APEX ACCOUNTANCY LTD, CHRISTCHURCH
  • Home
  • Services
  • Pricing
    • XERO PACKAGES
    • OTHER SERVICES
  • Software
  • Tax Refunds
  • About Us
  • Blog
  • Contact

April changes to IRD which businesses need to know about

4/26/2018

0 Comments

 
Picture
The legislation introduced last year was designed to simplify and integrate tax processes with day-to-day business. The result is a new option for managing provisional tax through accounting software, the ‘Accounting Income Method’ (AIM), which will be available to start on April 17, 2018.

What is AIM ( Accounting Income Method)?

Accounting Income Method is a new provisional tax option for small businesses with annual turnover under $5 million.

How does it work?

MYOB, Reckon or Xero calculates the payment by using the information in your accounting software.  The system will calculate provisional tax if your business is making profit. The calculation will include basic tax adjustments for depreciation, Shareholder Salary, Private Use expenditure, Debtors and Creditors, Provisions, Trading Stock and Prior Year Losses.

Two key benefits of Accounting Income Method
  1. No exposure to Use of Money interest if you pay what your software tell you to.
  2. No Penalties , if you take reasonable care with your record keeping.

What are the other benefits of Accounting Income Method?
  1. Refunds are available throughout the year and can be transferred to other tax account ( e.g GST or PAYE)
  2. Refunds will be automatic and quick so ensure to enter your correct bank account information.

Use AIM if your business turnover is 5 million, growing and the sales are unpredictable or fluctuating.

Partnerships, Maori Authorities, Superannuation funds, Trusts and Portfolio Investment entities.

Keep up to date with tax changes. Follow us on Facebook to learn more. 

​
​
0 Comments

    Author

    Cristina Canard is the principal accountant at Apex Accountancy Ltd. Cristina keeps up  to date with all the relevant tax changes in New Zealand. 

    Archives

    July 2018
    May 2018
    April 2018

    Categories

    All
    Small Business
    Tax Changes

    RSS Feed

Picture
Picture

REGISTERED TAX AGENT & TAXATION ACCOUNTANT ​

Phone Apex Accountancy Ltd on 03-331-6165 ​​or email Cristina Canard.
Website by Catchlight Design
  • Home
  • Services
  • Pricing
    • XERO PACKAGES
    • OTHER SERVICES
  • Software
  • Tax Refunds
  • About Us
  • Blog
  • Contact