TOTALACCOUNTING Chartered Accountants

Accounting                               Taxation                                   Business Advice and Development Assistance                                        

 P.O. Box 10 , Clive         133 Main Rd, Clive           Tel. (06) 8700952          Fax. (06) 8700955 

Email murray@totalaccounting.co.nz                                  Website www.totalaccounting.co.nz

 
EMAIL NEWSLETTER AUGUST 2015
 

Welcome again to the TotalAccounting Newsletter in which we discuss current taxation and business matters. We trust you find it informative.  

 

NEW CLIENTS

We are happy to accept new clients.  We would be happy to assist colleagues and acquaintances as new clients.

 

INDEX

  1. Provisional Tax and Student Loan Payments Due 28/8/2015

  2. The Two Year Rule is Applicable Soon 

  3. Paid Parental Leave

 

PROVISIONAL TAX AND STUDENT LOAN PAYMENTS DUE 28/8/2015

The first instalment of Provisional Tax and Sudent Loan interim payments are due on 28/8/2015 for taxpayers who have a standard March balance date.

This due date applies to Provisional Taxpayers who use the Standard or Estimation option to calculate their Provisional Tax payments.

TotalAccounting have recently sent out letters to clients who paid Provisional Tax in the year ending 31/3/2015, and are therefore likely to be due to pay Provisional Tax in the year ending 31/3/2016, and who have not as yet provided their year ending 31/3/2015 financial documentation for preparation of Financial Statements and assessessment of Income Tax liability. Please contact us if you are in this category and you have not received these, or if you have any enquiries on the matter.

 

THE TWO YEAR RULE IS APPLICABLE SOON

IRD has now released full details relating to the 2015 Budget proposal to tax gains from the sale of land sold within two years of acquisition and properties purchased after 1 October 2015.

The rule will apply to residential properties (including holiday homes, children's flats, rentals) sold within two years between the date the purchase is registered on the title and a contract of sale is entered into.  The rule will not apply to:

  • Commercial land (including farmland)

  • The main home of the taxpayer being the house that the taxpayer lives in as their residence (including trust owned family homes)

  • Inherited residential properties

  • Residential properties transferred under a relationship property agreement unless the property is subsequently sold within the two year period by the recipient.

If a property subject to the rules is sold at a loss, the loss will be able to offset against taxable gains from land provided that the loss did not arise from a sale to an associated person.

No deduction will be available for costs associated with the property (insurance, rates, insurance etc.)  unless they are deductible under the normal deduction rules.

 


PAID PARENTAL LEAVE

What Paid Parental Leave is

Paid Parental Leave (PPL) is a government-funded entitlement paid to eligible working mothers and adoptive parents when they take parental leave from their job(s) to care for their newborn or adopted child under the age of six. These payments go towards the loss of income that working mothers and adoptive parents experience when they take this parental leave.

How much the PPL payments are

If you're:

  • an employee, PPL payments equal your normal pay up to a current maximum of $516.85 a week before tax
  • self-employed, PPL payments equal your average weekly earnings up to a current maximum of $516.85 a week before tax. If you make a loss or earn less than the minimum wage, for at least 10 hours work a week, the payment is $147.50 each week before tax. This is equivalent to 10 hours each week at the current minimum wage rate.

How long you can receive PPL payments for

If you have a new baby ... or adopt a child under the age of 6 ... then you can receive PPL payments for a maximum of ...
expected or born on or after 1 April 2015 on or after 1 April 2015 16 weeks.
expected or born on or after 1 April 2016 on or after 1 April 2016 18 weeks.

You can transfer your PPL to your spouse or partner, as long as they also qualify for PPL from their employer or self-employment.

How PPL is paid

IRD will pay PPL payments directly into your bank account each fortnight. The payments will be treated as income, just like your normal salary and wages or self-employed income. PPL payments have tax and student loan deductions taken out (at the rate applies to you). It will not have ACC Earners' Levy deducted from it.

Once IRD have received and processed your application IRD willl send your payment advice letter with:

  • your weekly entitlement amount - note that while this entitlement is weekly, it is paid fortnightly
  • the amount of your regular fortnightly payment
  • the dates when all your payments will be received - note first and last payments may differ from regular fortnightly amounts depending on your PPL start date).

Parental tax credit and paid parental leave

You may be entitled to receive more money by applying for parental tax credit rather than PPL if:

  • you earn less than $19,350 a year before tax from the job that you're taking leave from, or
  • you're expecting three or more children, eg, from multiple births or adoptions, or
  • you're taking less than the maximum number of weeks paid for paid parental leave.

Find out more about parental tax credit

Find out if you're eligible for PPL and how to apply

Find out if you're eligible for PPL and how to apply on the Ministry of Business, Innovation and Employment's website (formerly the Department of Labour) or call them on 0800 20 90 20.

 

TOTALACCOUNTING KNOWLEDGE CENTRE AND ARTICLES ABOUT TAXATION AND BUSINESS IN GENERAL PRESS HERE FOR BUSINESS STARTUP KNOWLEDGE CENTRE PRESS HERE
FOR INFORMATION ABOUT COMPANY INCORPORATION PRESS HERE FOR PREVIOUS MONTH EMAIL NEWSLETTERS PRESS HERE

FOR PROPERTY INVESTMENT AND TAX INFORMATION PRESS HERE

FOR FRANCHISE INVESTMENT AND TAX INFORMATION PRESS HERE


The information provided in this email newsletter is for informational purposes only.   TotalAccounting accepts no responsibility for the opinions and information expressed in the information provided and it is provided "as is" without warranty of any kind.    The user assumes the entire risk as to the accuracy and use of this document.   Readers are asked to seek professional advice pertaining to their own circumstances.    The TotalAccounting email newsletter may be copied and distributed subject to the following conditions:
  • All text must be copied without modification and all pages must be included.
  • This document must not be distributed for profit.    

 

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