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July Tax News

12/7/2023

 
We have put together another informative newsletter for you which includes information about many New Zealand tax and business matters including: 
  • New build exemptions
  • Tax penalties and interest payments
  • Leaving New Zealand - what you need to know
  • Who needs to file an income tax return in New Zealand?
  • And much more!
Download the full newsletter here: 
Read Newsletter

All About Schedular Payments

4/7/2023

 
Schedular payments are payments made to contractors who perform certain activities. Tax is deducted from these payments but they're different to salary or wage payments.

​Watch this handy instructional video about schedular payments. 

May Tax News

18/5/2023

 

Current Newsletter

We have put together another informative newsletter for you which includes information about many New Zealand tax and business matters including: 
  • Xero Hubdoc to simplify paperwork hassles for your business
  • Special reports on new legistration announced by the IRD
  • Land Transport (Clean Vehicles) Amendment Bill 
  • A guide to understanding your role and responsibilities a Company Director in New Zealand
  • And much more!
Download the full newsletter here: ​
May 23 Newsletter

CLIENT PORTAL COMING SOON!

Exciting announcement! We're thrilled to unveil that we are working on an exclusive client log-in portal designed specifically for our valued customers. By registering, you'll gain free access to an exceptional array of financial insights, tax strategies, industry best practices, and a wealth of other invaluable resources, including:
  • Tax Guides and Updates
  • Business Start-Up Guides
  • GST Information
  • Payroll and Employer Guides
  • Inland Revenue Resources
  • Budgeting and Financial Planning Tools
  • Industry-Specific Articles
  • Record-Keeping Guidelines
  • Tax Planning Strategies
  • Xero Guides

When this is live we will let you know how to access it.

March Tax News

15/3/2023

 

END OF TAX YEAR TIME

We're reaching the end of the tax year so it's time to get ready with your filing. 

To help you out we have attached our updated client questionnaire for both
current and prospective clients. You won't have to worry about the preparation of your 2023 annual tax return when you download, fill out, and email the necessary documents to our team.
Client Questionnaire GST Business
Client Questionnaire Sole Trader
Client Questionnaire Individual
Client Questionnaire Rental

OTHER TAX NEWS

In our quarterly newsletter we have put together a collection of articles about many tax and business matters including: 
  • Understanding ACC levies if you work or own a business
  • New Rental Law Information for Landlords and Tenants
  • ​Payments made by parents to private schools and donations tax credit
  • End-of-year Tax Tips
  • Sustainability initiatives in New Zealand
  • And much more!

Download the full newsletter below. 
March 2023 Newsletter

TAX POOLING PARTNERSHIP

Exciting News! We have partnered with PWC Tax Pooling Solutions to assist our clients with their cash flows. Refer to the tax pooling information at the end of the newsletter above for more details.

December Tax News

12/12/2022

 
In our December Newsletter we teach you about all the tax news and updates you need to know as a business owner in New Zealand. These include: 

Provisional taxes

Learn more about provisional taxes and payment due dates for 2023. What are the available payment arrangements, and how can you set set them up?

Goals for 2023

Identify the tips and tricks on how to handle cash flows. This about getting business coaching to discuss business profitability.

Xero Training

Let us know what you want to learn. We offer Xero training to help you and your business.

Christmas Expenses

It's the holiday season, and it's time for the annual Christmas work party, gift giving, cash bonuses, and more. But do you know which entertainment expenses you can deduct for your business, and which may be subject to Fringe Benefit Tax (FBT)?
Our December newsletter has details about all these topics and much more too!
Download Now

August Tax News - 2022

23/8/2022

 

Tax relief for businesses hit by severe July weather

The Government has made an Order in Council declaring the series of adverse weather fronts that crossed New Zealand between 11 July and 31 July 2022 to be an emergency event and allows Inland Revenue to waive interest charges on late payments of tax for business affected by that emergency event. The Tax Administration (July Adverse Weather Event) Order 2022 allows Inland Revenue to waive use of money interest for late payment of taxes.
​

The emergency event applies to people whose businesses in the districts of Canterbury, Gisborne, Northland, Otago, and Wairoa have been affected by floods, damaging high winds, and disruption to infrastructure.

The Order is now in effect and will expire on 30 September 2022.

Businesses affected by the floods are urged to contact their tax agent if they would like to take advantage of the interest remission measure. Taxpayers will be able to apply to have late payment interest waived once they have filed their returns and paid due taxes.

Different rules apply in cases of financial hardship.
Learn More

​Provisional Tax DUE SOON

Provisional tax is due on August 28, 2022.
​
Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year. You'll have to pay provisional tax if you had to pay more than $5,000 tax at the end of the year from your last return.

It's payable the following year after your tax return. For example, if your residual income tax from your 2022 return is more than $5,000, then you'll need to pay provisional tax during the 2023 tax year.

Provisional taxpayers often earn:
  • self-employed income- extra income like Uber income and side hustle income
  • rental income
  • income earned as a contractor
  • income from a partnership
  • overseas income.

There are some situations where you may need to pay provisional tax on your reportable income.

Reportable income is income information that Inland Revenue receives regularly from a third party (e.g. an employer, a bank, etc) for an individual and a tax year.

This includes:
  • PAYE income payments
  • income payments
  • ACC attendant care payments
  • Prescribed Investment Entity (PIE) income
  • Employee share scheme income with tax withheld
  • NZ resident interest/dividends
  • Non-Resident interest/dividends/royalties
  • Taxable Maori Authority distributions

These can be due to:
  • incorrect use of tax code or rate for PAYE, interest, or dividends
  • lump sum payments that did not have tax deducted, or not enough tax deducted
  • employee share scheme income that did not have tax deducted
  • property sales subject to the bright-line property rule.

Please budget for your August 28, 2022 Provisional tax.
Fact Sheet

Calculating YOUR Charge out rate

In order to calculate an accurate charge out rate there are many factors you need to take into account. From your target income to the amount of hours you can manage ANZ has all the tips and tricks. 
Learn More

INFLATION RATE - NOW 7.3%

The consumers price index (CPI) is a measure of inflation for New Zealand households. It records changes in the price of goods and services. It influences interest rates and is used to calculate changes to benefit payments.
Learn More

Calculating Your Breakeven Point

9/8/2022

 
Calculating the breakeven point is a key financial analysis tool used by business owners.

Once you know the fixed and variable costs for the product your business produces or a good approximation of them, you can use that information to calculate your company's breakeven point. Small business owners can use the calculation to determine how many product units they need to sell at a given price point to break even.

The Breakeven Point

A company's breakeven point is the point at which its sales exactly cover its expenses. To compute a company's breakeven point in sales volume, you need to know the values of three variables:
  • Fixed costs: Costs that are independent of sales volume, such as rent, salary of your employees
  • Variable costs: Costs that are dependent on sales volume, such as the cost of manufacturing the product
  • Selling price of the product

How to Calculate Breakeven Point

In order to calculate your company's breakeven point, use the following formula:

Fixed Costs ÷ (Price - Variable Costs) = Breakeven Point in Units

In other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note that in this formula, fixed costs are stated as a total of all overhead for the firm, whereas Price and Variable Costs are stated as per unit costs—​​the price for each product unit sold.

The denominator of the equation, price minus variable costs, is called the contribution margin. After unit variable costs are deducted from the price, whatever is left—​​​the contribution margin—​is available to pay the company's fixed costs.

All About Credit Information - July 2022

20/7/2022

 
Your credit record is an important part of your financial fingerprint in New Zealand and can affect how companies treat you, for example when you want to borrow money or get insurance.

​This month we talk about checking and correcting your own credit report. 

HOW DO YOU CHECK YOUR CREDIT RECORD?

You can check your credit information for free, but if you want the information in a hurry you have to pay for a report.
​
The New Zealand government links to the main credit reporting companies in NZ. 
LEARN MORE

HOW DO YOU CORRECT YOUR CREDIT REPORT?

Credit reporters must take reasonable steps to ensure the information they hold is accurate, and promptly correct any errors they become aware of.

If you tell a credit reporter that your report contains an inaccuracy, the credit reporter must, if appropriate, take steps to correct it. They will usually check the information you provide with the source − for example, the credit provider who submitted a default.

​Learn more about how to do this on the New Zealand Privacy Commissioner website. 
Learn More

Latest IRD News - June 2022

27/6/2022

 

​COVID-19 Payment review 

The Inland Revenue have nearly completed the applications for the COVID-19 Support Payment and are now reviewing the accounts of a sample of their customers who received one or more of the following:
  • Resurgence Support Payment (RSP)
  • COVID-19 Support Payment (CSP)
  • Small Business Cashflow Scheme loan (SBCS).

The review is to make sure customers met the relevant eligibility criteria and have used the payments in line with the terms and conditions. If the IRD find you were ineligible or have not used the payments in line with the terms and conditions, they may act to recover these.

To check the eligibility criteria visit the website by clicking the link. 
CHECK NOW
The message here is to ensure to send your expenses reconciliation to your accountant.

​Hidden Economy real estate campaign

Inland Revenue started the campaign because a number of real estate agents appeared to be:
  • claiming private expenses against their business income and/or claiming expenses without supporting business records
  • using net versus gross values when reporting GST
  • not including wage subsidy payments received within their annual income tax return.
Learn More
The message here is do not claim personal expenses and common errors that real estate agents make. 

If you have questions about any of these issues please do not hesitate to get in touch with us here at Apex Accountancy.

​Revenue is vanity, Profit is sanity, Cash flow is reality

11/4/2022

 
Managing Your Cash Flow

They often say cash flow is king and well there quite right. It’s nice to have profit but cash flow is what will make or break your business. With the Pandemic causing chaos in the business world managing your cash flow is now more important than ever.

First off, cashflow often gets confused for profit, yet it’s a little bit different.

Profit – cash left over once your expenses from your sales revenue has been taken out.
Cashflow – Cash that flows in and out of your business and not into your pocket. Cash flow is used to cover your expenses, both current and future. It’s what grows your business.
           
What’s the secret to managing your cashflow?

Books – Make sure your records are up to date. Record all your cash flow information regularly. This is a big must as you need to know if you have more expenses than income or if you have enough cashflow happening to buy supplies. Setting up your bookkeeping and taking care of it regularly means you can check your not only your cash flow but your complete financial state at any time.

Cash flow forecast – Sounds intimidating I know. Simply put this an estimation of the amount of money you expect to flow in and out of your business. By forecasting your cash flow you have the chance to identify any potential or current issues before they turn into major ones.

What a forecast can tell you:
  • Projected starting account balance
  • Predicted income
  • Estimated outgoings, e.g., bills, salaries, raw materials
  • Projected ending account balance
  • Any money left over

Don’t Forget the Tax Man – Tax sneaks up on you if you are not prepared. Make sure you work this into your forecast.
  • Opening bank balance
  • Cash receipts
  • Cash payments
  • Closing bank balance
  • Surpluses and shortfalls in receipts over payments

Customers - Useful to have for every business. Invoices, a necessary customer payment prompt. Having a strategy will help make creating and sending invoices easier. Set up a system that works for you. How? Here are a few pointers:
  • Use templates already created for invoices
  • Use an online billing software. Have a look at Xero for more info on this
  • Link invoices to quotes
  • Track all your materials and time on jobs better
  • Have a process in place for late payment. Don’t be afraid to chase these up.

Keep it separate – Don’t mix your personal and business finances together. Tempting I know. This will make it much harder to work out what your cash flow is. Also gives you a false cash flow forecast. Set up your pay properly so you can pay yourself, any excess cash can then be identified easier and used to grow your business.

Set up a cash reserve   - Is there a certain time of year where you struggle to pay bills? Save for that rainy day.  Start building up a cash reserve now, so you're prepared. Yes, it may mean cutting back a bit for now on what you may pay yourself, but it will be worth it to have that cash reserve.

Bonus too, if any unexpected events arise, for example COVID, you will have a little bit of cash to help you out. Plus watching the cash reserve grow will help build your confidence and strengthen finances.

Need an extra hand?
Business stuff can be complex, so if in doubt ask us for help that’s why we’re here.
Contact Us
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REGISTERED TAX AGENT & TAXATION ACCOUNTANT ​

CHRISTCHURCH OFFICE:
Phone 
027-276 2588 / 022 301 5867 ​​or email us
QUEENSTOWN OFFICE:
Phone 
022-076 7577 ​​or email us
  • Home
  • Services
    • ACCOUNTING SERVICES
    • RENTAL PROPERTY
    • AIRBNB TAX
  • Pricing
    • ACCOUNTING
    • OTHER SERVICES
  • About Us
  • Blog
    • SUCCESS STORIES
  • Contact
    • CHRISTCHURCH OFFICE
    • QUEENSTOWN OFFICE