Should you go self-employed after redundancy? An honest checklist

The honest picture

Employed	Self-employed
Regular pay, PAYE taken out	Irregular income. You set aside tax, GST and ACC yourself
Holiday pay, sick leave, KiwiSaver employer contribution, minimum wage	None of these automatically. You price them into your rates
Personal grievance rights	Generally no, if you are genuinely a contractor. Your contract and civil law apply instead
Employer provides equipment and insurance	You do (you are automatically covered by ACC CoverPlus, but you pay levies)
Little risk	Business risk and often slow first year

Write down who will pay you, for what, and how much. Name five real potential customers.
Ask three of them: would you buy this, and at what price? A 'yes, I would pay' is worth more than a 'great idea'.
Do one or two paid jobs as a side project while you search for work.
Work out the minimum you must earn each week after tax, GST, ACC and costs.
Set a review date (for example, 3 months) with a clear 'go back to a job' trigger.

You're allowed to be self-employed and keep looking for a job. Many people do.

Regional Business Partner network: free to register through business.govt.nz, 14 regional partners across NZ. You need fewer than 50 full-time equivalent employees, an NZBN and to be currently trading. Management Capability Funding can co-fund training, but your business must pay at least half the cost.
Business Mentors NZ: volunteer mentors work with you over a 12-month period. There's a one-off registration fee (the amount isn't stated on business.govt.nz, so check with Business Mentors NZ).
Work and Income: Flexi-wage for self-employment can help with costs while you get started if you are out of work, 18 or older and have a viable business plan. It is not available if you are restarting a business you have owned before, already running an established business that is struggling, or bankrupt or insolvent. The Business Training and Advice Grant may provide up to $5,000 for a business plan, training and advice. Call Work and Income on 0800 559 009 to book.
Enterprise hubs and incubators exist in some regions. We couldn't verify a national scheme, so ask your local council economic development agency or Regional Business Partner.
Māori business support from Te Puni Kōkiri, MBIE and MPI for Māori businesses and collectives.

Redundancy payments can affect when a benefit can start (see the stand-down guide) and your final pay may include holiday pay. Read the final pay and stand-down guides before you spend anything.
Spend on what earns money first: tools, a vehicle you need, a basic website. Delay the premium office and branding.
Don't borrow against the family home for an untested idea.
Pay your tax set-aside into a separate bank account from day one.

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.