Topic: Business - Kiwitax - Small Business & Rental Property Accountants

What is Depreciation & How Does it Work?

As a business owner or property investor you’re entitled to make a tax claim for depreciation – but what exactly is depreciation? It’s best described as the devaluation of your assets over a number of years and different assets have different life spans so that’s why the depreciation rates differ. An asset is defined as an item costing over $500 which will be used on an o... More

Topics: Income Tax Claimable Expenses Depreciation Accounting Business

Posted 23/07/2017

Increased IRD Mileage Rate

The IRD's mileage rate has been increased to 73 cents per km (up from 72 cents) effective for the 2017 financial year. This applies to both petrol & diesel fuel vehicles. The increase is largely due to higher average fuel costs and a slight increase in fixed vehicle costs during the 2017 Financial Year. For the first time, they have also set mileage rates for hybrid & electric cars. These... More

Topics: Claimable Expenses Rental Property Accounting Business Inland Revenue Vehicles Contractors

Posted 19/05/2017

New Tax Codes for Contractors

From 1 April 2017, if you are hiring any contractors that are required to have withholding tax deducted, or are a contractor yourself the IRD have issued a new form to be filled in from April 2017 onwards. Contractors providing labour hire services, such as Recruitment Agency or IT Contractors, are required to have these deductions made no matter the structure their business activity is under. Pr... More

Topics: Income Tax Business Tax Compliance Withholding Tax Inland Revenue Contractors Links Schedular Payments Starting Business

Posted 31/03/2017

100% Claimable Exercise Programmes

IRD have teamed up with the Exercise Association of New Zealand with an initiative called SMEAEP: Stress Management Exercise Association Endorsed Programme. The idea behind the initiative is that exercise and lifestyle changes play a huge role in managing stress levels in the workplace. If you are an employer, there is no FBT adjustments on SMEAEP endorsed programmes which you provide to your emp... More

Topics: Claimable Expenses Accounting Business Employing Links

Posted 20/03/2017

Business Health Check

The end of September marked the half way point for this current financial year. While it is recommended you assess your year to date trading throughout the year, months can fly by, and 31 March 2016 will come around pretty quickly. This is a good time and reminder to do a quick 'health check' on your business, and think about the past 6 months trading, and what the next 6 months may bring. Compar... More

Topics: Business Client Care Cashflow

Posted 19/10/2015

Understanding Current Accounts

One topic clients are often confused about is current accounts and we're often asked to explain how these work. What are current accounts? They are how accountants record and report a business owner's investment in their business (and / or rental property). When a business first begins the owner usually invests some money to buy assets and stock, pay rent, spend on advertising and so on. For an e... More

Topics: Rental Property Business Drawings Guides

Posted 20/07/2015

Leased Buildings and Broken Windows - Who Pays?

An interesting heads up for anyone leasing a building and for building owners.. Recently a mower launched a large rock through one of our windows resulting in an approximately $1000 bill. The building is leased and the lease states that we are responsible for the cost of replacing the glass so we contacted our insurance people to make a claim... We were advised there was a property law change ... More

Topics: Rental Property Business

Posted 3/02/2015

ACC Levies - Options to Save or Increase Cover

ACC have a plan that allows self-employed people and non PAYE shareholder employees to negotiate the level of compensation (subject to ACC approval) called ACC Cover Plus Extra. This allows you to dial down your cover (or increase it if required) and you won't need to prove your earnings when making a claim, which is required with the standard ACC plan. ACC Cover Plus Extra can be really benefici... More

Topics: Business Tax Compliance Salary & Wages ACC Levies

Posted 26/01/2015

ACC Levies Explained

ACC levies for people in business and now rental property profits are payable based on the profit generated from your trading activities. They are also payable on the gross wages paid to your employees. ACC levies are compulsory to cover you and your staff for personal injuries. There are concessions though if you are only part time in your business. Once your income tax return is filed for a yea... More

Topics: Business Tax Compliance Guides ACC Levies

Posted 26/01/2015

Debtor Payments Slow Coming In?

If you're finding your customers are taking too long to pay and it is creating cash flow headaches it could be worth investigating invoice factoring. This is when a third party pays you immediately a percentage of your invoice (around 80%), they then collect the funds from your client and pay you the balance less a commission once the client has paid. This way you are getting paid as soon as you ... More

Topics: Business Links Cashflow

Posted 15/01/2015

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 22/12/2014

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

How Do I Become Self Employed?

New Zealand is one of the easiest countries in which to start a business. It's really as simple as finding something which will generate profit and going for it - well almost. Here's a quick guide for people who are currently in employment and are curious about becoming self-employed or those who are looking for work and perhaps considering creating their own opportunities. This is more aimed for ... More

Topics: GST Business Record Keeping Contractors Guides Starting Business

Posted 9/11/2012

Paying Children Wages? Heads Up!

If you employ children in your business there's been some significant changes with regard to their taxation. Currently our understanding is as follows... From 1 April 2013 if your business employs school children you will need to do their wages through your payroll and deduct PAYE / income tax. This will apply to all businesses and school children employees. School children who do cash jobs li... More

Topics: Income Tax Business Employing Salary & Wages Guides

Posted 15/10/2012