Back to Blog

Preparing Your Small Business for the Christmas Break

The holiday season is just around the corner, and it's time to get your business ready for Christmas and the New Year. Here's a simple guide to help you navigate this festive period smoothly. ...

A Business Trip to China

During my recent business trip to China, I got a front-row seat to the bustling life and culture of this fascinating country. Here’s a peek into my adventure, complete with a sprinkle of humour! My Window into China The first indication of what I was in for, baggage carousel 51 in an airport with 300 gates enroute to the Canton Trade Fair, at probably the largest exhibition centre in the world. Between the airport, trade fair and the Hangzhou train station on a Friday night with its 30 gates...

Family Boost

Now is the time to start claiming your FamilyBoost payments on MyIR. Claims for the quarter 1 July 2024 to 30 September 2024 can be lodged from 1 October 2024.FamilyBoost is a childcare payment to help eligible households pay for the cost of early childhood education (ECE). Eligible parents and caregivers will be able to claim up to 25% of their weekly childcare fees, or a maximum of $975 every 3 months.Childcare fees can include optional charges and services, but they do not include donations. ...

AirBnB GST Implications

Purchasing a beach house or holiday home? Want to Airbnb it to help with costs?This often seems like a good idea at the time. However, providing short-term rental accommodation falls within the GST net. It is a GST taxable activity. Clients and investors should be aware of potential costly GST traps that they can unwittingly fall into....

Shareholder Current Accounts

We often think of the company and us as the same person. However, the company is a separate legal entity (with limited liability). It is usual for the shareholder to advance capital to the company (to purchase assets or fund working capital) or to withdraw cash. Especially if there is cash in the bank account and the shareholder wants to use that cash for personal purposes.The shareholder's current account records these loans between the company and the shareholders, which is essential for tax p...

Government Tax Changes: Implications for New Zealanders

With the new year underway, the government is taking action to address inflation and the cost of living. Here's a rundown of key tax changes you need to know about....

AirBnB Properties: deductibility of expenses

Businesses providing short-term rental accommodation, such as AirBnBs, can offset a variety of expenses against their income. Likely expenses are advertising, cleaning, breakfast supplies, linen replacement, rates, insurance, power, and loan interest.However, there are limitations on some deductions, depending on whether the property is part of the owner’s main home, a property used both for rent and private use such as a holiday home, or if it is used solely for short-term stays.In summary, t...

Minimum Wage Increase from 1 April 2024

Adult minimum wage (over 16 years old) will increase by $.45 to $23.15 per hour and the starting-out and training minimum wage will increase by $0.36 to $18.52 per hourWhat does this mean for your business?   Get ready now!Identify employees who may be affected by the minimum wage increase. This could include salaried staff earning ~$48k pa with unspecified hours. If an increase is required this must be in place and ready for pay periods from 1st April 2023.Below is a ge...

Let's Talk Management Fees

Management fees are usually paid to a person or company for managing the business, property, or investment funds on another's behalf.Management fees can be a useful tool to simplify the accounting process and possibly save and defer taxes. However, there are certain criteria that need to be met to ensure you have a credible argument if the IRD chooses to challenge you on this expense.There needs to be evidence that the management fees directly relate to the business generating income or the carr...

Repairs & maintenance on buildings – deductible or capital?

A common question we receive from clients who have rental properties (commercial or residential) is what is deductible as repairs and maintenance, and what are capital improvements?This is an area of constant discussion between clients and us and recent reviews by IRD into various clients' tax returns have thrown the spotlight back on these costs....

Are donations tax deductible?

New Zealanders are a generous lot, and many of us like to give back to our communities, charities and not-for-profit organisations by way of donation. Donations come in several forms including donations of cash, donations of trading stock and donations of our time/services. This article will look at each type of donation and discuss what donations are tax deductible and the rules around this....

Claiming deductions for the business use of motor vehicles

We were recently asked a question about motor vehicle deductibility by one of our clients. The same questions will likely apply to most business owners wanting to maximize motor vehicle deductions, so we’ve shared our answer below.Richard is a shareholder of Bird Nests Limited and has purchased a company vehicle that he will use for business only. Richard advises that he has no private usage of the vehicle.Can Bird Nests Limited claim 100% of the GST on the cost of the vehicle and claim all th...

Deductibility Of Entertainment Expenses

The days are getting longer, and Christmas work functions are about to get into full swing. This article looks at an often-confusing area of business expenses: deductibility of expenses regarding food and drink and entertaining clients and staff. Before diving into some specific examples, all deductible expenses must be incurred in earning income or have a nexus to carrying on your business. If the expense is of a personal nature (even if paid out of the business bank account), it is non-de...

Election Tax Policies - Depreciation on Commercial Buildings

Both National and Labour campaigned on removing the option to claim depreciation on non-residential buildings. This change will enable the government to raise $525 million a year to use towards other tax policies, such as administering income tax cuts and increasing working for families. It is important for owners of non-residential buildings to understand this change because: Owners will no longer be able to deduct depreciation on commercial buildings; they will pay more tax. &nb...

Making Smart Decisions When Repaying Debt

After selling a property, the vendor is hopefully left with some cash after repaying debt. The vendor then has options to consider about what to do with this cash: spend it, invest it, or repay other debt. This decision will come down to each client’s individual goals and financial situation. It is important to consider the tax implications when considering what to do with the leftover cash from a property sale. The tax implications will also depend on which entity owned the property bein...

Are you buying a business, or buying shares in a business?

There is a fundamental difference between buying a business and buying shares in a business (company). The differences are significant, and they can cause confusion. For example, what happens to the cash in the bank account on the day the business is sold? This depends on if the business is being sold or if the shares in the business (a company) are being sold. This article will explore the key differences between buying a business and buying shares in a business to help potential investors...

Evans Doyle in the Cambridge News

Tim and Jane were recently profiled in the Cambridge News for a people in the business section. They were asked various questions about their business success, what a usual day looks like, advice to business owners, and more. Read the article below (you may need to zoom in due to the text size)....

Cashflow Forecasting

Cashflow forecasting is critical to the survival and growth of any business, without establishing targets for the year you may be flying blind.We find that our most successful clients are those who have set targets each year and monitor their results on a regular basis.  Our team are here to help you to set, monitor and manage financial targets and improve business performance.A cashflow forecast will set monthly financial targets and provide you with a monthly breakdown of all your income ...

Are your casual employees really casual?

Casual employment agreements are often used to support businesses during busy periods. However, there are implications if there are changes resulting in regular work pattern. A true casual employee has: ·         ‘as needed’ shifts with no guaranteed hours and can decline to work·         has no regular work pattern·         no ongoing expectation of employment...

Dividends - An Overview

A dividend is a distribution of profits a company makes to its shareholders. Sometimes, they can be confusing, especially the extra 5% dividend withholding tax (DWT) and the difference between cash and non-cash dividends. This article explains dividends in more detail.What we have noticed is that our most successful clients understand accounting and tax well. They know the rules of the game and then can tweak and adjust their game plan to win. Our aim is to extend this knowledge to our clients s...

2023 Budget: Trust tax rate will increase to 39%

In May, the government released their budget which announced a tax change to the trust tax rate. From 1 April 2024, the trust tax rate will increase from 33% to 39%. It is possible that the increase in the trust tax rate may not go through considering the election later this year (and the limited time to pass legislation beforehand) - watch this space.When the government increased the top individual marginal tax rate to 39% for income above $180k in 2021, the government was advised by ...

Minimum Wage Increase from 1 April 2023

There are four significant changes occurring to payroll from 1 April 2023.1.  Adult minimum wage (over 16 years old) will increase by $1.50 to $22.70 per hour and the starting-out and training minimum wage will increase by $1.20 to $18.16 per hour2. The annual ACC earner levy rate is increasing from 1.46 percent to 1.53 percent 3. The annual ACC earner levy threshold is increasing from $136,544 to $139,3844.  The student loan threshold is increasing to $439 per week...

End of Financial Year Checklist

As we approach the end of the financial year, it's important to start thinking about preparing your financial statements. To ensure that everything is accurate and up-to-date, we recommend that you take the following steps:Remember to complete a stock take. This will help you to determine the value of your inventory at the end of the financial year and will also help you to identify any discrepancies.Ensure that you have an accurate work-in-progress (WIP) report. This will help you to determine ...

Trusts: Deemed Settlor Risks

Trustees of a family trust often consider distributing income to beneficiaries (sometimes those on a lower marginal tax rate). They may not necessarily make a cash payment. This arrangement creates a beneficiary loan between the trust and the beneficiary; the trust owes the money to the beneficiary because they have been paid the income (by way of income distribution for tax purposes) but not withdrawn the cash.There are new tax issues that can arise from beneficiary loan accounts because of the...

Paying Employees When Disaster Strikes

With the recent cyclone and flooding affecting regions throughout the North Island, here are some important points to remember regarding your employees and payroll.  First and foremost, ensure the safety of your employees and yourself. During and after emergencies, honest and open communication is vital to maintaining relationships. Remember your employees may be under additional stress....