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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.

If you have investments in PIE’s (the most common one being a KiwiSaver account), you need to make sure the income is being taxed at the correct rate.  For a New Zealand resident individual, the correct Prescribed Investor Rate (PIR) is based on your income for the last two years.