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Christmas Present Tips for Guys

Christmas Shopping Tips for Guys

giftgreen1Most of us guys are useless at Christmas shopping. Here's a few tips I've picked up over the years.

Ladies, you might want to share this with the men in your family to avoid getting an undesirable and badly wrapped present this Christmas.

  1. Buying your Christmas presents at a petrol station or dairy on Christmas morning really isn't the done thing - apparently not everyone wants a funnel, box of biscuits or a car care kit. Don't do it.
  2. Get started early, no not on Christmas Eve, yesterday was already too late.
  3. First thing in the morning is the best time to Christmas shop, and I mean first thing, teenagers are still in bed.
  4. It's not the thought that counts, it's how MUCH thought that counts.
  5. Cash is a GREAT present for teenagers - and me.
  6. If you must give gift vouchers make sure they are from a shop the recipient actually shops in and try and avoid those with an expiry date.
  7. Wrapping and cards are important, you and I know it's just paper but for some reason they are important.
  8. Before you start browsing in a shop check that it does gift wrapping and accept the service - wait if necessary. If the shop doesn't do gift wrapping move on to the next. Unless you are an expert present wrapper - Yeah Right!
  9. Even if every present you buy is gift wrapped, buy plenty of wrapping paper and sellotape. You are going to need it because dairy's and petrol stations don't gift wrap and being a bloke you'll probably ignore number 1.

Guys ignore the above at your peril and have a wonderful Christmas.

Posted in Taxation.

Are You Giving Money Away?

Tax MicroscopeIf the PIR rate loaded on your investments is too high you are giving money away.

The Portfolio Investment Entity (PIE) regime commenced on 1 October 2007, and with its creation a new method of taxation for PIE managed funds was established.

Prior to the introduction of the PIE regime, investor's earnings in managed funds were taxed at the company tax rate of 33%, however the PIE regime brought about a more equitable tiered rate of taxation for investors in managed funds. Including KiwiSaver.

The current structure of the PIE regime means that the PIE's income is attributed to its investors, based on their shares of the PIE, and is taxed at each investor's prescribed investor rate (PIR), which is capped at 28%.

If you don't advise the Managers of the PIE of your PIR rate thay are required by law to apply the highest rate of 28%.

The 28% rate applies if your total income in BOTH of the two previous income years was $70,001 or more.

If your correct PIR rate is lower there is no provision for you to reclaim the overpaid portion.

Your KiwiSaver scheme is a PIE.

If you have not advised your KiwiSaver Provider, Bank or Investment Manager of your correct PIR you are giving money away.

Many people are automatically assigned to a KiwiSaver Fund when they start with a new employer. You might assume that as it's done through the IRD your correct rate would be applied - it isn't. The maximum rate is applied by default.

It would appear most people automatically enrolled into KiwiSaver have never bothered to apply their correct PIR rate. But don't tell them - if they pay more than they need to it helps keep our taxes down.

You can work out your correct PIR rate by going to the IRD website here

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