The story for this month is of course the Olympics and the joy and heartbreak that comes from competing or watching (as the majority of us will be) from the comfort of home.
Win or lose, it’s all about commitment, dedication and a burning desire to achieve. Our Olympians are all remarkable because they mask their burning desire with humbleness.
And of course personal integrity, honesty and loyalty. I once read that honesty is not what you do in front of others, but what you do when you think no one else is watching. To be an Olympic competitor (or successful at business) personal honesty and integrity is key.
40 For Free:
I’m offering 40 minutes of my time for free. Just click on this link, tell me what you want to discuss and we’ll make a time to talk or to Skype.
STAKE GROUP GLASS FACTORY OPENING
Purpose Built Glass Factory Opened by John Key
E3 Business Accountants are proud to be the accountants and business advisors for the Stake Group.
On 23rd June, the new purpose built, $10 million glass processing plant was opened by the Prime Minister, the Rt Hon John Key. The plant also houses the national management, sales and administration office hub for Stake Glass. Stake Glass provides exterior and interior glass solutions to residential and commercial clients.
About Stake Glass:
BUSINESS GROWTH TIP
Have You Paid Too Much Tax?
The TV adverts tell us that over one million New Zealand employees have overpaid their tax. These are employees on PAYE so if there are overpayments, most will be by hundreds of dollars, not thousands.
What about shareholder employees and business owners in general?
Getting your business tax right is best left to the tax experts. Anyone in business knows that there are many tax trips and traps and that paying the legal minimum is not for the amateur.
As companies get the annual accounts done and tax returns prepared, make sure your accountant has left nothing on the table that is a legitimate tax deduction. Our tax team at E3 work hard to give their clients the best tax deal going.
If you have any doubts about the tax knowledge and commitment of your accountant (and you’re not with E3), contact me for advice.
BUSINESS STRUGGLER'S TIP
5 Tips on How to be Unsuccessful in a Strong Economy
Our country is on an economic roll. If you’re not experiencing and enjoying that roll, here’s 5 tips highlighting what you are probably doing quite well:
REDUCING TAX BY INCOME SPLITTING
Using a Trust for a Tax Advantage
This is easiest to understand with an example:
A trust earns $100,000 net taxable income in a year. If the income is held in trust it will be treated as trustee income and taxed at the trust rate which is currently 33% equating to tax of $33,000.
However, if you distribute the income to the beneficiaries it will be taxed at their marginal tax rates which can be considerably lower than 33%.
If the income is split between say 8 beneficiaries each of whom is on a marginal tax rate of 10.5%, the total tax payable will be $10,500 giving a tax savings in the year of $22,500!
CHILDREN AS TAX SAVING TRUST BENEFICIARIES
Use Your Children for Tax Saving
How can you split your income to many trust beneficiaries? Children on low or zero income can be most helpful reducing a trust's tax liability. If income is allocated to them it will be at their marginal tax rate, which can be a lot lower than yours.
Something to note however, is that children under the age of 16 are taxed at 33% to prevent the use of young children being used to split income. What does this mean for you? You may just have to wait until your children are over 16 to start to claw back some of the cost of their upbringing!
Get Your Website Ready
Since E-Commerce is only going to get bigger every year, you may want to start going through your website, page by page, to see if there are any glaring items that could hurt the entire buying process. This tip from Gentlemint.
My tip is that you actively engage several of your business friends and colleagues to go right through your site and make purchases. Test the ease of buying, ease of paying, ease of delivery and fulfilment. Get them to send in a query to see if it gets seen and answered. Reply to website enquiries instantly. It is well proven that first and fast responses are more likely to score a sale.
If your culture is not into speedy responses, don’t expect internet sales success. It always was the quick and the dead. It still is.
EMPLOYMENT AGREEMENT TIP
Are You Aware of What's New?
Everyone you employ needs an up-to-date employment agreement. An employment agreement is compulsory. You have until 31st March 2017 to update all existing employment agreements. Yes that sounds a long way off, but it will be here in an instant so get your employment agreements up to date.
And all new employees must be offered the new agreement format. We recommend one of three options to update your agreements:
We regularly publish the Step Up Business and Tax Tips Newsletter.
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Ambitious or Ambivalent