Paying tax is something you’re likely to see as a necessary (but not hugely enjoyable) part of running your business. But are you doing enough to plan your own personal tax liabilities?
Tax is often the last thing on someones mind when they sign a new client or make a big deal. Even your side hustle can cause issues when you have not considered saving the money earned at the time.
Planning ahead when it comes to tax
By taking a forward-looking approach to your own personal finances, and working with an experienced advisor, you can start to minimise your tax costs and maximise the value you enjoy from your own earnings and company profits.
Working closely with us helps you:
- Know your future tax liabilities - this shouldn't be hard for 99% of New Zealand businesses. We know our tax and GST rates so we should ensure we save a % of that for each dollar earned.
- Set up an annual tax plan – with provision for when payments should be made and when to set aside the funds needed to pay your income tax bill.
- Make use of any tax reliefs – Don't put your accounting in the to hard basket. By being proactive you can literally save thousands.
- Put it where you can't touch it – by taking your earnings out of your normal bank account into a serious saver it gives you that extra motivation to not spend it on that shiny new toy.
- If you get into trouble call us straight away - if you haven't saved for your tax bill get in touch. Don't pay the Inland Revenue UOMI rate when there are options like Tax Traders and NZTM.
As New Zealanders we all have to pay tax. If we are not just earning PAYE we need to be planning ahead for tax. Get in touch with us about setting up a plan for your taxes this year.