For some, the increase in the trust tax rate from 33% to 39% has prompted them to ask the question – should we wind up our trust? Rather than looking at the purpose of having a trust with a narrow tax lens, it may be of benefit to consider your circumstances more broadly and ask […]
Snippets: Trusts – The big picture Read More »
Over the last 18 months there have been a number of businesses fall over – which in and of itself has not been surprising given the recent economic climate. However, one element that serves as a warning for us all is the flow on effect of those failures. Not just in a tangible sense, where
Protect your reputation Read More »
As businesses expand, a common decision is whether to create new companies to accommodate new ventures, risks, products and/or acquisitions. A well-designed group structure enables a ‘parent’ company to create distinct entities that operate independently. This approach has several benefits – it provides flexibility as it allows control and visibility over each entity’s direction, policies,
Amalgamation could be the solution Read More »
Season’s Greetings, Please call in if you are passing and try this year’s Christmas cake. Fonterra has produced a record result for our Dairy clients with an expected $10 plus daily payout for the 2024/2025 season. This along with the falling interest rates will provide challenges when it comes to income tax planning. Please book
For the first time since 2010, personal tax rate thresholds will change from 31 July 2024. The change was announced as part of the 2024 budget. When personal tax thresholds are not regularly adjusted to take into account inflation or wage growth, individuals end up paying a higher percentage of their income in taxes over
Changes in marginal tax thresholds Read More »
What was a temporary tax concession relating to donated trading stock has now become a permanent one thanks to the enactment of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 on 1 April 2024. Prior to March 2020, in most cases, if a business donated trading stock it resulted in
Donating trading stock Read More »
The UK’s tax collection department (HMRC) has been sending letters to tens of thousands of taxpayers, demanding they pay large outstanding tax obligations. The letters have come as a surprise to many and have allegedly been linked to 10 suicides. The issue has arisen out of the use of umbrella companies. Workers would have their
Snippets: UK’s HMRC hit workers with big tax bills Read More »
After the introduction of the Trust Disclosure rules in March 2022, in November 2023 Inland Revenue released a high-level summary (in the form of a 40-page report) of insights from the first year of reporting. While tax advisors and clients alike may have begrudgingly completed the disclosures initially, the statistics may prove to be interesting.
Trust Disclosure regime – Insights from the first year Read More »
The Working for Families Tax Credit (WFFTC) is a notoriously complex scheme when it comes to determining eligibility and quantifying entitlement. This leads you to wonder how well the scheme is policed by Inland Revenue, and whether fraud is able to ‘fly under the radar’. Accordingly, it was heartening to see a case brought before
De facto relationship or not? Read More »
For 99.9% of the time, New Zealand companies are incorporated to operate a business and derive income. On establishment, the focus tends to be on items such as: whether a company is the appropriate vehicle, e.g. does limited liability protection warrant it; who should own the shares, e.g. in personal names or in a Trust;
Extracting cash tax-free from a company Read More »