Where Kiwi Businesses Grow
E3 is now confirmed as the Southern Regional Partner to The Icehouse to provide coaching, accounting, tax and business advise.
To position your business for growth and fend off competitors, take The Icehouse BIQ online survey and get a 20 page report about the strengths and weaknesses of your business.
CYBER SECURITY TIP
10 Must Do's to Safeguard Your Business
PAY TAX AT YOUR LEISURE
How to Match Tax to Your Cashflow
Tax pooling is approved by the IRD and enables you to better match your provisional tax payments to periods of strong cashflow. Example: the second instalment of provisional tax is due on 15th January when cash is tight for many businesses. This payment can be deferred at finance fees lower than an unsecured loan or at overdraft rates.
To defer a provisional tax payment, you pay a tax pooling intermediary a one-off, tax deductible finance fee. The fee is based on the amount of tax financed and the future payment date. The tax pooling intermediary holds a “date-stamped” tax deposit on your behalf in its tax pool account which is held at the IRD.
At the agreed date, you pay the principal to the tax pooler. The money is then transferred into your IRD account to clear the tax owing. This eliminates late payment penalties and interest.
Email me for an accountant to contact you with the nuts and bolts of how it all works.
GETTING AGREEMENT TIP
It's Easy - Just Listen
Get Agreement By Listening, Not Arguing.
Listening is far more persuasive than speaking. Next time you disagree with others, put your opinions away and try just listening.
Let them speak into the silence and listen for the truth behind their words. Then acknowledge what you’ve heard (which is, most likely, more than has been said) and, once the others feel seen and heard, offer your view.
7 CRITICAL BUSINESS SUCCESS TIPS
Business Owners Must Know These By Heart
KIWISAVER FUNDS AND CREDITORS
Are Your Savings Out of Reach?
As funds cannot be withdrawn until the age of 65, your savings are safe from creditors and the Official Assignee until that age. But you must tell the OA about any super funds you have and may need to provide a letter confirming that funds are not available to you under their hardship provisions.
The Court of Appeal recently ruled that KiwiSaver funds do not vest in the OA upon bankruptcy. However, this ruling may not protect funds in other schemes.
Our advice – don’t bank on KiwiSaver being 100% safe but unless you’re busy dumping money in KiwiSaver to hide from the OA, your funds should be safe.
We regularly publish the Step Up Business and Tax Tips Newsletter.
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Income and Provisional Tax Overview:
How to make payments to IRD:
A Chinese electronics assembly company is building a factory in Chengdu which is totally automated – no human workers involved whatsoever. What career advice do we now need to offer our children?
Profit pays your staff.
Profit pays their PAYE.
Profit pays GST.
Profit pays income tax.
Profit pays off loans.
Profit pays your creditors.
Profit pays suppliers.
No profit pays no tax.
No profit no government income.
No government income – kakistocracy.
The mouse said to the elephant as they walked together across the bridge together “we sure shook that bridge.”
You won’t go berserk with your hands in the dirt.
Late tax now costs 9.21%. Better to look at borrowing from other sources or tax pooling.
Now down to 74 cents per kilometre for both diesel and petrol.
Click here to ask me any question about business and I'll do my best to answer it. If I don't know the answer, I'm sure I can point you to someone who can.
Try me – there's no cost by the way. Just another complimentary service unique to E3 Business Accountants.
Image credits: Thanks to freedigitalimages.net, cooldesign, jesadaphorn, nenetus, Mr GC and adamr.