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

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Rental Property Rules Changed 1 October 2015

Just a reminder that new property rules have come into effect from 1 October 2015 and the biggest impact is the addition of a “capital gains” tax on properties if you buy and sell within a 2 year time-frame. There is a main home exemption, however this can also fall under the new rules if you’re regularly upgrading. It is best to check with us BEFORE you make any decisions about ... More

Topics: Rental Property Tax Compliance Family Home

Posted 19/10/2015

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New Property Capital Gains Tax

In the recent budget the government announced that they are introducing a capital gains tax coming into effect in October, for properties that are sold within two years of being purchased. It is important to understand these changes will not impact your main family home and will only impact properties purchased on or after these changes come into effect. The changes are designed to ensure tax pay... More

Topics: Rental Property Tax Compliance

Posted 15/06/2015

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Record Keeping – Retail and Hospitality

A reminder that if you are running a till system for your daily takings, try and reconcile each day to the money received. Inland Revenue are increasing their review activity and one of the main source documents they ask for are the till receipts. They’re looking to see if the till receipt totals are significantly different to the amount of money banked – so just a heads up to be dilig... More

Topics: Record Keeping Tax Compliance

Posted 24/04/2015

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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

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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

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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... http://www.ird.govt.nz/help/demo/closing-bus-vid/ More

Topics: GST Tax Compliance Guides Private Use

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

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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

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Ensuring Continuity of Rental Property Expense Claims

If your rental property is untenanted and you're taking the opportunity to do some repairs and maintenance do ensure the property remains available to rent during this period. Perhaps have a sign up and/or keep advertising alive. This helps ensure you can continue to claim expenses during the untenanted period. If buying a rental property ensure it's available for rent before launching into any... More

Topics: Claimable Expenses Rental Property Tax Compliance Guides

Posted 16/09/2013

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New Mixed Use of Assets Rules

The government are changing the tax rules around private use of assets such as holiday homes, boats, aircraft and so on (not road vehicles though). The idea is to prevent people having assets setup as businesses but not sufficiently hiring them out yet still claiming expenses to reduce tax. For all people who own such assets and also use them privately either personally or for friends and family t... More

Topics: Claimable Expenses Rental Property Record Keeping Tax Compliance Private Use

Posted 15/07/2013

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Coming Soon - 8 July 2013 - Do You Have a Tax Agent?

With 8 July 2013 income tax return due date (for filing 31 March 2013 returns) quickly approaching now is the time to have your income tax returns filed if you do not currently have an extension of time. From Inland Revenue's website... 8 July is the due date for filing income tax returns if you don't have a tax agent with a valid extension of time. You may need to file a return if you are self... More

Topics: Tax Agents Tax Compliance Due Dates

Posted 1/07/2013

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Removal of Depreciation on Buildings for Tax Deductions

From the 1 April 2011 financial year and onwards, there is no longer the ability to claim depreciation on buildings with an estimated useful life of 50 years or more. However chattels (for example stoves, carpets, dishwashers etc) are still able to be depreciated. This rule change will predominantly affect rental property investors and will have the result of creating less loss or more profit whi... More

Topics: Claimable Expenses Rental Property Depreciation Tax Compliance

Posted 3/03/2011

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Important Changes to Claiming Building Depreciation

A significant change this year is depreciation can no longer be claimed on most buildings. Currently depreciation on buildings is treated as a loss of value and is used to offset income generated. This change has been made as it is rare for a building to decrease in value yet tax payers could effectively devalue buildings to reduce tax. For people or businesses with buildings who are currently cla... More

Topics: Income Tax Claimable Expenses Rental Property Depreciation Tax Compliance

Posted 8/02/2011

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1 October 2010 Tax Change Links & Resources

Here's a list of helpful links to articles and resources for the upcoming 1 October 2010 tax changes. In General Kiwitax - 1 October GST & Income Tax Changes Update Inland Revenue - 1 October 2010 Checklist 2010 Budget Tax Guide and Calculators Stuff - Inland Revenue Sponsored Section 15% GST Changes Inland Revenue - GST for Businesses Inland Revenue - GST Rate Change Guide (GST... More

Topics: Tax Compliance Links Guides

Posted 13/09/2010

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1 October GST & Income Tax Changes Update

As you're most likely aware there's rate changes happening to GST, Income Tax and also FBT on 1 October 2010. Here's a brief overview of how this may affect you and some steps you may need to take to ensure a smooth transition. GST Changing from 12.5% to 15% From 1 October 2010, if you are GST registered, you will need to add GST at 15% to any products or services you sell. This change may affec... More

Topics: GST Tax Compliance

Posted 18/08/2010

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