How do you avoid paying tax on your money?
Tax experts say the answer is to keep your money in the hands of trusted advisers and get some advice from your bank.
Key points:Tax advisors say it’s easier to save in a bank account than it is to pay in cash How much should you save in cash?
Some people have found they save more than they spend in cash, according to experts.
“You could do a pretty good job in a savings account if you have a decent level of savings,” says Stephen Wilson from tax and finance firm Lighthouse Investments.
“But if you don’t have a lot of money you might need to look at some of these options.”
One of the things we have noticed is that if you are looking at some people’s bank accounts, the people who are doing very well are actually putting more money in than they are out, so they are actually saving more money than they’re spending.”‘
We’ve been there’While there are many benefits to using a savings scheme, there are some drawbacks.
The savings system doesn’t always cover your full expenses, so you may be unable to make good on your loan payments or be able to borrow money for your house or car.
And your income can fluctuate wildly over time.
If you’re a bit worried about the future, there is always the option of going to a tax lawyer or tax adviser.
But Mr Wilson says he doesn’t think these options are ideal.”
If you are using a credit card or checking account and you are a bit hesitant about whether it’s going to be a good investment, then there are a lot more options available to you than if you’re using a bank,” he says.”
In a tax law world, it’s pretty simple to just get advice on what you can and can’t do.
“That’s the good news and the bad news is that sometimes that advice is more complicated than the advice you get from your tax lawyer.”
Mr Wilson says most people who go to tax advice are not going to make mistakes.
“It is the case that people who get advice about a tax situation tend to make better decisions than people who don’t, so it’s a good thing if people can see that and be able see that there are ways they can make better choices, rather than simply saying ‘Oh I’m a tax dodger’.”
I think a lot people think they can just make an honest mistake and they’re going to get away with it.
“The advice that people get from tax advice is really quite complex and they are really good at finding out what is going on and how you can do things better, so if they have the opportunity to do that, I think that’s really important.”
Topics:tax,investment,money-and-monetary-policy,government-and,government,business-economics-and.consumer-protection,business,financial-markets,credit-default-rating,debt-and/or-creditor-default,credit,debts-and ofconsource,wealth-management,business/financial-services,australiaContact: Mark Stedman, [email protected] stories from Australia