HUSTLERS

#21 Income Tax, GST, and Registering as a company


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Hey guys. Very recently we registered our small business in New Zealand as a company, as well as registering for GST. This podcast explains what I've learnt so far in this space and how to maximise your benefits from this situation.-A couple things I forgot to mention:-1. By registering your car under the company, you can actually use depreciation of your vehicle as an expense to offset your income tax, not to mention you can claim back the GST against your owing. Depreciation I look at as an invisible expense, you're not actually spending money on depreciation, so could be beneficial, weigh up your pros and cons.2. If you are operating as a sole trader, whatever your business is earning you add on top of your personal earnings and you will be taxed in that earning bracket. Lets say you earn 50k a year personally, and your business earns 30k, everything over 48k (32k) of your earnings will be taxed in the 30% bracket, so depending on your income, this may not actually be benefiting you financially.-Hope this gives a bit of value, chur enjoy
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HUSTLERSBy Carlos Price


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