You don't have to break the law to reduce your tax bill. OneTeams's job is to show you how to minimise your tax legally.
Often clients pay the IRD unnecessary fees because they fail on their compliance. If you "fail to file" it can cost you $250. What a waste of hard earned money.
Filing GST and PAYE on time may not be your strong point - but we are here to help with that. If you are really struggling to keep on top of the "day to day" accounting and taxation - why not get the help of a bookkeeper and take away the stress.
In a small business its difficult to be good at everything - often clients get into their own business because they are good at what they do - dealing with customers, providing great service, making things they love. They don't know much about accounting and tax and how to minimise their tax.
A lot of wealthy people are paying tax at a rate lower than the lowest earners in the country.
In an article on Stuff in March 2021 it was reported that:
"A treasury report stated that 42 per cent of the richest Kiwis pay less than 10 per cent of their total income in tax.
The lowest income tax rate is 10.5 per cent, which earners pay on income up to $14,000.
Most people are taxed on the earnings from their job.
The different bands for typical incomes like salaries, wages and benefits range from 10.5 per cent for incomes up to $14,000 to 33 per cent on earnings above $70,000.
From April 1, a new high-end tax rate of 39 per cent applies on earnings above $180,000.
The very rich don't exactly have normal jobs, so they don’t get taxed like most of us.
Many derive most of their income elsewhere, with wealth tied up, for example, in companies they own, or investment assets."
Investing in capital appreciating assets is what wealthy people do - the government is totally focused on residential property - what about shares, commercial property, PIE funds, private companies, - their gains are taxed at a low rate or not taxed."
See if any of these ideas resonate with you?
Look at your business structure. Would you benefit from using a company or trust? This may also reduce your ACC levies. Companies are taxed at 28% and Trust income can be taxed at much lower rates if you have children aged 16 or over whom you are supporting.
If you have investments that may generate tax deductible losses you can put them into a Look Through Company structure which enables the shareholders to use the losses.
Look at investments where you can use the cash flow of the business but on paper they generate tax losses that exceed your cash outlay – considerably harder now that commercial buildings can only be depreciated at 2%.
Using your accountants skills to assist with the preparation of your accounts will result in you paying less tax.
We have lots of tools in our tool box to assist you to legally minimise your tax.