Tax Pooling – Jump on in!
By Rosie Gallagher Dealing with tax arrears isn't just about negotiating the debt accrued – it's about ensuring the right processes are in place to guarantee future compliance. For instance, I recommend all of my clients operate a GST savings account, whereby, every time you are paid, 15% goes straight into an untouched savings account, just waiting for GST time to be paid in full and on t [...]Read More
“AIM – Provisionally better.”
By Rosie Gallagher How often does provisional tax time roll around and you’re totally unprepared? In the world of tax debt management, after GST being used as cash flow, inability to account for or pay provisional income tax is the second most common way to fall behind in your tax obligations. Provisional tax is based on the income you made the year before, so, even if you are not makin [...]Read More
The right recipe for tax debt resolution.
The right recipe for tax debt resolution When you fall into the boiling pot that is tax arrears in NZ, IRD ensure that ‘paying it next month/when you can’ is an option that rarely works. Adding a pinch of heinous interest and a dash of penalties - both late filing and late payment – means that within just one month, your forgotten PAYE return could have increased by over $250. Imagine [...]Read More
Why fight to save a limited liability company – surely I’m protected?
Why fight to save a limited liability company - surely I'm protected? Many of my clients don't see the point in fighting to save a limited liability company, assuming that they'll lose any assets to the Liquidator but will be personally unaffected. Unfortunately, this isn't the case. There are two main areas of a liquidation that can, and often will, affect the shareholders and/or Directors pe [...]Read More
I am a name, not a number!
I am a name, not a number! By Rosie Gallagher Two big results for Tax Debt Management in the last couple of weeks have reiterated that there is no time to address your tax arrears like the present. This month, M/s Consultant and Mr. Handyman received full write off of their debts, (over $200,000 in total,) under the hardship provisions, despite M/s Consultant working full time and Mr. Handy [...]Read More
‘Budget’ is not a dirty word!
'Budget' is not a dirty word! Dealing with people in tax debt every day certainly keeps you appraised of various market trends and economic impacts on various industries. What can be surprising though, in this age of sky-high rents and technological progress, is that so few families seem to work to a budget anymore. Client A – let’s call her Jenny, is a successful contractor based in We [...]Read More
Bonuses and benefits
Bonuses and benefits This is the time of year when many of us receive a bonus or, conversely, when we close down for several weeks – either way, change from a normal routine or income can affect the tax you pay – and therefore, can lead to unknown debt. When you get a lump sum payment or “extra pay”, it can affect the amount of tax you pay. It can also affect your ACC, KiwiSaver and stud [...]Read More
Tax Arrears Many people love the idea of starting their own business, however, turning such a dream into a successful enterprise isn’t always smooth sailing. In fact, soon after starting a business, many new business owners realize that they are in over their heads. They see that there are a number of obstacles that need to be overcome, as well as knowledge that needs to be gained. Knowledge re [...]Read More