Guide to business repairs & maintenance

Repairs and maintenance can be a major cash outlay for an owner of a business or a rental property and hence the ability to claim an instant tax deduction can have a significant impact on the year end tax bill. What are the rules? Broadly speaking, expenditure on repairs and maintenance is an allowable tax deduction in the period it’s incurred. Capital expenditure is not deductible, but it is subject…  Read more

New residential rental property interest limitation rules: what this means for owners

Aiming to curb soaring house prices, the government has introduced new rules phasing out the ability to deduct loan interest from rental income. For anyone who owns residential rental property, we suggest taking a look at how this change will affect you. Applicable properties The interest limitation rules apply to residential property in New Zealand. Any property with a dwelling on it (such as a house or apartment) is subject…  Read more

Guide to Agreed Upon Procedures

What are “Agreed Upon Procedures” and can they be useful for your business, community organisation or body corporate? What are Agreed Upon Procedures? Agreed Upon Procedures (AUPs) are a type of an engagement where a practitioner is hired to test and report on a specific question of fact. Unlike an audit or a review, the practitioner reports only factual findings and does not offer opinions, conclusions or assurances. You are…  Read more

Guide to Fringe Benefit Tax (FBT)

Fringe benefit tax (FBT) is tax payable on non-cash benefits provided to employees including shareholder employees.  It is separate to income tax and charged according to the taxable value of the fringe benefits provided. Employers can make a deduction on the cost of providing the benefits as well as on the FBT tax that they pay. These benefits include: motor vehicles available for private use low-interest loans free or subsidised…  Read more

Companies Office annual return requirements: more than you may think

You’d be forgiven for believing you had met your Companies Office requirements when you file your annual return every year. The fact is, that updating the names and address of any shareholder or directors for your company does not fulfil all of your obligations under the law. Records required Amongst other things, a director of a company is required to keep certain records such as the constitution, meeting minutes and…  Read more

New trust reporting and disclosure requirements

In 2021, the Taxation (Income Tax Rate and Other Amendments) Act was passed by parliament. One of the changes made in the Act was a new top tax rate for individuals of 39%. Because the trust tax rate is 33%, people will be keen to look at ways they can use their trust to stream income and pay less tax. To combat this, the Act also introduces a significant increase…  Read more

End of financial year check up for your business

With financial year end coming up soon, now is a good time to tidy up the books and review. But it shouldn’t just be about the numbers, it’s also a good time for a mental health check-in for staff and yourself. To help you out, Xero has put together some handy resources, like webinars, a tax calendar, tools for wellbeing and more. Keep reading to make sure your business is…  Read more

Increased Resurgence Payment and latest Covid business support

There’s a lot going on in the business world as we start the transition from the Covid Alert Level system to the new ‘traffic light’ Protection Framework. Wage subsidies and other support programmes continue to feature with changes coming to the Resurgence Support Payment. More about business boost to transition to new Covid framework (beehive.govt.nz) Read on for the latest updates and some ideas to help move your business forward.…  Read more

Further rounds of funding for businesses affected by lockdown

Auckland, and now parts of Waikato and Northland, remain in lockdown Level 3, and so further rounds of funding were made available to businesses across the country. This includes a fourth Wage Subsidy and a third Resurgence Support Payment (RSP). Wage Subsidy #4 The Wage Subsidy is a payment to support eligible businesses, organisations and the self-employed affected by Alert Levels 3 and 4, so they can continue to pay…  Read more

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