Whether you are a wage/salary earner, a contractor, sole trader or a shareholder - it is very important to get your Personal Income Tax checked annually as you could be due for a refund.
We have processed some massive refunds - some greater than $5,000!!!
Wage / Salary Earner
If you are normal wage / salary earner - you are probably due a tax refund.
- Dependent on your tax bracket you could be eligible for several tax credits. Tax credits are government incentives for people in the lower tax brackets so that they pay less tax. Tax credits are normally not accounted for by your employer as most of the details required are only available at end of the financial year.
- Payroll Systems are "not accurate to the cent". If you are working shifts or overtime or are on wages - quite often the payroll system can not accurately deduce your tax bracket throughout the year. Most systems use an average over the last 12 months to work out what your tax bracket should be. As a general rule, the payroll systems charge too much tax as opposed to too little. At the end of the year, dependent on how much wage you have received for the year plus other variables - an income tax return needs to be processed to work out what your actual tax was supposed to be.
- You have received other income during the year. A quick example will be received Interest from your bank on savings etc. All banks deduct Resident Withholding Tax (RWT) from your interest payments. Quite often this is higher than your actual tax bracket. Once your annual income is finalised - the interest received and resident withholding tax needs to be accounted and adjusted to your actual tax bracket - not the one the bank assumed you should be on.
Visit "Get Your Refund Now" if you are a wage or salary earner.
If you are a contractor who is paying Tax of Schedular Payments (formerly known as Withholding Tax) usually at 20% or 25%, then you absolutely need to have your Personal Income tax return done by an accountant.
- In addition to everything above for an individual, as a contractor - because you are paying withholding tax at a flat rate e.g. 20% - you may be paying a lot more tax than your are supposed to. The New Zealand Tax system is tiered meaning that tax rates increase based on the level of income e.g. 0-14K @ 10.5%, then from 14K to 48K is taxed at 17.5%.
- Because you are paying tax at a flat rate and the tax system is actually tiered - there will always be difference between the tax you are supposed to pay to what you have actually paid.
- Furthermore - most contractors are not aware that you can claim the cost of tools etc as an expense against your income. We take this into account too.
If you are a sole trader - you definitely need your accounts done. Sole traders need a proper set of financial statements and their tax returns prepared and filed on time. As a sole trader you are subject to provisional tax rules etc and liable for GST as well. In addition, since you are sole trader - you are also an individuals meaning that you still enjoy the tax credits etc applicable to individual tax returns.
We Review All Possibilities
While most “tax refund” companies will only look at the basics to get you a refund, we look at it more comprehensively to see whether there are more avenues for you to get a refund including: Resident Withholding Tax (RWT) deducted on interest earned, Redundancies, Working for Families Tax Credit Eligibility, Independent Earner Tax Credit, Student Loans etc...
We get you the Maximum refund possible.
Most of the above will reduce your income tax liability over the year. We find that most clients that get us to look at their personal income tax comprehensively are due for a refund or an increased refund than just a basic check.
Our Fee is Refund Dependent
- NO REFUND - NO FEE .... that's right - we will do all the above and try to get you as much refund as possible ... but if for some reason we can not then there is simply NO Fee.
- Refund of $50 or less - NO FEE ... no kidding ... if you get a refund of less than $50 - we will do all the paperwork and process the refund for absolutely Free.
- Refund greater than $50 - Fee of only 10% of Refund amount