Don’t forget

IRD have changed their policy on when payments will be considered to have been received on time. Payments made by post are now treated as made on the day Inland Revenue receives them; the date of posting is irrelevant. It’s therefore up to you to make sure you post your cheques in good time to reach IRD on time. There’s no guarantee that a payment posted on the 18th will…  Read more

Health and Safety heads up

It’s expected that the Health and Safety Reform Bill will be passed before the end of the year and that the resulting Health and Safety at Work Act will be implemented in stages, the first stage taking effect from 1 April 2015. The legislation itself is part of a major reform of health and safety practice in New Zealand. The new Act imposes a primary duty on employers, with a…  Read more

Just Breathe – how to cope when the heat’s on

We’ve all heard the saying, ‘the customer is always right.’ Behind closed doors, this may not always be the case but as a business owner, manager or customer services representative, it’s the number one rule you need to follow. By doing so, you can try to defuse a potentially tricky situation and, if you don’t succeed, you can at least walk away with your head held high and your dignity…  Read more

How do you know what to insure?

It’s a bit of a Murphy’s Law principle that businesses often don’t really come to grips with their risk management plan (or the lack of one) till some random accident takes out a key manager or lead hand and it hits everyone what it will mean for the business. No one can plan for everything but every business should have a sound grasp of the kinds of risks that might…  Read more

Miles To Go – Changes Proposed For Motor Vehicles (Autumn 2017)

Currently close companies (such as LTCs and QCs) providing a motor vehicle for the private use of shareholder-employees must pay FBT on the value of the benefit provided. This value is based on the availability of the vehicle rather than its actual private use and this means higher FBT compliance costs for close companies. New option for close companies The recently introduced legislation changes this for the 2018 tax year…  Read more

Upcoming Changes – Provisional Tax and UOM Interest (Autumn 2017)

There has been a raft of legislative change recently introduced which will affect businesses when it becomes effective. At present we are just flagging the changes to you without going too deeply into detail. That said, let’s sketch in how it’s looking. Provisional Tax The provisional tax changes mentioned last year will apply from 1 April 2018. These include the proposed accounting income method (AIM) of paying provisional tax. While…  Read more

Human capital risk – what is it and what do we do about it?

When you are in the process of assessing your business risk and putting together your risk management plan, make human capital risk one of your focus areas. Human capital risk is a term which covers whatever arises out of not managing an organisation’s human capital well. This includes: catastrophic workplace events such as disabling illness, injury or death losing staff to rapid turnover a team member committing fraud or misappropriating…  Read more

Transforming GST (Autumn 2017)

Inland Revenue are rolling out other changes to how New Zealanders file and manage their GST as part of ongoing business transformation. More than half New Zealand’s businesses now file their GST through Inland Revenue’s secure online service myIR, or direct from their accounting software. If this includes your business, you may have noticed there’s a new myGST tab on your myIR account. This will provide access to all your…  Read more

Dialling for a dollar – perfecting your cold call

Most of us loathe the sound of those two words, ‘cold calling’. It can be labour intensive and takes a fair amount of courage. We worry that it can often be seen as annoying to the receiver, putting us at a disadvantage from the beginning. However, if you’re willing to put in some effort, there are some top tips to help you to make cold calls effectively. Result What’s the…  Read more

Selling Across The Ditch – GST On Low Value Goods (Autumn 2017)

Do you sell goods to Australia? If so, you may be affected by new Australian tax rules. At present, goods valued under AUD$1,000 do not generally have Australian GST applied to them where they are sold into Australia directly to the end customer. However new rules will now apply from 1 July 2017 to impose Australian GST on goods valued at $1,000 or less (‘low value goods’), where the supplier’s…  Read more

Call before you click

If you have a company, we’ll let you into a secret. We know, each year when we speak with you about what you want to do about dividends, that the minute we start to talk about imputation credits and the imputation credit account, we watch your eyes glaze over and we know the ‘la la la la la la’ soundtrack is playing in your head. It’s okay. Almost everyone finds…  Read more

Ho, Ho, Ho! Knowing What’s Deductible – Entertainment (Summer 2016)

Do your plans for the festive season include functions to celebrate with clients and the team? If they do, here are some tips on the tax implications When you’re entertaining clients or colleagues, some entertainment expenses are tax deductible while others aren’t. It can be tricky working out what’s deductible as a business expense and what isn’t. The basic idea is that an expense is business-related if you spend the…  Read more

Ho, Ho, Ho! Knowing What’s Deductible – Gifts (Summer 2016)

The rule of thumb with gifts is that if they consist of food or drink, you can only claim 50% of the expense as a tax deduction. If you are giving out gift baskets or hampers and some of the contents are food or drink, but not all, the food or drink items are 50% deductible but the other gift items are 100% deductible. When you come to claim the…  Read more

Buying off the plan? The bright-line test and you (Summer 2016)

We’ve talked before about how changes to tax law around buying and selling property might affect you. Now that the changes are in operation and the bright line test is being applied to determine tax liability, an issue highlighted only recently might leave you exposed. As we’ve discussed before, people who buy or sell a property within two years of acquiring it must pay tax on the gain. The main…  Read more

Filling Employment Gaps Over Summer (Summer 2016)

With the holidays coming up, you may have started to think about whether to employ some extra people over the holidays. If you do, think carefully about the kind of help you need and broadly what kind of employment contract is best suited to the situation. It’s important to make sure you comply with current employment law and have it right from the start. Casuals Casual employees might be right…  Read more

Do You Own Rental Properties? (Spring 2016)

If you gain income from rentals, be aware you need to comply with new rules. On 1 October 2016 changes to the Residential Tenancies Regulations came into force to reflect new standards on insulation. Standards New Zealand’s ‘Energy efficiency – Installing bulk thermal insulation in residential buildings’ provide extended guidelines for insulation installers and building owners. This follows up on changes which took effect on 1 July 2016 requiring all…  Read more

GST Adjustments On Private Use (Spring 2016)

Another area that we notice often confounds clients is how to calculate GST deductions on assets that are partly for business use and partly for private use. You can claim GST but only in proportion to the extent the asset is available for producing income. This is called GST apportionment. Most commonly, this involves a vehicle used for work but also used privately. Lifestyle blocks where there is some commercial…  Read more

Have Your Say On Tax Changes (Spring 2016)

You will have heard ads on the radio from Inland Revenue raising awareness on their initiatives to change the administration of the tax system. Inland Revenue have been working on this for a while, taking into consideration many submissions from different sources. Their website Changing for You provides an overview of some of the things Inland Revenue are proposing to change, mainly focused on automating the gathering and filing of…  Read more

Tax Changes for LTCs: Watch This Space (Spring 2016)

Proposals to change the rules governing look-through companies (LTCs) and closely held companies are currently going through parliamentary hearings and consultations. If passed, the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Bill is expected to take start taking effect from the 2017 tax year. The proposed changes are part of the moves to simplify tax, however there are some proposals which have a significant favourable effect.…  Read more

Further Moves To Tackle Anti-Money Laundering (Spring 2016)

The Ministry of Justice is looking to extend the application of anti-money laundering compliance obligations to more businesses and professions. In a nutshell, since 2013 only financial institutions and casinos as well as the government agencies tasked with overseeing and enforcing the rules had to comply with the anti-money laundering legislation. The Government is now proposing to extend these rules to lawyers, accountants, real estate agents, conveyancers, some additional gambling…  Read more

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