and wants are. As long as you're technically available to take contract work or unsure of the long-term then its fine to stay registered for GST and keep filing returns.
You'll likely have to adjust some of the proportions in claims. For example, for some things like your car you can no longer claim the kilometres that are not self-employed (and that of course includes the km's to and from your new place of employed work.)
Slater Chartered Accountants suggests you wait until near the end of the financial year (usually March) as you'll still have to meet your usual tax filing commitments and payments (although you can adjust your current provisional tax).
Also, don't forget that if or when you do deregister you'll have to account for any assets sold or kept, so the longer you put that off then in most cases their market value is lessened, and the less GST you pay if keeping them. (E.g. your car.)
You may want to make life easier by changing your GST period to a less frequent option. (GST can be paid by month, 2 months or 6 months periods.) Consult us in at Slater Chartered Accountants if you want to do that. Call 07 838 9701 or email email@example.com or firstname.lastname@example.org to arrange this change.