Updated GST invoicing & record keeping requirements

The rules covering tax invoices are being updated for the first time since the introduction of GST in 1986 with the aim being to make GST record keeping easier. GST invoice rules are being updated to reflect some of the changes that have occurred in the way business is done and to make the format of a tax invoice, now called taxable supply information, less prescriptive. These changes are set to…  Read more

Xero tip: simplify batch payments using contact groups

Still paying bills as they get sent to you without any formal process? We recommend introducing a batch payment system where bills from suppliers are entered into Xero through Hubdoc and then a batch payment file is uploaded to your online banking system once or twice a month (usually on the 7th and the 20th.) One issue with using this system is that you need to separate out bills that…  Read more

Can you be liable for income tax on the sale of your family home?

The Bright Line Test is not a new rule , it was introduced by the John Key led National party and took effect from 1 October 2015. The purpose of the test is to ensure that tax is paid on profits where properties are bought and sold within a short amount of time. Some of these transactions would have been taxable anyway under the various rules that already existed to…  Read more

Am I a tax resident in New Zealand?

Sometimes it is hard to answer a seemingly simple question. It is important to know the answer though as most New Zealand tax residents need to pay tax in NZ on income they have from any country in the world (their “worldwide income”) but non residents only need to pay tax on income that has a New Zealand source (source itself can be hard to determine in some situations but…  Read more

End of financial year taxes: the financial benefits of getting it done

It’s understandable that for some people filing their end of financial year tax returns is right down the bottom of the to-do list. It’s one of those jobs that feels hard and often results in tax to pay so people put if off, sometimes for years. In reality though, putting off filing your returns makes everything harder and often results in even more to pay. Keep on top of provisional…  Read more

Raising your prices without losing business

As prices continue to rise, you’ve likely noticed that your cost of doing business has increased as well. With that in mind, you may be considering raising your prices. Increasing prices can be delicate, and sometimes a little awkward, so read on to discover some tips on how to raise your prices, and how to tell your customers with a little grace. Accept that you have to do it First…  Read more

Using a trust to own shares in a company – Updated August 2023

With the increase in 2021 of the personal tax rate to 39% for anything earned over $180,000, and with rampant inflation now pushing more people’s business incomes over that figure, some people may be looking for ways to change their structure to take advantage of lower tax rates. One of the methods that some people have used in the past is for an individual who owns the shares in a…  Read more

5 steps to streamlining your payroll

  Payroll is one of those things that starts out simply enough. You start your business, hire a few employees, and things tick along pretty well. It’s straightforward enough to keep everything in line at first, but what happens to most companies is… they grow! This is a great thing, but it also means that payroll becomes more complicated. As such an important aspect of your business, it’s important that…  Read more

Tax implications of Airbnb (short-term accommodation) rental income 

UPDATE June 2023: See below for interest limitation rules Are you one of the many thousands of New Zealanders who are generating income through short term rental accommodation platforms like Airbnb, bookabach and holidayhouses.co.nz? Whether you are renting a guest room in your home as a side-hustle, or you rent out your family bach when it’s not in use, or you have a fully-fledged holiday home rental business, you should…  Read more

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