Posted 24/03/2011 Updated 24/03/2011 Tags: Business Employing FBT Income Tax PAYE Provisional Tax Salary & Wages Tax Compliance Terminology  

Here is a brief description of the types of tax that you are likely to come across in business: GST - Goods and Services Tax - this is chargeable by businesses whose annual sales turnover is over $60,000 per year. It... more

Posted 11/03/2011 Updated 11/03/2011 Tags: Business Income Tax Provisional Tax Tax Refunds Tax Returns  

A common myth people often share is that "you don't have to pay income tax for the first year in business". The fact is any profit earned will require income tax to be paid to Inland Revenue, it's more a case of when... more

Posted 3/03/2011 Updated 3/03/2011 Tags: Accounting Business Drawings Employing Income Tax PAYE Salary & Wages Tax Compliance  

There are a couple of ways to pay owners of a business and to account for the income tax on these. The most common way is the owner taking drawings - drawings are withdrawals from the business for personal use. The... more

Posted 20/09/2010 Updated 10/03/2011 Tags: Business Claimable Expenses Depreciation Income Tax Tax Compliance Tax Returns  

People often ask us if it's a good idea to spend money to save tax. The idea is by creating additional expense the business can claim the cost as an expense in the business income tax return. This does work but it... more

Posted 15/09/2010 Updated 15/09/2010 Tags: Accounting Business Record Keeping Tax Compliance  

With so many fantastic options available for small business owners to keep track of their financial transactions we're often asked which is the best way to go. The key is to work through the options and find the most... more

Posted 16/01/2009 Tags: Business Claimable Expenses Depreciation FBT GST Vehicles  

The benefits of leasing a vehicle are: Get to claim the lease as a monthly expense. May have an upgrade option after a certain period with keeping the lease payments roughly the same. Still get to claim running... more

Posted 21/10/2008 Updated 13/01/2010 Tags: Business Employing Income Tax PAYE Shareholders  

Yes your company can become an employer and employ you via the payroll. This means that each pay day PAYE is deducted from your wages and on the 20th of each month the PAYE get's paid to IRD. Your wages become a cost to... more

Posted 17/10/2008 Updated 3/03/2011 Tags: Business GST Tax Returns  

If your expected annual turnover (sales) will be $60 000 or more you'll need to be GST registered. This basically means you'll need to charge your customers 15% more on your pricing for GST - then account for and pass th... more

Posted 17/10/2008 Updated 3/03/2011 Tags: Business Income Tax Structures Tax Compliance  

Sole Trader A Sole Trader is basically when you go out and do something for money but are not actually employed as an employee by a business or person. You use your own IRD number for invoicing and all profits are... more

Posted 14/10/2008 Tags: Business Record Keeping Tax Compliance  

There are several ways you can record and account for your business income and expenditure transactions on a regular basis. These include... Writing up a manual cashbook (or doing an spreadsheet) – this records... more

Posted 8/10/2008 Updated 3/03/2011 Tags: Accounting Business Income Tax Tax Compliance  

When you operate a business, each year you are required to prepare financial reports showing all of the business income and expenditure incurred which will result in an overall net profit or loss for the year. If your bu... more

Posted 7/10/2008 Updated 24/03/2011 Tags: Business Claimable Expenses Income Tax Rental Property  

You are allowed to claim a proportion of your home costs for running your business from home. The percentage claimable is worked out based on the area of your office divided by the area of your home - for example say... more