{"id":1782,"date":"2023-04-17T09:53:44","date_gmt":"2023-04-16T21:53:44","guid":{"rendered":"https:\/\/marketingwebsite.afirmo.com\/nz\/?p=1782"},"modified":"2024-01-16T13:05:27","modified_gmt":"2024-01-16T00:05:27","slug":"how-to-avoid-paying-more-tax-than-you-need-to","status":"publish","type":"post","link":"https:\/\/www.afirmo.com\/nz\/resources\/how-to-avoid-paying-more-tax-than-you-need-to\/","title":{"rendered":"How do I avoid paying more tax than I need to?"},"content":{"rendered":"

This article is designed to help you get started on the basics, so you don\u2019t miss out. However, everyone\u2019s situation is different, so it\u2019s always a good idea to talk with a tax specialist or accountant; even if it\u2019s just to check you\u2019re set up correctly.<\/span><\/p>\n

Know and meet your tax deadlines<\/h3>\n

One of the most important ways to avoid paying too much is to file your tax returns and pay your tax on time. If you don\u2019t, you risk having to pay interest as well as a penalty fine. It\u2019s important to identify your tax dates and put them in your calendar every year.\u00a0<\/span><\/p>\n

If you\u2019re registered for GST or have to pay provisional tax, you can have multiple filing and payment dates throughout the year. It\u2019s worth checking you have these dates right for your situation, by talking with one of Afirmo’s tax experts.<\/span><\/span><\/p>\n

Whether you\u2019re a sole trader, partnership or registered company, the <\/span>Afirmo Tax Tool<\/span><\/a> can calculate your income tax, GST, ACC levies and student loan repayments (if you have them). It keeps a running tally of how things stand on a handy dashboard and lets you know when each Inland Revenue payment will be due. You can file returns and make payments yourself, or get an Afirmo expert to check and file them for you.<\/span><\/p>\n

If you ever think you might not be able to pay your tax on time, be sure to contact Inland Revenue before the due date and discuss the support they might have available.<\/span><\/p>\n

Top tip:<\/b> In your first year of business, if you pay tax before the end of the year you might get a handy discount.<\/span><\/p>\n

Claim all business-related expenses<\/h3>\n

Whether you\u2019re self-employed, a sole trader or have set your business up as a company, you pay tax on your profit, not your income. Your profit is your income minus any business-related expenses. These expenses are any money you paid for things that were required to earn the income referred to in the calculation.\u00a0<\/span><\/p>\n

Taxable profit = Income \u2013 Expenses<\/span><\/p>\n

Since you only pay tax on your profit, it is sometimes referred to as your \u2018taxable income\u2019. By claiming all legitimate expenses, you minimise your taxable income and therefore the tax you have to pay.<\/span><\/p>\n

Tips for recording and claiming expenses<\/h4>\n