Provisional tax: What you need to know
If you are an employee, your employer sorts out PAYE on your behalf. But when you’re self-employed, you need to pay your own income tax. For example, if you earned $100,000 from your business, the income tax on that income would be just under $24,000. And, this can be...
Happy Christmas
We wish you a very happy Christmas and well deserved end-of-year break. It has been another challenging year and we hope you will be able to take some time at Christmas to connect with family and friends to recharge and relax. We are grateful for the opportunity to...
Can you claim clothing as a business expense?
We get a lot of questions about what you can claim as a business expense, and clothing is one of the confusing topics when you’re self-employed. Most jobs have some sort of dress code – whether you wear suits and heels or overalls and steel-toed boots. Work clothes...
Key numbers to focus on in your business now
As a business owner, it’s never been more important to have a good grasp on your finances. For many businesses, priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to create a viable business model. To...
Business tips: Adding value to your business prior to an exit
Generally speaking, an exit strategy will be put in place years before your planned exit date. This gives you time to work on your sale plan and deal with any succession issues. But more importantly, it gives you the time needed to add additional value to the business...
Bringing your cashflow processes into the digital age
Keeping on top of your cashflow is even more important during tough economic times. With a global slowdown on the cards, energy prices soaring and supply chain still challenges, cash is likely to be tight over the coming year and beyond. Cloud technology and fintech...
How high will mortgage rates go?
The latest inflation data gave the Reserve Bank (RBNZ) and economists a bit of a shock. At 7.2%, it was much higher than anyone had forecast, and it means the RBNZ is likely to be more aggressive with its official cash rate rises. A higher official cash (OCR) rate...
Is the build-to-rent tax break unfair on mum and dad landlords?
The Government recently announced a new tax incentive targeted at build-to-rent developers – and ‘mum and dad’ property investors aren’t happy. The new bill gives these developers an exemption from the tax deductibility limitations that are placed on most private...
Have you thought about income equalisation?
To ease financial pressure, it might be worth considering the income equalisation scheme available for farmers, fishers, growers and foresters. In challenging times, it may help you manage your tax obligations as well as everything else. Income equalisation, including...
Adding value to your business prior to an exit
Generally speaking, an exit strategy will be put in place years before your planned exit date. This gives you time to work on your sale plan and deal with any succession issues. But more importantly, it gives you the time needed to add additional value to the business...
Don’t burn out this winter!
It’s tough going for business owners this winter. Illness is rampaging through the community – it’s hitting staff, suppliers, clients and schools, creating disruption throughout the economy. With the labour market tight, businesses are already understaffed. Add high...
Tough choices under proposed water reforms
Changes proposed to drinking water, wastewater, and stormwater legislation are ruffling feathers in rural communities. If adopted, the Three Waters Reforms could mean water systems, currently owned and originally set up by locals to supply each other with water, will...
It’s now over $11,500 a year to run your vehicle
Inland Revenue just released its kilometre rates for the latest tax year, which indicate running costs for vehicles. For the first 14,000km travelled each year, the rate is 83 cents per kilometre, which comes to a total of $11,620 – up from $11,060 the previous year....
Succession planning for small businesses
It takes guts to start a business. But to succeed also takes a strategic mindset. What does that mean? How do you know if you’re thinking strategically enough? One way is to imagine you’re about to put your business on the market. What would a potential buyer hope to...
IRD says ‘No more Mr Nice Guy’
Inland Revenue was taking a much more relaxed approach to outstanding tax debt during 2020 and 2021 – but now it’s ready to crack down. Since the start of July, it has stepped up its efforts to pursue outstanding amounts from local businesses. PAYE and KiwiSaver...
Understanding the Use of Money Interest (UOMI) System
Some taxpayers are subject to use of money interest when they don’t pay their tax, pay late or underpay. When do you have to pay use of money interest to Inland Revenue? Taxpayers that must pay use of money interest are those who: have under-estimated their...
How much is our work taxed compared to other countries?
The OECD recently released its latest Taxing Wages 2022 report, and it’s interesting to see where New Zealand falls compared to other developed nations when it comes to tax. One of the purposes of this particular paper was to look at the impact of Covid-19 on how...
Business tips: Using forecasting to help your decision-making
Producing regular management information is one way to help improve your business decision-making. But looking at historical numbers can only tell you so much. In business, you want to know what the future holds. And to make truly informed decisions about your future...
Watch out for new trust rules that have the potential to put your assets at risk
There have been a lot of rule changes for trusts over the past few years – and now Inland Revenue has introduced another tweak, one you need to know about if you use trusts to protect your assets. Who’s who when it comes to trusts To understand the new rule, you need...
Keeping tabs on stressed staff – why you need to check in
A Southland counsellor researching mental health issues facing young men in the rural sector has confirmed what she suspected: there’s a perception of shame in speaking up. “Young rural men don’t seek help,” says Kathryn Wright. “They suffer in silence.” As the wife...
Managing farm debt
If you’re feeling uncertain about your next year of farming, you’re not alone. Farmer confidence is low, with more than 11% of respondents to a Federated Farmers survey expecting profit to drop over the next year. Whatever your position, it’s always beneficial to talk...