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 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

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

Tax expenses: don’t claim too much!

Knowing what and how much to claim in expenses on your Income Tax Return or financial records is probably more important than you imagine.  Read on to find out more. Legitimate expenses lower your taxable income If you own a small or medium business, there are a number of expenses you can claim through the business to lower your taxable income.  And it’s tempting to claim as much as you…  Read more

Lockdown & beyond: claiming tax expenses when working from home

  COVID-19 forced more than 40% of the workforce in New Zealand, in every industry, to work from home during lockdown.  And according to Infometrics senior economist Brad Olsen, remote working is likely to be a key change for post-pandemic New Zealand with 36% of the workforce continuing to work from home in level 1.  Having experienced working from home during lockdown, many workers are now taking a split approach…  Read more

Post election: what’s in store for your business?

Labour has just had the biggest win in over 50 years and with 64 seats it will be relatively easy for them to make the changes they proposed in their pre-election campaigns.  The expectation is that they will go further and faster this term.  Whether or not you agree, it’s time to prepare.  So, what does a Labour government mean for your business? Personal income tax Labour has announced plans…  Read more

Tax compliance: how to have a happy relationship with IRD

There’s no two ways about it; if you run a business, then you might as well embrace your relationship with Inland Revenue as it’s not going anywhere! Whether you’re in the retail sector, or professional services, what will help this relationship from spiraling is the same: IRD like to see clear-cut systems around record keeping that remove room for error and miscalculation. Easy, right…? What are ‘business systems’? When we…  Read more

Fast facts on the temporary loss carry-back scheme

If you’re a New Zealand business that has been affected by the economic volatility which COVID-19 has brought, you may have already heard about the COVID19 temporary loss carry back scheme which the New Zealand government rolled out in the week beginning 27 April. This bill has been developed to take the financial strain off businesses who may have large amounts of tax to pay, but expect to, or are…  Read more

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