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Accounting Principles

Understanding accounting is crucial. It is one of the most important skills for business owners, investors, and creating wealth. High net worth families and our most profitable clients understand accounting and the difference between cash and profit. This article’s purpose is to help you understand one of the core concepts of accounting, accrual accounting. Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs, rather than when cash is rec...

Company Office Annual Returns

Every company in New Zealand is maintained in a company register called the New Zealand Companies Office. This register has a list of every single company in NZ (both private and public), and includes the key details of the company; its name, incorporation date, directors, shareholders, founding documents, shareholding changes, etc. This information is available to the public to view, and search. For example, Air New Zealand Limited (a listed company) details can be found here. This is all publi...

Signed tax returns

We are still waiting on a number of signed tax returns to be returned to us. We cannot file your tax return with IRD until we receive the signed copy back from you. Please urgently return these to us so we can file them with IRD before the due date.Please, can you please email this to Nicky as soon as possible. ...

Preparing for Interest Rate Rises

Interest rates have increased from 2% last year to floating rates of 4.79% as of today. If your current mortgage is coming off a fixed term portion, you could be in for a surprise. No one has a crystal ball, or where rates will be this time next year, or in a few years. The intention of this article is to start thinking about what effect this will have on you. This article will outline some tips you can do to prepare and think about now:...

Omicron and your business

The Omicron virus is here, check out the latest government information on what you need to do and ensure you have a plan for your business and your family.  https://www.business.govt.nz/c......

Superannuation Eligibility is changing

There is a new law coming for those turning 65 years old on or after 1 July 2024. Whether you were born in New Zealand or overseas, it will require people to have been in New Zealand for a minimum of 20 years since the age of 20, instead of the current 10-year minimum.  Something to think about if you are in this category. For more information click here...

Family Tax Credits Increasing

Legislation has been passed and Family Tax credits are increasing from 1 April 2022.   Over 300,000 New Zealand Families will receive extra government assistance via the Family Tax Credit, Best Start Tax Credit and the Minimum Family Tax Credit. Click here for further information. ...

COVID 19 - December update

We are still dealing with the ever-changing environment of what Covid 19 is doing to you, your business and life.  2019 seems like a long time ago when everything appeared to be simpler. The Government continues to support businesses under the new COVID Protection Framework that came into effect on 3 December 2021. The following support is available (subject to meeting eligibility criteria)  Resurgence Support Payments and Transition PaymentWage Subsidy Short Term Absenc...

GST Due Dates for 2021/2022

We have listed all GST return and payment dates below. We will be providing regular updates throughout the year, however you may wish to set calendar reminders to ensure these important dates are not missed.  15 Jan - GST return & payment is due for period ending 30 Nov 2021 15 Jan - Provisonal tax payments are due if you have a March balance date 28 Feb - GST return & payment is due for period ending 31 Jan 2022 7 Apr - Terminal tax payments are due if you have a March balan...

COVID-19 Resurgence Payment Update

There is additional business support being made available in the form of the COVID-19 Government Resurgence Payment.  The next payment, which is available from 29 October through myIR, will remain at the current rate of $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTE.  Subsequent payments will be for $3,000 plus $800 per FTE, still up to a maximum of 50 FTE.  The frequency of the payments will also change. They will be available fortnightly...

AirBnB and your Property

There have recently been significant tax changes to how residential rental properties are taxed. These fundamental changes include ring-fencing of rental losses, removing interest deductibility, and increasing the bright-line test from five to ten years. AirBnB properties are classified as residential land and therefore (most) the recent tax changes do affect AirBnB activity.  Under the definition of residential land, an Air BnB does not qualify as a commercial property as the land used is ...

GST Payment Date extended

GST payment date for 28 October has been extended to 4 November 2021 Taxpayers will have an extra week to file and pay GST and income tax currently due on October 28 this year. This is in response to Inland Revenue's systems shutting down for their final Business Transformation release from 3pm Thursday 21 October until the start of business on Thursday 28 October.See the IRD website for details click here...

NZ Government launched cryptocurrency inquiry to understand benefits and risks

An inquiry into the nature, impact and risk of cryptocurrencies has been announced by Parliament’s Finance and Expenditure Committee. It will look into the nature and benefits of cryptocurrencies as well as the risks to both users and Aotearoa as a whole. Tim was recently interviewed by Newshub for his thoughts on the announcement of the review. While this is probably the largest media exposure of cryptocurrency tax, the content of the article does not contain much information to hodlers.At th...

Cozy Corner Building - World Famous in Cambridge

Our premises in Cambridge are located in a building called The Cozy Corner that was built in the 1920's. Jane and Tim have breathed new life with the recent renovations that were completed in 2020.  Our local newspaper, the Cambridge News featured The Cozy Corner recently. The article was written in conjunction with the Cambridge Museum as part of a regular History of Cambridge column.  Check out the story about our Cozy Corner and her illustrious and sometimes saucy past.......

Covid-19 Resurgence Support Payment

The COVID-19 Resurgence Support Payment helps to cover wages and fixed costs for businesses who have been directly affected when there is an increase to Alert Level 2 or higher for a week or more.  To be eligible, your business must have experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, due to an increase in Alert Levels.You can receive $1,500 per business plus $400 per full-time employee (FTE), up to 50 FTE.The maximum pay...

COVID 19 - Short Term Absence Payment

The COVID-19 Short-Term Absence Payment helps businesses keep paying employees who cannot work from home and: need to stay at home while waiting for a COVID-19 test result.need to stay home and look after a dependent child who has been asked to get a COVID-19 testlive with someone who has been at a location of interest and need to stay home while they wait for the person in the household to get a negative test result. Employees on a casual contract are also eligible for the payment. You can get ...

Government Loans - Small Business Cashflow Scheme

If you employ 50 or fewer staff, you may be able to apply for the Small Business Cashflow Loan Scheme. This is a one-off 5 year loan. You can borrow a maximum of $10,000 plus $1,800 per full-time-equivalent employee within your business. When applying for the loan, you need to be able to declare that your business is viable.Your business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month, compared with the same month last year. You can use the R...

COVID-19 - Leave and Self-Isolation Scheme for Business Owners

The government has announced a COVID-19 leave payment scheme to provide support. What does this mean for business owners? If your employee has been asked to self-isolate by a doctor or health official, they legally must stay home until they are told they no longer need to by public health officials.If an employee cannot work from home while self-isolating, you may be able to apply for financial support so they can continue to get paid. The purpose of the leave scheme is to provide employees...

Covid-19 Wage Subsidy for Employers

The government has put together a wage subsidy package for employers that are affected. If your business cannot operate because of Alert Level 4 restrictions or you will lose revenue, you can apply for the COVID-19 Wage Subsidy scheme to help keep paying your staff and protect jobs. Businesses and self-employed people must expect a 40% drop in revenue to be eligible to receive the wage subsidy.  The wage subsidy is paid in a 2 week lump sum. You can get: $600 per week for each ful...

Annual government Kiwisaver contribution - don't miss out!

The government will contribute $0.50 cents for every dollar contributed to KiwiSaver, up to a maximum of $521.43 each year (for those over 18 years old). This is called the annual government contribution.  Individuals must contribute at least $1,042.86 every year between 1 July and 30 June to be eligible for the full government contribution. Make sure any contributions are made prior to 30 June 2021 to take advantage of the $521.43 annual government contribution....

Wages vs Shareholder salary

We often get asked the question “what is the best way to pay myself as a business owner?”  Remuneration is usually paid in one of two ways: A PAYE wage or a shareholder salary.  There is no right or wrong way – both options suit different individuals cashflow and planning....

Employee Sick Leave is changing

The Holidays Amendment Bill that increases the amount of paid employee sick leave from 5 to 10 days per year passed its final reading on 19 May 2021. The law change was one of Labour’s 2020 election promises and was introduced the same time as the Covid-19 pandemic. It highlighted a need for people for have adequate sick leave.  It also brings New Zealand more into line with many other OECD countries which offer a higher number of sick days to employees. The new legislation comes into eff...

No Interest Deductions on Residential Properties

For residential rental properties purchased after 27 March 2021 that are not new builds, you will not be able to claim any interest deductions. Interest incurred on a new build that is bought for investment purposes is still able to be claimed as an interest deduction. There is limited detail on what qualifies for a new build, although it appears to include properties that are acquired within a year of the Code Compliance Certificate being issued. From 1 October 2021, residential property invest...

Bright Line Extension

After 27 March 2021, if you sell a residential property within 10 years of purchasing it, any increase in value will be taxable income. There are some exemptions such as the main home, if the property is transferred to you under a relationship property agreement, or if the property was acquired through an inheritance. These exemptions will depend on the specific facts of your situation. There is also an exception to the 10-year extension for new builds which will continue to be subject to the 5-...

Minimum Wage Increase

From 1 April 2021, the adult minimum wage will increase from the current rate of $18.90 per hour to $20.00 per hour.The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour remaining at 80% of the adult minimum wage. There are 3 types of minimum wageThe adult minimum wage – applies to employees aged 16 years or older who are not starting outworkers or trainees.The starting out minimum wage – applies to workers who are:16 and 17 ...