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 FEBRUARY 2016
 

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. Reminder- Income Tax Returns Outstanding for Filing

  2. Cash Jobs

  3. Child Support Changes

  4. ACC Levy Changes

  5. Preparation for Tax Time and to Avoid Last Minute Panic

 

REMINDER - INCOME TAX RETURNS OUTSTANDING FOR FILING

There are still a number of clients who have not contacted TotalAccounting for an appointment to provide and review  their year ending 31 March 2015  Financial Documentation to enable compilation of Financial Statements and filing of Income Tax Returns with IRD.   A reminder also to clients who TotalAccounting have made an appointment with and for whom we are awaiting follow up information on queries.    Returns are due to be filed with IRD by 31 March 2016, assuming you still have extension of time, and depending on your activity during the year you may be liable for Income Tax to pay in April 2016.  The office will close from 26 March 2016 which therefore means that Returns have to be filed by 25 March 2016.  The workload over the period to 25 March 2016  for TotalAccounting is very busy, and it is therefore suggested that you make contact sooner rather than later.

 

CASH JOBS

We understand that IRD Audit are currently targeting Cash Jobs in the construction industry, and have identified taxpayers in this industry.  We have been informed that these taxpayers are likely to receive correspondence in this regard from IRD.  IRD have also advised that this Cash Jobs is one of their key emphasis areas at present, and all other industry sectors are being monitored also.  

Income Tax law is that it is okay to do jobs for cash as long as you record them and declare the income when you're filing your annual Tax Return. Make sure that:

  • you record every job, no matter how big or small
  • if you're registered for GST you charge it. You must be registered for GST when your annual turnover exceeds $60,000
  • you declare all your income when you file your Tax Return.

 

CHILD SUPPORT CHANGES

On 1 April 2016, there are new changes to Child Support. Find out what these changes are and how they could affect you.

Change to the Child Support qualifying age

Learn about the Child Support age limit change and watch the IRD video.

Penalty rate decrease and debt write-off changes

Find out about the decrease to penalty rates and how IRD can write-off penalties.

Two new Child Support administrative review grounds

Learn more about the two new Child Support administrative review grounds and watch the IRD video.

Deductions from your employment income

Find out how you can get your Child Support deductions taken from your pay.

Watch the IRD Child Support videos

Watch the IRD videos to help you understand the April 2016 change to the qualifying age, and what to do if you disagree with your Child Support. Also learn about the changes made to child support on 1 April 2015.

2015 Child Support changes

Child Support laws changed on 1 April 2015. Find out more about what changed.

 

ACC LEVY CHANGES

When: 2016/17 from 1 April 2016

What: The ACC portion of your vehicle registration is due to reduce again to an average of $130 per year. And part of the work levy known as the residual levy is also to be removed entirely. Details have yet to be finalised.

Why: We all used to pay the same ACC levy no matter what vehicle we owned. Last year ACC introduced a ratings system, based on how well a vehicle protected passengers and others on the road if involved in a crash. As a result, your vehicle’s levy is now based on an assessment of its risk.

For the residual levy, ACC has collected––and saved––enough to fund the lifetime cost of every current ACC claim. From 1 April 2016, most businesses will pay lower work levies due to the residual levy being removed and an average drop in the work levy rate. Levies will go up for a small number of businesses, but ACC will be in touch with those to explain why. Find out more on the Shape Your ACC website.

More information:

ACC Levies – Business.govt.nz’s tax section

ACC Website for Business

ACC Levies explained

 

PREPARATION FOR TAX TIME AND TO AVOID LAST MINUTE PANIC

You can’t avoid tax time – but you can prepare for it. Follow these tips to make it easier for your business. 

Get your Records in order

Throughout the year keep receipts, as well as invoices you’ve received and copies of invoices you’ve sent out. Keep them tidy and in order. It helps to record on each receipt the reason for it, eg why you took that taxi or who you bought lunch for back in November.

Read more about keeping records.

Save regularly for Tax

You should put aside money for tax each time you receive income. This means your tax bill won’t come as a complete shock. If you put it in a high-interest savings account, then the interest earned could assist further in paying Income Tax due. This is really important during your first year of business, so that you’ve got the money to pay your first year of tax in your second year, as well as paying provisional tax.  IRD's Guide to Provisional Tax (IR289) explains this in more detail.

 

 

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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