McLEAN AND CO. Chartered Accountants

Accounting          Taxation         Business Advice and Development Assistance           Audits                             

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

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



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



  1. Managing Financial Difficulty and Debt

  2. Hiring Staff

  3. Annual Holidays



If you think you will have difficulty meeting any of your tax obligations it is important that you contact IRD to discuss your situation as penalties may apply if you do not pay on time.

Overdue income tax returns

If we have asked you to file a return and you have not yet done so, we will estimate the amount of tax we think you owe. This is called a "default assessment". You may also be charged a late filing penalty. It is important that you file the overdue return so that your correct tax position can be confirmed. You may even be entitled to a refund.

If you are having difficulties meeting your obligations

There are a range of options available for paying amounts due. If you are unable to pay the full amount on time, please contact us as soon as possible. You do not have to wait until the due date for payment has passed.

Student loan borrowers

If you think you may have difficulty meeting your loan obligations please get in touch with us. We will look at your specific situation and try to come up with a solution that is in your best interest.

Child support paying parents

The best way to avoid debt is to pay the full amount you owe, on time, every month. But if you get behind in your payments or think you are going to have trouble paying on time, please contact us.

Penalties and interest

If you know that you will not be able to pay your tax on time or if you currently have debt outstanding, there are a number of options available to you. Learn also about the penalties and interest that may apply for failing to meet tax obligations.




If you are thinking of taking on new staff, or replacing staff who are leaving, this very comprehensive check-list from the Department of Labour will help guide you through the process

There are three steps in the hiring process
1. Describing and advertising the job.
2. Reviewing applications through to the interview.
3. Selecting and appointing.

1: Describing and Advertising the Job
To enable to get the best person for the position both you and the applicant need to have a clear idea of:

If it is the first time you are filling the position, this is the time to consider the needs and direction of your business. If you are replacing an exiting employee then it is also worthwhile to review the present job description to make certain it fits in with your needs.

A job description should:

Attracting suitable Job Applicants
How you attract the best applicant for the job depends on the job, how much you are able to spend on advertising, and how much time you have.
When you prepare and publish an advertisement, you retain responsibility for what is said, and you need to make sure that what is said is accurate and not discriminatory.

2: Receiving Applications Through to Interviewing
Application Forms:
It may take time to provide and deal with an application form, however there are a number of advantages. To highlight a few:

Disclosing details of an applicant even by accident, is likely to be a breach of the Privacy Act and may ruin the relationship with a potential employee.
More detailed information is available on www.
It is also good practice to consider the following:

Contacting Referees and making Independent Enquiries
It is often crucial to follow up referees and make independent inquiries, such inquiries can provide invaluable information and can also be used to test your assessment of an applicant.

Employment Agreements
There are minimum legal rights that apply which neither you nor your employee can agree to reduce. Once you have met those requirements the range of payment or conditions you are likely to be driven by:

3: Selecting and Appointing
Making the Selection decision:

 Selecting the most suitable applicant involves ranking each applicant against the needs of the job and the personal attributes you originally identified.

Be careful that any ranking system you use is fair. Avoid considerations that amount to unlawful discrimination under the Human Rights Act. Information on the Act is available at

When to make a Decision
It is not advisable to make a snap decision about offering an applicant a job during the course of an interview. Taking time to compare the applicants will lead to better decisions.

When you make a selection decision remember that if a challenge is later taken by an unsuccessful candidate (for example on the grounds of discrimination), documentation relevant to the appointment process and decision may have to be disclosed.

Deciding to Appoint 
Remember, you are not compelled to actually make an appointment. If the applications are not of a suitable standard, or if circumstances change during the recruitment process and you do not now need a new employee, you can simply decide not to offer any of the applicants a job.

Making an Offer
When you have decided on your preferred candidate, the next step is to formally offer them the position and also offer them an employment agreement.

In order to do this you must:
Provide the job applicant with a written copy of the proposed employment agreement. Advise the employee that they are entitled to seek independent advice about the agreement and its terms;  are invited to respond to the proposed agreement; have a reasonable opportunity to seek that advice. (What is reasonable will depend on the circumstances. It can be helpful to agree with the employee in advance how long they anticipate they would need in order to take advice).

Conditions in Individual Employment Agreement
When an individual employment agreement is to be offered, it must be in writing. This ensures that there is a clear understanding of the terms and conditions on which the employment agreement has been offered, and can help to prevent later disputes. The employment agreement builder can guide you through the developing your employment agreement [see]

Individual employment agreements are required to contain the following core terms:

For most employees there must also be a clause covering the rights of the employee on the sale or transfer of the business, or if work is contracted out.

Some employees undertaking work such as cleaning and food catering have different rights in this area. Information on those employees and their rights can be obtained by phoning 0800 20 90 20 or visiting

You are also required to tell the employee about their rights under the Holidays Act. This requirement can be met by including these in the employment agreement. It is important that these rights can be clearly understood by the employee. The employment agreement guide includes examples of terms of employment that are typically dealt with in an agreement [ see]

It is important to ensure that the agreement records all the agreed benefits that the employee will be entitled to. If any assurances were given in the interview stage, then it is also wise to clearly record those assurances in the written agreement.

Offers and Employment Agreements for Part-time and Casual Jobs
The process of offer and consideration of employment agreements for part-time jobs has to comply with the same requirements that apply to full-time employment. The obligations on employers that are discussed above apply. Casual employees generally have the similar minimum employment rights as other employees. More details can be obtained by phoning 0800 90 20 90 or by visiting

Offers and Employment Agreements for Fixed-term Employees
The process and consideration of employment agreements for fixed term jobs has to comply with the same requirements as permanent employment. Fixed- term employees generally have similar minimum employment rights other employees. For more information on the requirements of a fixed-term agreement go to

Failure to comply with the requirements relating to fixed-term agreements could affect your ability to end the employment at the expiry of the fixed term, by entitling the employee to treat the employment as continuing.

Offers and Employment Agreements for Probationary Periods
The process of offer and consideration of employment agreements has to comply with the requirements for full time employment when you are offering someone a position involving a probationary period. Employees during and at the termination of their probationary period have similar minimum employment rights as full time employees.

For information on the requirements of probationary periods refer to

Avoiding a Claim of Unfair Bargaining
The Act seeks to ensure that new employees have the opportunity to discuss and agree their proposed terms of employment in good faith environment.
An employee can take a claim against you if the bargaining that occurred over the terms of their individual employment agreement was unfair. Unfair bargaining is defined as including situations where the employee:

If you require more detailed information on the hiring process refer to to order a copy of the How to Hire Guide or see to view an electronic copy.



Under the Holidays Act 2003 all employees are entitled to a minimum of four weeks annual holidays.

This section has information on how to calculate annual holiday entitlements and pay, and how the transition from three to four weeks annual holidays works.






The information provided in this email newsletter is for informational purposes only.   McLean and Co. accept 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 McLean and Co. 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.    


If we can assist further, please email McLean and Co as follows: