Why you get more money out with Hive Club

04.10.21 06:45 PM Comment(s) By Ivo van Onna

Get tax benefits for business owners, without running a business

Unless you've already set up your own company, like a Sole Proprietor or PTY Ltd., you are currently paying income tax on your revenue. The highest taxation possible. To reduce your tax, you need to work through a company. And, unless you join Hive Club, that comes with its own challenges. 

Freelancers and contractors who sign up as Hive Club members, become owner/employees of Hive Club: a working, running business that does all the admin that comes with a small business for you, so you don't have to. Less admin.

You become an owner of Hive Club in proportion to the amount of revenue you bring in. If you bring in R100.000/month, you are the owner of Hive Club at the value of R100.000/month. Simple. As an owner, you are allowed to deduct expenses from your taxable income that you wouldn't be able to deduct if you were taxed as an individual. For example your business expenses. A lower taxable income means less tax. More money for you.

And as an employee, you get employment benefits to help you secure your financial future, for example by saving up for emergencies or temporary unemployment. In addition, Hive Club helps you paying off your debt quicker, so you can free up money for other things. Like your retirement.

What's interesting, is that when you pay less on debt, you need less personal income, which means you need to spend less to secure your personal income, which means you lower your taxable income twice, resulting in even lower taxes. So R100/month less in debt repayments sometimes results in R240 in extra money for retirement (depending on your income tax level). And with compounding interest on his retirement savings over time, means a lot more income at retirement age. Recently we saw a member doubling his retirement income by spending R2000/month less!

You can do all of this for yourself, set up and run your own business, learn about what you can deduct and what you can't. You can hire your own accountants, tax-advisors and lawyers. Probably go through a few before you find the right ones. Figure out a way around the Personal Service Provider clauses in tax law when you're working for only one client and don't have employees. Or, if you don't figure it out, run the risk of getting taxed on your revenue after all. 

Or you can just join Hive Club. Less admin. More money.  

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