Often people ask why it is that rich people never seem to pay their fair share of tax. In fact, they do pay their share, but they also get advice to make sure that they pay only what they have to pay. The difference is that they actively seek advice, because the benefits are clear.
The key to all great advice is to get it as early as possible and to check in regularly as things change. Not only for income tax, but also for other types of taxes as discussed below.
It’s not expensive but it is very valuable!
Some areas to consider are:
Effective Tax Structures
A company is not always the best structure for businesses to trade under. Each person’s situation is unique and there are a lot of issues to consider. Issues such as your family situation and the real risks around your business.
Whilst it may not matter now, it can have large impacts in the future.
Capital Gains Tax (CGT)
Simply put, Capital Gains Tax is payable when you sell an investment for more that you bought it. Some planning can make sure that you understand when it is triggered and what your options are. There are some areas which if considered at the outset can avoid paying unnecessary tax.
Fringe Benefits Tax (FBT)
Fringe Benefits Tax is an area which is misunderstood by most businesses. A Fringe Benefit arises when a business provides anything to its owners, employees, or associates of those, other than salary or wages. The most common is the use of a motor vehicle, however, there are many other benefits which can be caught up in the definition for tax purposes.
It’s also has implications for Christmas, and other celebrations, staff discounts and so on.
It is worthwhile discussing this aspect of your business with us.