Starting Strong: Getting Tax Right In Your First Year Of Business

Finding your feet in the first year of business can seem like an ever-evolving task list, but tax is one thing to get ticked off quickly. Instead of waiting for your tax situation to snowball with a surprising result come end of financial year, take the time to jump on that tax learning curve. You might be pleasantly surprised to find it’s a relatively simple task once you’re in the…  Read more

What’s new for non profits: tax changes 

It’s now been almost ten years since the maximum limit on tax credit for donations was removed, and in this time donor concessions in New Zealand have increased from 100 million per year to over 280 million per year! Inland Revenue has recently made some important changes to the Taxation Act for non profit organisations to ensure the tax rules address this increase, coming into effect this year.  We recommend…  Read more

Going solo: starting out as a sole trader

Flexibility and self-management…the appeal is real. In fact, approximately 70% of enterprises within New Zealand are sole traders. It’s easy to understand why – no more worrying about applying for holiday leave, pushing for a much deserved pay rise, or being subject to painful small talk around the coffee machine. Instead, the main person you’re checking in with is…yourself! For some, becoming a sole trader is a win-win situation.   Is…  Read more

New to New Zealand? Here’re your facts on tax residency

There is nothing quite like moving overseas to send your ‘life admin’ skyrocketing. Many of our clients have relocated here to New Zealand from all over the world – UK, Australia, India, China, Canada and even Hungary – and are making the most of the NZ small business lifestyle by setting up as a contractor, or starting their own business venture. And when you throw a business in the mix,…  Read more

The do’s and don’ts of claiming home office expenses

Sssshhh, can you hear that? That’s the sounds of the home office a.k.a mega productivity, peace and quiet, comfort and silence! Home (office) is where the heart is Studies show remote or home-based workers are more productive, better for the environment (no travel emissions), are happier and healthier (have less sick days and less time off) and churn out quality work because it is nice and quiet and un-interrupted. Best…  Read more

Property investors: ringfencing of rental losses now in place

In an effort to level the playing field between property speculators/investors and home buyers, speculators and investors are no longer able to offset tax losses from their residential properties against their other income (eg salary or wages, or business income) to reduce their income tax liability. This legislation is known as ring-fencing of rental losses. The new rules limit a person’s deductions for expenditure incurred in relation to residential land…  Read more

Managing your small business finances 101

If you run your own enterprise, there’s a good chance that going into business had a lot to do with money. But once you’re actually in business, finances can pretty quickly become overwhelming. So grab a notebook, and set aside a couple of minutes, because we’re starting with basics and breaking down everything you need to know. Here’s our Small Business Finance Management 101! Step one: know why finances matter!…  Read more

Latest stage of Inland Revenue’s tax system upgrade

In what was one of the largest data migrations undertaken by any government agency in New Zealand, around 20 million income tax records, representing around $5 billion in financial transactions, were moved from Inland Revenue’s legacy software to a new system during a seven day shutdown over Easter 2019. Inland Revenue began rolling out its business transformation programme in stages two years ago. The latest upgrade during Easter 2019, was…  Read more

GST on Google Payments

One small but important change that we have noticed recently is that Google has started charging GST for it’s G Suite (email, apps and storage products) and for advertising. You’ll need to revisit any rules that you have set up in Xero to make sure that you are claiming the GST on these payments. From the paperwork that we have seen it looks like this change took effect from 1…  Read more

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