Paying your Tax in person at Westpac Banks

IRD are no longer accepting payment via cheque, however, there is still a way that you can pay in person at Westpac Banks. You can make Cash or EFTPOS payments to the IRD by visiting a Westpac branch or Westpac Smart ATM. To do this you must either: Bring your return or statement that shows a barcode Create a barcode before your visit How to create a barcode for your…  Read more

Changes to paid parental leave from 1 July 2020

From 1 July 2020, the duration of parental leave payments will extend from 22 weeks to 26 weeks and the maximum weekly rate for eligible parents will increase from $585.80 to $606.46 gross. The minimum payment rate for self-employed parents increases from $177.00 to $189.00 gross per week, which is equal to 10 hours of the current adult minimum wage. The number of ‘Keeping in Touch’ days will also increase…  Read more

How to pay tax

Have you received the latest update from Inland Revenue with ways you can now pay your tax? Read on to find out more… No more cheques – pay online instead From 1 March 2020 IRD will stop accepting payment by cheque, including cheques dated after 1 March. The safest and quickest ways for you to pay tax is online – either in myIR or through your bank. For more information on…  Read more

Tradie Cashies becoming a thing of the past

IRD is looking hard at tax crime in the building sector – are you declaring all your income? Have you had a customer ask for a cash discount? You know – so it doesn’t “cost as much” because it doesn’t have to go through the books. Who really pays for that discount? Tradies around the country who do undeclared cash jobs, discounted for their mates or simply to give the…  Read more

IRD and ACC are calling ‘time’ on cheques

Inland Revenue and the Accident Compensation Corporation are calling ‘time’ on cheques.   From March next year, IR and ACC will no longer accept payments by cheque from customers who are able to use alternative payment options. IR received more than 430,000 cheques last financial year, the largest number received by any public sector agency. ACC received approximately 25,000 cheques from business customers. Those numbers have been dropping by around…  Read more

When should I register for GST?

I’m making sales, woo hoo! Now what? We often are asked, “When should I register for GST?” It’s good to know that you don’t have to register for GST just because you start trading and selling goods and/or services. You do however have to register for GST if you carry out a taxable activity, and: Your turnover was $60,000 or more in the last 12 months or will be $60,000…  Read more

New IR mileage rates

From the desk of The Commissioner of Inland Revenue. The Commissioner has issued a new Operational Statement 18/01 – Commissioner’s statement on using a kilometre rate for business running of a motor vehicle. This updates and replaces the previous Operation Statement issued in May 2009. The new rules allow the choice between using the cost method (which is based on keeping records of actual costs incurred) or a kilometre rate…  Read more

myIR online services upgraded this week

Bookkeepers and business owners have been on pin cushions this last weekend with the IR being closed for the latest on the business transformation project.  On 17 April, improved myIR online services went live, “making tax simpler for you”.  The latest improvements are designed to make it easier to do business the Inland Revenue.    But change can be hard right? The Inland Revenue have created some quick tour videos of the…  Read more

Payday reporting

The payroll landscape is constantly changing, and not just for businesses and staff, but those of us who have responsibility of ensuring employees pay is correct.  The Payday Reporting legislation is currently before parliament and proposes to change the way payroll information is reported to the IR. Currently reporting is done on a monthly basis by way of filing our PAYE returns (EMS and EDF schedules along with Kiwisaver forms).…  Read more

Paye as you earn – AIM

Pay-as-you-earn tax (AIM) – what does that mean for you? From April 2018, small businesses, sole traders and contractors can choose a new pay-as-you-earn option, rather than paying provisional tax in instalments several times a year. The IR are introducing the Accounting Income Method (AIM) so you can pay tax based on the profit in your business during the year.  This aligns with the GST monthly or two monthly periods…  Read more

Travel for work?

Do you travel for work?  There are expenses you can claim against your income and there are those you cant.  Here business.govt.nz gives us the low down. What can you claim? In general, when you’re away from home you can claim for: flights taxis, or mileage if you use your own car for business travel accommodation meals and snacks. Accommodation If you’re attending a work-related meeting, conference or training course…  Read more

CHRISTMAS FUNCTIONS AND ENTERTAINMENT RULES

Entertainment – these rules create a huge amount of confusion don’t they?  In this blog we will try and clarify this for you. You may be able to claim as business expenses events such as Christmas functions or giving gifts to employees. However, you may not be able to claim all of the costs, and they may also be subject to fringe benefit tax (FBT). FBT is a tax paid…  Read more

Payroll – how do I work out leave entitlements..

Talking about payroll and leave entitlements causes people to run and hide and brings on headaches of gigantic proportions. How on earth is the average business owner meant to understand what their obligations are?  Confused?  I am not surprised! Let me try and explain… 1. Annual leave accrues in weeks not hours The Act provides two dimensions for annual leave – time and money. The time dimension, 4 weeks, accrues at the end…  Read more

Woohoo…….. wait, what??

It’s that time of the year when every second ad on TV, the radio or the net is advertising tax refunds. Woohoo… show me the money, My tax refund… money on the mind… and many more.  The question always is “Which company do I go for to get my money back?”, then it’s “wait…what?? they’re charging how much??”. When these companies are charging upwards of 20%-30%, (or ‘ONLY $39″ with…  Read more

How do I get it right? New Contractor Tax Changes

Contractor tax changes (Information courtesy of Business.govt) All contractors can have tax deducted from their pay at a rate of their choosing, and some MUST now do this. If you get it wrong, you might find your pay packet is 45% lighter than you expect. If their payer agrees, all contractors can now have tax deducted from their pay at a flat rate of their choosing.  All Contractors hired by…  Read more

Contractor or Employee? How do I know?

I know, its a confusing topic right? There are so many questions! How does the average New Zealander figure it out? Well, hopefully we can help unravel the mystery of the Contractor versus Employee confusion. In a nutshell, an employee is said to have a “contract of service” with an employer, while a contractor is said to have a “contract for service”.     Why the difference is important An employee…  Read more

CHANGE IS COMING WITH APRIL 1st 2017

1 April 2017 brings some important changes for taxpayers. Most of the changes are business friendly and are designed to reduce compliance costs. New Minimum Wage Rates The adult minimum wage rate will increase from $15.25 to $15.75 (before tax) an hour. The starting-out wage and training minimum wage will also increase from $12.20 to $12.60 (before tax) an hour. PLEASE NOTE, WE WILL CHANGE THE RATE FOR ANY EMPLOYEES CONCERNED FOR THOSE OF YOU WE PROCESS PAYROLL…  Read more

I have a small business… do I really need to file a tax return now?

Generally speaking if you are charging others for goods and/or services with a view to making a profit (your aim does not need to be the result) you are usually operating a business and liable to file a tax return and pay tax on any profit (or claim the loss against any other income if you made a loss). When you have a business you have a range of responsibilities…  Read more

IRD Business Tax update July 2016 Issue 74

The IRD have released their Business Tax update for the month, and includes information on the following: Reminders Keeping records for tax returns File your IR3 income tax return online and on time GST treatment of credit card fees/surcharges charged by some retailers Find out what tax could look like for you in the future “Taking Care of Business” events Reading ACC levy invoices is about to get easier Phone…  Read more

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