# Hnry Alternative NZ (Henry Tax Compare): Sole Trader Tax & Bookkeeping (2026–2027)

- **Canonical URL:** https://iluratechnology.com/keel/nz-hnry-alternative-sole-trader-bookkeeping-guide/
- **Jurisdiction / Region:** NZ
- **Last Verified:** Mon Nov 02
- **Keel Official Pricing (v5.3.2):** Free to download on the App Store (daily tracking included; optional 5-Folder Pack $49.99 per period, or Keel Lifetime $299.99 paid once — no monthly subscription)
- **Summary:** Looking for an Hnry alternative in New Zealand? Compare Hnry (Henry Tax) 1% + GST fees against self-managed myIR bookkeeping NZ, Xero, and no-bank-link apps.

---
# Hnry Alternative NZ (Henry Tax Compare): Sole Trader Tax & Bookkeeping (2026–2027)

**Short answer: A Hnry alternative in New Zealand lets sole traders, tradies, and independent contractors receive 100% of client payments directly into their own bank or mortgage offset account, instead of routing every invoice through a third-party bank account for a 1% + GST cut. By pairing a no-bank-link invoicing and receipt app like Keel ($0/month) with Inland Revenue's free myIR portal (unlike Tradify, Fergus, Xero, or MYOB), Kiwi sole traders keep control of their cash flow and save up to $1,725 per year.**

> **⚡ Instant NZ Sole Trader Tax Calculator, 15% GST Invoice & Hnry Alternative Toolkit (`$0/mo`):** Run your numbers in the interactive NZ tax calculator above, save up to **[5 Free Saves in your iCloud Web Workspace](/keel/workspace/)** (or click **🔗 Embed / CSV Template**), check our [NZ sole trader tax calculator guide](/keel/nz-sole-trader-tax-calculator/), or **[Download Keel on the App Store (`$0/mo`, No Subscription)](https://apps.apple.com/app/apple-store/id6786659713?pt=127772795&ct=blog_vergi_nz-hnry-alt&mt=8&ppid=8470921a-830e-47a3-abf5-bf0b1cce24ac)** to send 15% GST & NZBN invoices, scan Mitre 10 and PlaceMakers dockets, and log IRD kilometres 100% on-device.

When New Zealand contractors, freelancers, and tradies search for a **hnry alternative**, **henry tax**, or **bookkeeping nz**, they are usually weighing convenience against control and cost. [Hnry](https://hnry.co.nz/) popularized a "pay-as-you-go" tax agent model in New Zealand: you give your clients an Hnry-allocated bank account number, and every time a client pays an invoice, Hnry deducts estimated income tax, ACC levies, 15% GST, student loan repayments, and its own **1% + GST fee** before forwarding the net remainder to your personal bank account.

For a casual side-hustler earning $15,000 a year, that hands-off deduction can feel effortless. However, once a **sole trader NZ** business scales—or once you buy materials, manage subbies, or hold a revolving-credit home loan—routing 100% of your gross revenue through a middleman account creates real financial trade-offs.

## How does Hnry (Henry Tax) work vs a self-managed Hnry alternative?

Under [Inland Revenue (IRD)](https://www.ird.govt.nz/) rules for the **2026–27 tax year (1 April 2026 – 31 March 2027)**, every New Zealand sole trader files an annual **IR3** return (often using the **IR10** Financial Statements Summary) and, if turnover exceeds **$60,000 in 12 months**, files 1-monthly, 2-monthly, or 6-monthly **GST101A** returns in `myIR`. See [sole trader tax NZ](/keel/nz-self-employed-taxes/).

There are three primary ways to handle **bookkeeping NZ** as a sole trader:

| Feature / Workflow | Hnry ("Henry Tax") | Cloud Accounting Suite (Xero / MYOB) | On-Device No-Bank-Link Ledger (Keel) + Free myIR |
|---|---|---|---|
| **Whose bank account appears on your invoices?** | **Hnry's managed bank account** — clients pay Hnry first, not your bank | Your own NZ bank account (ANZ, ASB, BNZ, Westpac, Kiwibank) | **Your own NZ bank account** — 100% of cash lands directly with you |
| **How is tax paid to IRD?** | Deducted immediately from every gross client payment before you see the cash | You hold the cash and pay GST / Provisional Tax on IRD due dates | **You hold the cash** (earning interest or offsetting your mortgage) until IRD due dates |
| **Material-heavy tradie invoices** | Deducts tax from gross inflows based on an estimated expense ratio unless adjusted | Full double-entry reconciliation via bank feeds | **Job-level tracking** — quotes, 15% GST invoices, TSI dockets & IRD km under each job |
| **Requires Bank Feed / Open Banking?** | Requires routing income through Hnry's account | Pushes continuous bank feeds | **No — 100% on-device with zero bank connection** |
| **Annual Cost (NZD)** | **1% + GST** of self-employed income (up to **$1,500 + GST = $1,725/yr**) | **~$420 to $936+/yr + GST** ($35–$78+/mo) | **Free core app**; optional one-time Lifetime or statutory pack (no % cut or monthly fee) |

For a full comparison of offline-first options, read [NZ sole trader bookkeeping apps with no bank link](/keel/nz-sole-trader-bookkeeping-apps-no-bank-link/).

## Why do Kiwi tradies and sole traders look for a Hnry alternative?

### 1. The Revolving-Credit & Offset Mortgage Cost (The Hidden $1,500–$3,000/yr Advantage)
In New Zealand, a huge proportion of self-employed tradies and consultants use a **revolving-credit** or **offset mortgage** facility (at BNZ, Kiwibank, Westpac, ANZ, or ASB). Every dollar of GST, income tax, and ACC reserve sitting in your offset account between April and your terminal/provisional tax due dates reduces the principal on which you pay **~6.0% to 6.8% p.a. non-deductible home-loan interest**.

When an app deducts your income tax and GST on the very day your client pays you, **you lose months of mortgage-offset savings** on your own tax reserve:
- Holding an average **$25,000 tax and GST float** inside a 6.5% offset mortgage saves **$1,625 per year in after-tax home-loan interest**;
- Add the **$1,000 to $1,725 (incl. GST)** in annual percentage fees you save by not paying 1% of turnover, and a sole trader can be **$2,600 to $3,350+ per year better off** keeping their own cash until IRD's official due dates.

### 2. Materials-Heavy Tradie Jobs vs Labour-Only Consulting
If you are a builder, plumber, electrician, or landscaper, a **$15,000 GST-inclusive invoice** might include **$8,500 of timber, switchgear, or plumbing supplies** bought at PlaceMakers or Reece, leaving only **$4,543 of actual profit** before overhead.

When a system withholds tax as a flat percentage of every gross client payment before your job receipts are reconciled, material-heavy tradies can experience a sharp cash-flow squeeze right when they need to pay their trade merchant account on the 20th of the following month. Keeping your quotes, supplier dockets, and invoices linked under a single job in an on-device [NZ invoice and quote app](/keel/nz-invoice-and-quote-apps/) shows your **true net job margin** immediately.

### 3. Keeping Your Own Bank Account Number on Client Invoices
Established commercial clients, property managers, and main contractors set up your business bank account (`01-xxxx`, `02-xxxx`, `03-xxxx`, `06-xxxx`, `12-xxxx`, or `38-xxxx`) in their payroll or accounts-payable system once. If you ever leave a platform that required you to put *its* bank account number on your invoices, you must contact every repeat client and head contractor to update your banking details so future payments do not bounce.

## How much does 1% + GST actually cost at different NZ turnover levels?

Because a percentage fee scales with **gross self-employed income**, here is how the annual software and service cost compares across typical New Zealand sole-trader earnings in **2026–2027**:

| Annual Gross Sole Trader Income (Excl. GST) | Hnry (1% + 15% GST Fee, Capped at $1,500 + GST) | Xero Grow (~$59/mo + GST) | Keel On-Device Ledger + Free myIR Filing |
|---|---|---|---|
| **$45,000** | $450 + $67.50 GST = **$517.50 / yr** | $708 + $106.20 GST = **$814.20 / yr** | **$0 / yr** (free core daily tracking; optional one-off pack) |
| **$85,000** | $850 + $127.50 GST = **$977.50 / yr** | $708 + $106.20 GST = **$814.20 / yr** | **$0 / yr** (free core daily tracking; optional one-off pack) |
| **$120,000** | $1,200 + $180.00 GST = **$1,380.00 / yr** | $708 + $106.20 GST = **$814.20 / yr** | **$0 / yr** (free core daily tracking; optional one-off pack) |
| **$150,000+** | $1,500 + $225.00 GST = **$1,725.00 / yr** | $708 + $106.20 GST = **$814.20 / yr** | **$0 / yr** (free core daily tracking; optional one-off pack) |

## How do you manage NZ sole trader tax yourself in 15 minutes a quarter?

Many first-time Kiwi sole traders assume filing in [myIR](https://www.ird.govt.nz/) is complicated. In reality, Inland Revenue designed `myIR` so sole traders can file directly for free:

1. **Create quotes and GST invoices on your phone:** Issue compliant invoices showing your **GST number** (if registered over $60,000) and **NZBN**; see our [NZ invoice template](/keel/nz-invoice-template/) and [NZBN invoice and docket book guide](/keel/nz-nzbn-invoice-and-docket-book-rules-ird/).
2. **Snap Taxable Supply Information (TSI) dockets on site:** Photograph every receipt over **$50** (and every GST receipt over **$200 incl. GST**) so it stays readable for IRD's **7-year record-keeping period**.
3. **Log IRD Tier 1 and Tier 2 business kilometres:** Track your work trips at **$1.20/km (petrol)**, **$1.30/km (diesel)**, **90c/km (hybrid)**, or **$1.22/km (EV)** on the first 14,000 annual km; see [IRD mileage rates 2026](/keel/nz-mileage-rates-vehicle-expenses/).
4. **Set aside your tax percentage in your own high-interest or offset account:** Each time a client pays you, transfer the 15% GST (`3/23` of the GST-inclusive total) plus roughly **18% to 27% of net profit** into your own tax sub-account or mortgage offset bucket.
5. **Copy the totals into myIR (or hand the export to your accountant):** Every 2 or 6 months, enter Boxes 5, 9, 11, and 12 into your [myIR GST return](/keel/nz-how-to-file-gst-return/), and after **31 March**, enter your annual income and expense summary into your [IR3 tax return](/keel/nz-ir3-explained/).

## How do Schedular Payments (WT) and ACC levies work without Hnry?

If you are a New Zealand subcontractor receiving payments with **schedular tax (WT)** withheld at source under an **IR330C** (typically 20%, or your elected rate), your client or labour-hire firm already sends your income tax withholding directly to Inland Revenue before paying you. See [NZ contractor tax rate and schedular payments](/keel/nz-contractor-tax-rate-schedular-payments/). In that situation, paying an intermediary 1% + GST of your gross invoice simply to handle tax that was already deducted at source is unnecessary—you only need to track your gross invoice, 15% GST (always calculated on the pre-WT gross amount), and deductible expenses so your WT credit reconciles on your IR3.

For **ACC levies**, ACC automatically bills you after you file your IR3 (with the earners' levy set at **$1.75 per $100 of liable earnings for 2026–27**), or you can opt into **ACC CoverPlus Extra** to lock in an agreed level of weekly compensation and a predictable annual invoice; see [ACC levies for the self-employed in NZ](/keel/nz-acc-levy-self-employed/).

## Frequently asked questions

**What are the best tradie job apps and sole trader tax calculators in New Zealand?**

For New Zealand tradies and sole traders comparing **job apps** and **NZ tax calculators**, **Tradify** and **Fergus** (~$45–$69+/month NZD) focus on multi-staff job dispatch and scheduling, **Xero** and **MYOB** (~$35–$78+/month NZD) focus on bank-feed accounting, and **Hnry** charges **1% + GST of income**. **Keel** (`$0/month` on iPhone, iPad, and web) combines a job-based **quote maker**, **15% GST & NZBN invoice app**, **Taxable Supply Information docket scanner**, **IRD $1.20/$1.30/km logbook**, and **NZ sole trader tax & GST return summary** in one offline-capable app with no subscription and no bank link.

**What is the best Hnry alternative for a sole trader in New Zealand?**

The most cost-effective Hnry alternative depends on whether you want a full cloud accounting suite or a private mobile ledger. If you want clients to pay directly into your own bank account without monthly subscription fees or a 1% income cut, an on-device app like Keel lets you send 15% GST quotes and invoices, scan Taxable Supply Information receipts, and log IRD kilometres, then file free in myIR or hand a clean export to a local chartered accountant.

**Why do people search for "Henry Tax" in New Zealand?**

"Henry Tax" is a common phonetic spelling Kiwi sole traders and contractors type when searching for Hnry, the pay-as-you-go sole trader tax and invoicing service in New Zealand and Australia. Whether spelled Hnry or Henry Tax, the service charges 1% + GST of self-employed income passed through its managed bank account, capped at $1,500 + GST per year.

**Do I have to use a third-party bank account to pay sole trader tax in NZ?**

No. Inland Revenue never requires sole traders to route client payments through an intermediary bank account. You can put your own ANZ, ASB, BNZ, Westpac, or Kiwibank account on every invoice, hold your tax and 15% GST funds in your own savings or mortgage offset account, and pay IRD directly via myIR or internet banking on the official GST, provisional tax, and terminal tax due dates.

**How does Hnry handle material-heavy tradie invoices compared with a job-costing app?**

When a tradie bills a large job that includes thousands of dollars of timber, plumbing, or electrical materials, deducting tax from the gross payment as it arrives can reduce the cash needed to pay trade suppliers on the 20th of the month unless your expense allocation is constantly adjusted. A job-based invoicing and docket app deducts the actual supplier receipts attached to that job so you only set aside tax on your real net profit.

**Can I file my own GST and IR3 returns in myIR without paying 1% of my income?**

Yes. Filing a GST101A return and an annual IR3 return inside Inland Revenue's myIR portal is 100% free. As long as your app keeps your GST-inclusive sales, Taxable Supply Information purchase receipts, and IRD vehicle kilometre logs organised, copying the summary figures into myIR takes around 10 to 15 minutes per filing period.

**What happens to my client invoice details if I switch away from Hnry?**

Because Hnry allocates a specific Hnry bank account number for your clients to pay into, switching away means you must update the bank account number on your invoice template back to your own bank account and notify repeat clients or head contractors so they do not pay into the old account. Exporting your historical client list, invoices, and receipt CSVs before switching keeps your 7-year IRD audit trail intact.

---

*This article is general tax information, not personalized financial or tax advice. Verify your obligations with Inland Revenue (ird.govt.nz) or a New Zealand chartered accountant.*