Tax pooling allows you to buy someone else’s tax overpayments, and use these to settle your outstanding taxes with Inland Revenue at the original due dates. We use Tax Traders Limited, who are an Inland Revenue approved tax pooling intermediary, for this. This can assist you with reducing interest/penalty charges applied by Inland Revenue or with cash flow relating to tax payments.
Previously companies which owned motor vehicles that were available for private use, had limited options for accounting for the private use of the business vehicle. Recently the rules have changed and now if you purchase a vehicle through a company, you have several options on how to account for the private use.
Just a brief reminder for those who own residential rental properties. Effective from this current financial year (the 2019/20 tax year) onwards, any rental losses you make can no longer be offset against other income earned. Instead, these losses will be carried forward and applied against future residential rental profits.
The Covid-19 crisis has, and will continue to have an impact on many businesses. The Government and Inland Revenue have put in place a number of initiatives to assist businesses and tax payers who are struggling because of the effects of the Covid-19 crisis.
With the recent arrival of new community transmitted cases of Covid-19 and the country moving up in alert levels, you are probably aware that the government has extended the wage subsidy scheme. If eligible, you can apply for a further two weeks of subsidies.
An update on various Covid-19 specific topics
So that you are aware, we have two boardrooms at our office which are available for clients to use for meetings if required. You may have a meeting that you either want to keep confidential, or hold away from your business premises, or you may simply not have the space needed at your premises.
If you own residential rental property, the rules have changed from the 2019/20 tax year onwards, with regards to any losses made.
Rental losses (i.e. where your tax deductible rental expenses exceed your rental income) can no longer be off-set against other income such as business income, wages, interest and dividends. Instead, rental losses will be carried forward to use against residential rental property profits in a future year.
Have you ever gone to enter a figure in Xero only to reach for a calculator to work out the amount first? Did you know that Xero has an inbuilt calculator for basic calculations within transactions, invoices, bills and manual journals?
As we have previously mentioned, from 1 October 2018 we are required to comply with this Act. The purpose of the Act is to detect and prevent Money Laundering and Terrorism Financing in New Zealand. It has been deemed that the services we offer may be attractive to those involved in criminal activities, especially as using us would provide a perception of legitimacy to these criminals.
Inland Revenue and ACC have indicated that from 1 March 2020 they will no longer accept payments by cheque, from customers who are able to use an alternative payment option.
From 1 December 2019 the new “Amazon Tax” came into play, adding GST on to all purchases from overseas. Previously, most small value items bought from overseas were free of GST.
From October 2018 Chartered Accountants are now required to undertake due diligence on all prospective, and existing clients. This is as a result of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Law).
Here’s a tip to help speed up the process of logging in to Xero and to avoid having to enter both your username and your password.