The way employers report payroll information to Inland Revenue (IRD) is changing. From 1 April 2018, IRD introduced a new electronic reporting system, providing employers the option of filing payroll information every payday. From 1 April 2019, the new system will be compulsory for most employers, so it is imperative business owners get to grips […]
If a company does not file its annual return with the Companies Office, it may be struck off from the Companies Register. This is sometimes used as a ‘short-cut’ method, rather than completing the short-form company liquidation process. However, this approach comes with some risks, for example, if a company is struck off the register
Winding up a Company Read More »
If an individual pays “…a monetary gift of $5 or more…” to a charity they are able to claim 1/3rd of it back from Inland Revenue (IRD). Prior to 1 April 2008, individuals could only claim donations of up to $1,890, i.e. a refund of $630. The coalition Government at the time removed this limit
When is a gift not a donation? Read More »
It is common from a layman’s perspective to not appreciate the relevance of treating separate legal entities as separate. Where expenditure is incurred to derive income, it is typically deductible for income tax purposes to the person that derived the income. Documentary evidence should be held that reflects this connection to ensure the expenditure comprises
You versus your Trust Read More »
Inland Revenue (IRD) charges a high rate of interest on late tax payments (currently 8.22%), and in some circumstances the complexity of the provisional tax regime makes interest charges hard to avoid. Add on late payment penalties, and the cost of meeting your tax obligations starts to feel punitive. Tax pooling was introduced in 2003
Broadly speaking, a payment from a company to a shareholder is likely to be a salary / wage or a dividend, and therefore taxable income. However, loans from a shareholder to a company and therefore loan repayments are also commonplace. Whilst interest on such loans is taxable to the recipient, loan repayments should not be.
Payments to Shareholders Read More »
The Tax Working Group (TWG) released its long awaited Final Report (‘the Report’) on 21 February 2019, following a 13 month review during which the Group received over 7,000 public submissions. The report contained 99 recommendations for the Government’s consideration; including the introduction of a broad Capital Gains Tax (‘CGT’). Two months later the coalition
Greetings Happy New Tax Year! We have been super busy with work and recruitment/training of new staff. We have recently opened the New Plymouth branch of Hughson & Associates. It’s on the corner of Devon Street East & Hobson Street. We have two dedicated client carparks out the front. Call in Monday to Friday 8.30am
When starting a new business, it’s important to establish solid bookkeeping and accounting systems. Here’s how you can go about getting everything sorted.
How to set up accounting and bookkeeping for a new small business Read More »
Doing the books should be a slog – it should be an exciting opportunity to add value to your business! Here are a few of our small business accounting tips.
7 accounting tips for your small business or farm Read More »