Tips for Buying a Rental that needs Maintenance

Often people buy a rental property that needs a bit of work done to it - they then get the keys and undertake repairs and maintenance that can cost a few thousand dollars. The property is then looking all good and they put it to the market to find a tenant. In this instance all of the costs to repair the property will be capitalised - added to the purchase price of the property - no tax claims av... More

Topics: Claimable Expenses Rental Property Depreciation Record Keeping

Posted 1/10/2014

Due Dates for October 2014

PAYE: 1 Monthly PAYE return and any payment for September is due 20 October. GST: 1, 2 and 6 Monthly GST returns and any payments for period end 30 September is due 28 October. Provisional Tax Instalment: For provisional tax payers who pay twice yearly (often are 6 monthly GST registered) the first instalment for 2015 Provisional Tax is due 28 October.  Any questions please ask. More

Topics: Due Dates

Posted 1/10/2014

Claiming for Using Your Home as an Office

When running a business from your home you are entitled to make a claim for the costs associated with this. Inland Revenue require you to determine the office area as a percentage of your whole home for these claims. To work this out you need to create a plan of your house (if you haven't one already) to calculate how many square metres it is in total - then work out the total square metres used ... More

Topics: Claimable Expenses Business Record Keeping Tax Returns

Posted 30/09/2014

How Much Can I Pay Myself from My Business?

People often ask if there's a general rule about how much they can take from their business as 'wages'. Our suggestion is to work backwards, especially when you are still in the early stages of business where cashflow is a bit up and down. If you can ensure there is enough money in the bank account to pay all business costs, loan repayments and you're putting some money aside for income tax and GS... More

Topics: Business Salary & Wages Drawings

Posted 29/09/2014 – Updated 30/09/2014

Claiming on Meetings at Cafes & Restaurants

Sometimes you might take employees, clients or prospective clients out for breakfast, lunch, dinner or a coffee and muffin to discuss work related matters. IRD allow you to claim 50% of these costs as an entertainment expense. If you are GST registered you can only claim 50% of the total cost for GST and also 50% for your annual accounts and income tax. As good record keeping practice write down ... More

Topics: Claimable Expenses Record Keeping Employing Entertainment

Posted 26/09/2014

What is a Dividend?

A dividend is an allocation of profits from a company to its shareholders. In small businesses it usually works like this - a company has made a profit for the year and paid income tax on that profit at the company tax rate of the time (currently 28%). The shareholders have not yet had the use of this money. When the shareholders decide they'd like to withdraw this money from the company a divid... More

Topics: Income Tax Shareholders Tax Returns Terminology Company

Posted 25/09/2014 – Updated 30/09/2014

What is Better - Drawings or Wages?

Clients often ask which is the best way to pay themselves from their company - drawings or wages? Here is an explanation of the differences. Drawings Taking drawings from your business is not a tax deductible cost - you should be aware that you will need to put aside a bit of money for income tax as well. For example say you take $800 per week drawings you want to be saving at least an additiona... More

Topics: Employing PAYE Salary & Wages Drawings KiwiSaver

Posted 24/09/2014 – Updated 25/09/2014

What is Provisional Tax?

When you first go into business you don't actually have to pay any income tax to IRD for quite some time (unless you are going to be earning over $180K in profit for your first year - then different rules apply). So say your first financial year will end at the 31 March 2015 - then your financial accounts and returns are prepared and any income tax payable for that year is due to Inland Revenue b... More

Topics: Income Tax Terminology Provisional Tax Starting Business

Posted 23/09/2014 – Updated 30/09/2014

Closing Your Business and GST Claimed on Assets Kept

A reminder that if you decide to end your business (or sell it) but want to keep some of its assets (and you have claimed GST on these assets) you will have to pay some GST back to IRD based on the current market value of the assets kept. Also IRD have a helpful video about closing down a business... More

Topics: GST Tax Compliance Guides Private Use

Posted 22/09/2014 – Updated 23/09/2014

New Team Member Starting Monday

We're excited to welcome Nicky Coombs to Kiwitax. Nicky will be taking care of our office administration and helping the client care team, allowing Rowena to move to full time client care role. Nicky is a super lovely person and will be a wonderful addition to the team. More

Topics: Kiwitax News Client Care

Posted 19/09/2014

Due Dates for September 2014

PAYE: 1 Monthly PAYE return and any payment for August is due 22 September. GST: 1 Monthly GST return and any payment for August is due 29 September. Any questions please ask. More

Topics: Due Dates

Posted 4/09/2014

New Website Now Live

Our new website is now live! Some changes we hope you enjoy are... Refreshed mobile friendly design. More secure client sign in are for uploading files with a nice drag and drop uploader. Combined the News and Infobase now called Updates - we'll post due dates here too each month. The calculators have been tidied up and a new hourly rate calculator added. If there's a calculat... More

Topics: Kiwitax News

Posted 3/09/2014 – Updated 4/09/2014

New Website Coming Soon

We're almost ready to press the go button for our new website. There's some final polishing happening and will be live in the next week or two. Please note this website uses a newer more secure membership system so if you've created a sign in at our current website (for uploading files etc.) you'll need to create a new one at the new site. Some changes and improvements to look forward to... Com... More

Topics: Kiwitax News

Posted 20/08/2014

July 7 Deadline

A quick reminder if you / your business has an accountant / tax agent the 7 July deadline most likely isn’t for you, an extension of time to 31 March applies. The main reason the extension wouldn't apply is if tax returns weren't filed with IRD in time for last financial year. This means for Kiwitax clients, don't panic! (Unless you didn't have your income tax returns in to IRD by the due d... More

Topics: Income Tax Tax Returns Due Dates

Posted 2/07/2014

Calling Trade Me "In Trade" Badge Traders

With the new Trade Me "in trade" badge coming into effect for sellers on 17 June 2014 - it will become very easy for IRD to identify which traders are "in business". These people are required by IRD to keep proper records and prepare business accounts and file income tax and possibly GST returns. If unsure about this or not already set up we highly recommend discussing how best to go forward with... More

Topics: Income Tax Accounting Business Tax Compliance

Posted 12/06/2014