Whenever you get paid into your Hnry Bank Account, we automatically calculate, deduct and pay the exact right amount of all your taxes, before immediately passing your money on to you.
Hnry customers find that there are massive benefits in having the peace of mind of knowing their taxes are always paid up to date, and that they are only ever paying exactly the right amount of tax. Compared to the old way of them having to manually put aside a set fixed percentage of income, and hoping that would cover their tax (and always worrying that they had put aside too much or too little), Hnry customers would rather pay exactly the right amount every time they are paid.
This gives the benefits of:
- Knowing that what you have in their pocket is always theirs to keep/spend
- Never having to think about tax payment dates, or remember to make payments
- Never having to worry about unexpected tax bills
- Not having to make Provisional Tax or Terminal Tax payments
- The ability to go into, and out of self-employment quickly and easily, with no on-going tax requirements
Couldn't I earn interest if I hold on to the money?
With interest rates being so low these days, and with tax payments being so frequent throughout the year anyway (e.g. Provisional Tax, Terminal Tax, GST, ACC, Student Loan payments) the amount of interest people would actually be able to earn on any held income is very low, and is often outweighed by the downsides:
- Having to make manual tax payments regularly throughout the year
- Often putting away too much, or too little money
- Having to spend your own time, shuffling money between bank accounts for very little gain
- Having to remember tax payment dates
- The danger of accidentally spending your tax money, and then being penalised by the tax authorities
For more information on the time that Hnry saves you, compared to the old way of doing things, check out our Admin Calculator here: