Tuesday, 9 July 2013

Tax tips, part 1: income for individuals

It is tax time in the MoH household. 

I have a time-tested routine to complete my tax return, developed over a number of years:
  • First I procrastinate. 
  • Next I do a quick first run-through of my return myself using e-Tax, filling in estimates where I don’t have the details to hand.  This gives me a tantalising idea of what my refund might be, which gets me motivated to scrape together all the missing statements, tax invoices, etc.!
  • Then I locate all the missing pieces and go through the return in detail reading the full set of instructions and seeing if there are any opportunities (particularly for deductions) that I have missed out on.
  • Finally I send off the return and await my refund!
Occasionally I need to seek professional advice.  Managing employment income and interest and dividends is pretty simple.  But when I had an investment property, and now when I’ve started a small business, there are lots of rules (and opportunities) that can warrant professional advice.