Proactive or Reactive Tax

Martz Witty

Head of the Martz Group.

For many March 31 spells a new tax year and so many talk about paying more tax than they think they should, as they prepare their records anywhere from April through December. Then they toddle off to their accountant and find it’s far too late to make changes to the tax year past.

It doesn’t have to be that way.

February and March are perfect months to sit down with your advisor and talk through (proactively) planning issues that can be retrospectively applied to the tax year about to finish, and set you up nicely for the year about to start.

Can’t get an appointment with your advisor? Maybe it’s time to change advisors – just a thought!

Do you get told there’s nothing you are doing wrong? There are no additional claims to be had?

Yes it is true – this can happen and in 35 years as an accountant I have struck exactly this situation. Once! That’s right – just once.

It’s crucial you don’t get into the downward facing spiral of pay less tax, pay less tax.

Personally I believe you should pay tax – just no more than you are legally obliged to pay. Besides it is far more fun to focus on how to make more money (which will result in paying more tax).

So if I can offer any viewpoint about business management and tax it is this. Get proactive and not reactive. Focus on being happy to pay tax – just ensure you’re not paying any more than you’re legally obliged to pay. Start this exercise now – not next week or next month. Start it now.

Never assume everything is as good as it can be, there’s almost always a change afoot to help you and your business going forward.

Sometimes you need your eyes opened to the opportunity, sometimes it will be obvious to yourself.

To any readers of Canterbury Today I am offering a free email showing the A to Z of “possible” tax deductions.

Just because it’s on the list does not mean it is deductible – but it might be. This will better arm you when you visit your advisors and do your expense review and work toward tax planning. Email for your free copy.

Author: magazinestoday

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