June 2019 Newsletter

Hello and welcome to our June newsletter.  It's been a pretty soggy start to the winter and it's hard to believe that the year is already half over!  We've turned up the heating in our office and, as always, look forward to seeing you when you pop in with your information or to sign off your accounts. 

As many of you are aware, we have had a pretty tough quarter, courtesy of Inland Revenue and their new system which they chose the worst time of the year in which to introduce.  Its certainly come with some challenges which we will talk about later in this newsletter.

  

Upcoming tax payments

For those of you who are registered for GST 2 monthly, your GST return for the period ending 31 May is due to be filed with Inland Revenue by 28 June 2019.   If you haven't already done so, please send us your information ASAP so that we can get your return filed on time. Please call if you need any help or if you are unable to get your information to us.

On 28 August 2019, both July GST returns and the first instalment of provisional tax for those of you not registered for GST or registered for GST on a 2 monthly basis will be due.  As always, we will send reminder notices to pay this provisional tax 3 weeks before the due date.  Please ensure that we have your correct email address to which to send these notices.

Those of you registered for GST 6 monthly who pay provisional tax: your first instalment isn't due until 28 October 2019 - so don't panic if you don't receive a notice in August.

 

 KiwiSaver Deadline

Just a reminder that the Government contributes 50 cents for each dollar you contribute to your KiwiSaver account, up to a maximum of $521.43 per year. To receive the full annual Government contribution, you'll need to contribute at least $1,042.86 between 1 July and 30 June each year and meet the eligibility criteria. You'll be able to receive the annual Government contribution from the age of 18 up until you're eligible to make a KiwiSaver retirement withdrawal as long as you live mainly in New Zealand.  If you haven't contributed at least $1,042.86 for the current year, we recommend you make your payment by the end of this week.

 

ACC Payments

We have become aware that ACC are automatically taking payment in full where taxpayers have previously signed a direct debit form.  Please read your ACC invoice carefully so that you are aware of when payment will be taken.


Request for information from banks

New Zealand banks are warning that some customers could have their accounts frozen if they don't respond to requests for information.

As part of their regulatory obligations, banks are required to undertake due diligence on the foreign tax status of their customers.

To fulfil this duty, all banks have been contacting customers requesting details on their status.  If you've been contacted, it's important that you respond to your bank, regardless of your tax status. If you don't respond, or if your response is incomplete, your bank will be required to freeze or close your accounts.


Ring-fencing of Rental losses

The government is still working through the legislation for ring-fencing rental losses but, regardless of how long this process takes, there is no doubt that it will  be backdated to 1 April 2019.  We were pleased to see that many of you took our advice and got as many property repairs completed before 1 April as you could.  Please be aware that moving forward, if your expenses exceed your income in any one year, the excess expense will be pushed forward for offset against future profits instead of being offset against other income.

We are aware that some of you have, or are considering, selling your rental properties as a result of this legislation.  Please do consider this if you are going to struggle to keep up your mortgage payments moving forward. However, please let us know if you are considering this option so that we can advise as to any tax implications of this.

 

Wills and Powers of Attorney

Although none of us like to think of this subject, we need to be aware that there is a fine line between life, death and incapacity and we need to plan for this.  A recent conversation at a 21st birthday party revealed that many young people believe that life insurance is a rip-off because most people who take it out stop it before they receive a payment!  Life insurance is usually necessary if you have debt and dependents so please don't listen to the man in the pub and assume that it is a waste of money.  Likewise, please consider keeping your will updated and having power of attorney in place, just in case.  Also keep details of the names of your lawyer and accountant along with your important documents so that people know who to contact when required.  Please note that if you die without a will (intestate) then administering your estate becomes complex and expensive and your assets may not be distributed as you would wish.


Anti Money Laundering (AML) Legislation

Thank you to everyone who has sent or brought in the AML documentation.  For those of you who haven't yet done this, please note that it is a legal requirement for us to do this (just like your bank, lawyer and real estate agent) and that the fact  that you may have been through the procedure with another provider doesn't prevent the requirement for us to also do this. We appreciate your assistance with this matter.


Inland Revenue

As mentioned above, despite protests from every tax agent in the country, Inland Revenue closed down over the Easter/Anzac Day period to transfer all of the income tax and PAYE data onto their new system.  They were under the illusion that it would be a seamless transition over a period when everyone was on holiday and that everything would work perfectly from day 1.

The reality was very different!  Their new system is an off the shelf product from Canada, who has a similar tax system to us, but do not have the likes of ACC, Working for Families or Student Loan administered through the tax system.  Although we are confident that eventually the new system will be adequately modified to cope with the NZ tax environment, in the short term it has caused substantial additional work for us and, most concerningly has left us without visibility of a lot of features which we used to take for granted.  The main one of these being, that for the first month after installation, we had no data feeds into our system, meaning that we were unable to chase clients for missed tax payments.  It has also put us well behind schedule in regards to completing tax returns.

We would like to take this opportunity to apologise for any inconveniences these issues have caused our clients.  Please be assured that we are working as hard as we can to work around the IRD issues and get back on track.


Payday Filing

As part of the transition to the new system, IRD have also brought in payday filing which has proven, in many cases, to be quite onerous.  For those of you that aren't aware, the PAYE job that we used to do once a month, now must be done every time you pay an employee or contractor for whom you deduct withholding tax.  Up until now, IRD have allowed some lee-way for people who have failed to file the information within 2 days of payment, but they will begin to impose penalties shortly, so you need to have robust systems in place to fulfil this obligation.

If you currently pay contractors on an ad hoc basis, we suggest that you simplify matters by paying people together and regularly – on the same day each week or each month. 

You could also consider outsourcing your payroll to a payroll intermediary company such as Smart Payroll, iPayroll or Thankyou Payroll, who, for a small weekly fee, calculate the pays, pay the staff and file and pay Inland Revenue. All you need to do is submit the timesheets and pay the intermediary – they do everything else.

 

As always, we look forward to assisting you with any queries you may have so please don't hesitate to contact us if you need help.

 

From the team at Tyler Price – Isobel, Abbey, Bryony, Caroline, Karen, Lichelle, Tina, Virginia and Tilly

 

March 2019 Newsletter

Hello and welcome to our first newsletter for 2019.

 

After a fabulous summer, there is definitely a slight chill in the air in the mornings.  That heralds the end of another tax year here for us so we will be emailing our annual questionnaire to you shortly.  Please keep an eye on your inbox for this.

 

Please note that this newsletter contains information regarding major tax changes which may affect you so please read it to ensure that you are informed of these changes.

 

Important Upcoming Tax Dates

 

By now, those of you who have an extension of time should have received your 2018 terminal tax notices. This tax is due on the 7th of April.  Don't forget that if you are sending a cheque, it must be received by the 7th so get it in the post in plenty of time!

We'll also be emailing out the tax notices for the 2019 final provisional tax instalment shortly (payment due on the 7th of May).   Please look out for these in your inbox.

If paying either of these taxes by the due date is not possible, please don't stress!  Get in touch with us as soon as you can so we can either set up a payment arrangement with Inland Revenue or buy your tax from one of our tax pool suppliers.

 

For those of you who are GST registered and your returns are aligned with a 31st of March balance date, your due date for filing and payment of your March GST return will be the 7th of May.  Note that this is our busiest time of the year so please get your information to us as soon as you can to ensure we can meet the deadline.

 

Additional requirements for 31st March

·         Record your debtors (people who owe you money) as at 31 March 2019.

 

·         Record your creditors (people you owe money to) as at 31 March 2019.

 

·         Carry out a stock take, if you carry and sell stock.

 

·         Keep a copy of your RWT certificates, income protection insurance certificates and evidence of your company or trust's bank balance at 31 March. Scan them directly to us if there is a chance you may lose them!

 

School donations

 

It's that time of the year again when school fees and donations are being paid.  Don't forget you can claim a 33% rebate on these donations (as well as donations to most charities), so please remember to include these in your receipts if paid by the 31st March 2019.  Note that activity fees and some levies imposed by schools are not claimable so we must have your receipt to ensure we are only claiming the donation part of the payment.

 

 

Payday Filing

 

All of you who are registered as employers should be well aware by now (thanks to IRD's ruthless campaign of harassment) that Payday Filing becomes compulsory on 1 April.

 

The software developers are all putting their final touches on their systems so that those of  you using Xero, MYOB or Ace Payroll should be able to file, with a push of the button, from the start date. 

 

Those of you on manual systems  need to set up your business MyIR account with the new PAYE system.  We've started to use this and are finding it very user friendly.

 

Please note that you must file returns every time you pay an employee or contractor for whom you deduct withholding tax.  It should be done within 2 days of payment.  We recommend that you simply make it part of the payment process, so it doesn't get forgotten.  If you currently pay contractors on an ad hoc basis, we suggest that you could simplify matters by paying people together and regularly – on the same day each week or each month. 

 

You could also consider outsourcing your payroll to a payroll intermediary company such as Smart Payroll, iPayroll or Thankyou Payroll, who, for a small weekly fee, calculate the pays, pay the staff and file and pay Inland Revenue. All you need to do is submit the timesheets and pay the intermediary – they do everything else.

 

If you have any queries please contact us!

 

 

Inland Revenue Closedown

 

Please note that IRD are closing down from 3pm on the 18th until 8am on the 26th of April to move Income Tax onto their new system.  In that time there will be no access to their phones or website.  Whilst we are very pleased that this is finally happening (all tax types will now be accessed together) their timing could have been better from our perspective!  What this shut down will mean, however, is that we have been granted an extension for filing and paying March PAYE. The return and payment will be due on the 26th of April instead of the 20th.  So don't panic if you can't file your return by the normal due date because of the closure.

 

 

Important Tax Changes for Property Investors

 

Rental losses to be ring-fenced

 

From 1 April 2019 losses made on rental properties will be ring-fenced so they can only be offset against future rental income.  So those of you who currently receive tax refunds due to the offset of rental losses against other income, this will be the final year you will receive these. If you are relying on these refunds, we therefore recommend:

1.      You complete any required repairs and maintenance before 31 March 2019

2.      Consider your options in regards to continuing to own your rental property

 

We are happy to advise if you wish to discuss.

 

 

Proposed Capital Gains Tax

 

We are receiving lots of queries in regards to this.  Please note that it is very early in the process and no-one at this stage knows what regime we are likely to end up with.  Our advice at this stage is to not panic.  If capital gains tax is introduced, we expect it will only be imposed on gains made from the date the legislation comes in and you will have plenty of opportunity to have your house, shares or business valued at that date so you won't be taxed on historical gains.  We will keep you informed as things become clearer!

ACC Levy Refunds

ACC have been issuing vague letters that tell you that you may be receiving an ACC refund.  These letters are, in fact, genuine although no guarantee of a refund.  In short, they have discovered an error, whereby, sole traders who were levied provisionally and then ceased to operate as a sole trader, may not have been reimbursed the provisional tax levy.  The refunds are generally fairly small so our advice to you if you receive a letter is to wait and seen if something actually comes of it. If it does, please be aware that this will be taxable as you would have claimed it as a tax deduction at the time payment was made.

 

Time to consider your software options

The start of a new tax year is the perfect time to switch accounting systems if this is on your agenda.  For those of you considering moving onto Xero or MYOB Live please get in touch with us as soon as you can to get this in place before 1 April.

 

Anti-Money Laundering Legislation

Thank you to all of you who have come in with your  proof of identity and address, or sent in certified copies.  For those of you who have not yet done this, don't forget to bring these in next time you are in our vicinity.

 

Staff Update

We are pleased to advise that Bryony returned from maternity leave in February and is now well and truly settled back in.  She's working Tuesdays, Wednesdays and Fridays, so for those of you for whom she is your accountant, feel free to contact her if you need assistance. 

 

The team at Tyler Price would like to wish you all a very happy and relaxing Easter.  As always, we look forward to assisting you with any queries you may have coming up to the end of the financial year, and we are only too happy to be able to help.

 

 

From the team at Tyler Price – Isobel, Abbey, Bryony, Caroline, Karen, Lichelle, Tina, Virginia and Tilly.

December 2018 Newsletter

Hello and welcome to our final newsletter for 2018.   It's been a huge year with major changes for us and we are all looking forward to a relaxing break over Christmas.  As always, we'd like to take this opportunity to thank you for your continued support and we look forward to seeing you again in 2019.

In this issue we look at:

·         Christmas office closure and re-opening dates

·         Important upcoming tax dates

·         Staff Update

·         Bookkeeping Service

·         Payments to Inland Revenue

·         Anti-Money Laundering Legislation

·         Audit Insurance

·         IRD Scam Emails

·         GST Payment Arrangements

·         Increase in Per Diems

·         Make a Will!

Christmas Office Closure

The office will be closing for the Christmas break on Wednesday the 19th December and will be re-opening on Monday the 14th January.  The office@tylerprice.co.nz email will be periodically monitored throughout the closedown period, so if you do need our assistance during this time, please email this address and someone will get back to you as soon as possible.

Important Tax Dates

Provisional tax payment notices have been sent out to those of you required to make a payment on the 15th of January 2019.  PLEASE DO NOT FORGET TO PAY THIS TAX!  If you have any questions regarding this please contact us before the office closes for the Christmas break so we can assist you if need be.

For those of you who file GST two monthly, your November GST will also be due for payment on the 15th of January 2019. If you are heading away for Christmas, it would be best to get your information to us well before you leave.

And after that:

 

7 February 2019         Terminal tax due for taxpayers who do not have extension of time (non-complying taxpayers)

 

7 April 2019                Terminal tax due for taxpayers who do have extension of time.     

Staff Update

After much anticipation we are very pleased to announce that Lichelle had a baby girl, called Nina, on the 25th of October.  Lichelle is currently planning to return to work on 1 October next year.

Bryony, who left us to have baby Tess in December last year, will be returning to work on the 19th of February, so she will be picking up the bulk of Lichelle's clients. Most of you will already know Bryony, as Lichelle was her replacement when she went on maternity leave!

Bookkeeping Service

For those of you who struggle to keep up with your paperwork, we are very pleased to advise that we are now offering a bookkeeping service at a very competitive rate.  If you are interested, please contact us.

Payments to Inland Revenue

We've noticed that a few of you have a habit of rounding up payments to Inland Revenue to the nearest dollar.  Please do not do this!  Inland Revenue don't write these overpayments off – we have to manually transfer them to other periods or tax types.  This takes time which we must charge you for.

Anti-Money Laundering (AML) Legislation

We are now 2 months into the AML legislation requirements.  Thank you to all of you who have provided the additional information that we must receive in order to fulfil the requirements.  We are in the process of sending out letters to all of our clients asking for verification of identity and residential address.  We would appreciate your prompt response to these requests.  We understand that this is a frustrating process, but unfortunately it needs to be done.

Audit Insurance

We have noticed over the past few months that there has been significantly increased activity by Inland Revenue in the checking of information provided to them.  We have received a few letters and phone calls asking for back-up documentation for expenses and donations claimed.  In particular they are targeting rental properties with large repair bills, tradies and hospitality businesses.  But we have also had a review on one of our film industry clients so it appears that they are throwing their net quite wide.  Audit insurance pays for our time from the initial phone call or letter to resolution.  It's not too late to take out this insurance if you are concerned that they may come knocking.

IRD Scam Emails

We've also noted an increase in scam IRD emails, claiming that you are due a refund.  Please note that IRD will never send you a direct email with a link so if you receive one, delete it immediately. If you have a MyIR account, log into that and check to see if you have any outstanding matters.  If you don't liaise with the IRD directly, then check with us as to the validity of the email.

GST Payment Arrangements

For those of you who do not put enough GST aside to pay to Inland Revenue on the GST payment dates, there has always been an option to make an arrangement to pay by instalment.  It's not an option that we particularly encourage, because IRD charge a 1% penalty and interest on the balances owing.  However it can be handy when things go wrong.  However, many of you face the same issue for every GST return you file and so are continuously on payment arrangements.  IRD have now had enough of this and are refusing to make arrangements for repeat "offenders".  Without the payment arrangement additional penalties accrue very quickly.

So please be aware that GST is not your money and must be paid to Inland Revenue on the due date.  Either put the GST portion of your income received in a separate bank account (and leave it there) or pay it directly to Inland Revenue as soon as you receive it.

Rental Property Ringfencing

It now looks extremely likely that rental property losses will be ringfenced from 1 April 2019.  This means that if your rental property runs at a loss for the year, you won't be able to offset that loss against other income.  Instead, it will be carried forward for offset against future rental profits.  However if you have more than one rental property in the same ownership, you can offset a loss in one against a profit in another.

As large repairs and maintenance can often be the factor which pushes your property into a loss situation, we recommend you carry out any required repairs before 1 April 2019.

Increase in Per Diems

Finally, after 15 years, Inland Revenue have increased the daily Per Diem rate from $60 to $80.  This means that you can now receive up to $80 per day without the requirement to have withholding tax deducted or to keep receipts for the travel costs incurred.  Please note, however that many production companies include the per diems (even when they are less than or equal to the limit) in your earnings information filed with Inland Revenue.  When this is the case, you will need to keep a record of your travel expenses so you can claim an offset against the per diems which must be included as income in your tax return.

Make a Will!

We have become aware that many of you don't have a will!  Please aware that if you die intestate then Section 77 of the Administration Act 1969 determines who gets what.  As this may not be in accordance with your wishes we suggest that you pop along to your lawyer and get them to create a will for you.

Annual Donation

In memory of a dear client who passed away suddenly in June, we are making this year's donation to the Women's Refuge, whom she supported through her work.

 Finally, we hope you all have a wonderful and safe Christmas/New Year break.  We look forward to being of service to everyone in 2018!

 We would like to leave you with some words of wisdom, by Mary Holm, regarding happiness and money which you may wish to consider during the festive season:

·         Buy experiences instead of things.  Things get old, but experiences – concerts and shows, being out in the wilderness, travel, or just spending time with friends – stay shiny in your memory

·         Buy many small pleasures instead of a few big ones

·         Pay now and consume later.  Anticipation is part of happiness. Also, you enjoy it more when you know the bill is already paid

·         Spend on others instead of yourself.

Kind regards

The team at Tyler Price: (Isobel, Abbey, Anne, Bryony, Caroline, Karen, Lichelle, Tina, Virginia and Tilly).

 

 



September 2018 Newsletter

Hello and welcome to our September newsletter. We've had a busy winter with major changes happening in regards to the new AML/CFT legislation that we must comply with along with a significant upgrade to our software.  We will discuss both of these later in the newsletter. In the meantime:

Important Tax Dates

For all of you GST registered clients, we will have reached the end of another GST period on the 30th of September and returns are due for filing and payment on the 29th of October.  Please get your information into us as soon as possible to ensure we can get your return completed on time.

For those of you who are registered for GST on a 6 monthly basis and pay provisional tax, your first 2019 provisional tax installment is also due on the 29th of October.  Tax reminder notices will be going out in the first week of October, so please keep an eye on your inbox.

As always, please let us know well before the 29th if you will not be able to make your payments on time.  The 29th is too late to avoid tax penalties if you want to set up a payment arrangement.

Overseas Based Student Loan Borrowers

If you are an overseas based student loan borrower, your first installment for 2019 is due on the 30th of September.  If you haven't received a reminder from us, please contact us urgently so we can advise how much you need to pay.

Change of email address

If you change your email address, please let us know! It is very important that we have your correct contact details on our database, as important tax reminder notices are emailed to the address that we have on file for you.  If you do not notify us of any updates regarding your email address, important notifications and information may not reach you on time. 

Audit Insurance 

Yes, it's that time of the year again!  At the end of October, audit insurance policies will be up for renewal.  Letters will be going out to all clients shortly, whether or not you participated in the scheme last year so please watch out for these in your inbox.  It is a requirement of our cover to offer it to all clients annually. In order to opt into the scheme, all you need to do is pay the premium and you are automatically covered from that payment date.

For those of you not familiar with the scheme, the insurance covers all of your accounting costs in relation to a review or audit of your tax affairs by Inland Revenue.  The insurance starts from the moment we receive a letter from Inland Revenue stating their intention to review or audit you.

Please contact us if you are unsure whether audit insurance is appropriate for you.  Inland Revenue have recently launched their "Sleep Easy" campaign of targeting hospitality businesses so those of you in this sector should seriously consider taking up this cover.

Anti-Money Laundering & Countering Financing of Terrorism Legislation

Since the last newsletter we've spent significant time on establishing and implementing policies and procedures to ensure that we are now "AML/CFT" ready.  From 1 October, we will be joining banks, financial institutions and lawyers in the AML/CFT regime.  By law we will be required to follow specific procedures to identify and verify new clients or existing clients who alter their circumstances (such as forming a new company or trust) and to question unusual cash or wire transactions (including income) from overseas that we encounter in our work.  So please be prepared to provide us with the required information if requested.  Failure by us to comply with this new legislation could result in very large fines, so we have no option but to do this.  Failure by you to provide us with the required information will result in us having to make a report to the Department of Internal Affairs.  It is our hope and expectation that, for the vast majority of you, there will be no impact on our working relationship, but please be prepared to help us comply if need be.

New Financial Reports

Something else that has been keeping us very busy of late is the installation of our new general ledger software.  Those of you receiving Financial Statements from us over the next few months will notice a subtle change in the look of our reports.  The change in look is subtle but the software behind it is a huge step up in technology from the old general ledger system that we have been using.  The new software will enable us to download your data directly from your Xero or MYOB systems instead of the need to manually journal the information in.  It will also enable us to send reports directly to you without the need to print and scan so will move us closer to the paperless office that we would all like to see.  It's still a work in progress and will be phased in over time. 

As part of this upgrade, MYOB are offering very competitive prices to clients who move their accounting onto MYOB Essentials so please let us know if this is of interest to you. 

MYOB prices (which are subject to change by MYOB) are:

$10 per month for Cashbook,

$27 per month for Cashbook plus Payroll, 

$32 per month for the Standard Package and

$47 per month for the Standard Package Plus Payroll.

 Xero Price Increase

For those of you on the Xero Standard or Premium packages, please note that Xero have increased their prices from 1 October.  Our new discounted prices will be:

$52 per month for the Standard Package (up from $48),

$59 per month for Standard Plus Payroll (up from $56) and

$66 per month for the Premium Package (up from $62).

Xero cashbooks is unaffected by this price increase.

Payday Filing

Those of you employing staff will have been bombarded by Inland Revenue regarding the requirement to start filing your PAYE returns each time you pay staff.  Please note that this is only compulsory from 1 April 2019 and that, to our knowledge, none of the payroll providers (such as Ace, MYOB and Xero) have yet developed their software to enable this to be done.  The providers and Inland Revenue are working closely together to ensure that your software will comply by 1 April, so don't panic yet.  We will keep you informed as this this develops.

Changes to Legislation on Taxation of Rental Property Income

Many of you have voiced concerns to us regarding proposed changes to tax on rental properties.  As yet, nothing has been confirmed, but our expectation is that rental losses will be ringfenced in future (probably from the 2020 tax year onwards).  What this means is that, if your rental property runs at a loss, you won't be able to offset those losses against other income (and for many of you, receive a tax refund).  You WILL still be able to claim a tax deduction for the expenses incurred in the derivation of your rental income, but in a year where those expenses exceed the income, the excess expense will be pushed forward to future years to be utilised when income DOES exceed expenses.  So if you are currently considering significant repairs and maintenance to your rental property, you may wish to consider doing this before the ring-fencing legislation is passed.

Providing your Bank with your IRD Number

One exciting development in the wind is that banks will soon be providing your interest information directly to Inland Revenue each year, so we won't have to ask you for this when we prepare your tax return.  However, in order for this to work correctly, it is essential that you provide your bank with the correct IRD number.  For joint accounts, this means providing both IRD numbers. So please check with your bank to ensure that they have the right information as this will save us time (and you money) when tax return time comes around.

Staff Changes for Tyler Price

There is definitely something in the water here at Tyler Price!  For the third year in a row we are about to bid a temporary farewell to another mother to be.  Lichelle will be leaving us on the 4th of October to have her second baby. We all wish her well!

Bryony, who is still on maternity leave, is planning to be back in the office in February and she will take over the reigns of those clients who have been looked after by Lichelle.  In the meantime, the remaining staff will fill the gap. You have all been allocated to a manager who will take good care of you, so please don't be concerned about this change.  If you are needing any help, please call and you will be directed to the person who will be looking after you.

And lastly, thank you so much to all of you who have recommended us to your friends and colleagues.  Much appreciated!

Thank you for taking the time to read our newsletter.  If you have any questions or need further information, please do not hesitate to pop in to our office or give us a call.  We always look forward to hearing from you.

Regards, the team at Tyler Price:

Isobel, Abbey, Anne, Bryony, Caroline, Karen, Lichelle, Tina, Virginia and Tilly


June 2018 Newsletter

 

Hello and welcome to our June newsletter.  It's been a pretty soggy start to the winter and it's hard to believe that the year is already half over!  We've turned up the heating in our office and, as always, look forward to seeing you when you pop in with your information or to sign off your accounts. 


It's been a fairly quiet quarter in terms of tax changes. The most significant change in the wind is the proposal to ring fence rental losses, which we discussed in the March newsletter.  No updates yet but we will keep you posted.  In the meantime:  


Upcoming tax payments

For those of you who are registered for GST 2 monthly, your GST return for the period ending 31 May is due to be filed with Inland Revenue by 28 June 2018.   If you haven't already done so, please send us your information ASAP so that we can get your return filed on time. Please call if you need any help or if you are unable to get your information to us.


On 28 August 2018, both July GST returns and the first instalment of provisional tax for those of you not registered for GST or registered for GST on a 2 monthly basis will be due.  As always, we will send reminder notices to pay this provisional tax 3 weeks before the due date.  Please ensure that we have your correct email address to which to send these notices.


Those of you registered for GST 6 monthly who pay provisional tax: your first instalment isn't due until 28 October 2018 - so don't panic if you don't receive a notice in August.

      

KiwiSaver Deadline 

Just a reminder that the Government contributes 50 cents for each dollar you contribute to your KiwiSaver account, up to a maximum of $521.43 per year. To receive the full annual Government contribution, you'll need to contribute at least $1,042.86 between 1 July and 30 June each year and meet the eligibility criteria. You'll be able to receive the annual Government contribution from the age of 18 up until you're eligible to make a KiwiSaver retirement withdrawal as long as you live mainly in New Zealand.  If you haven't contributed at least $1,042.86 for the current year, we recommend you make your payment as soon as possible.

    

Student Loans and Working for Families Tax Credits

Please note that if you take out a Student Loan or start receiving Working for Families Tax Credits, we will not be aware of this unless you tell us.  IRD only gives us access to each tax type on an individual basis, upon specific request by us.  So if you don't tell us, we will not request access.  Knowledge of these is essential to us to ensure that we maximise your tax benefits. 


This particularly applies to children receiving distributions from trusts.  So please let us know if this applies to you.


Request for information from banks

New Zealand banks are warning that some customers could have their accounts frozen if they don't respond to requests for information.

As part of their regulatory obligations, banks are required to undertake due diligence on the foreign tax status of their customers.

To fulfil this duty, all banks have recently contacted customers requesting details on their status.  If you've been contacted, it's important that you respond to your bank, regardless of your tax status. If you don't respond, or if your response is incomplete, your bank will be required to freeze or close accounts opened from 1 July 2017 to comply with the law.

IRD Scam Emails

There appears to have been an increase in IRD scam emails being sent to taxpayers and many are getting caught out and being infected by computer viruses .  If you receive an email that appears to be from IRD asking you to click on a link, do not do this! If you believe that the email could be genuine, either contact us or  log into your MyIR and check your status there.


Providing your bank account details to us

Please note that when we ask you for information regarding bank transactions or yearend bank balances we only want to receive bank statements or csv files.  We do not want you to send us your bank logons and passwords as we will not access your bank accounts directly. Although we maintain a high level of security over our IT system, we can't guarantee that the information wont be hacked: compromising your bank security.

  

Anti Money Laundering (AML) Legislation

From 1 October we will be required to adhere to the new AML legislation.  We are currently implementing upgrades to our systems and procedures to ensure that we comply with the legislation.  As part of this, we may be asking you for additional information – for example, proof of identification and proof of address.  Please don't be offended if we do so: The Department of Internal Affairs will be auditing us and imposing fines if we don't follow correct procedure, so we must make sure that our paperwork is in order.


As always, we look forward to assisting you with any queries you may have so please don't hesitate to contact us if you need help.

  

From the team at Tyler Price – Isobel, Abbey, Anne, Bryony, Caroline, Karen, Tina, Virginia and Tilly


March 2018 Newsletter

Hello and welcome to our first newsletter for 2018.


It looks like our long hot summer may be coming to a close.  The dark cold nights that are just around the corner should give you a perfect opportunity to get your 2018 accounts in order ready to send to us so we can get your taxes sorted.  We will be emailing our annual questionnaire to you shortly, so please keep an eye on your inbox for this.


Please note that this newsletter contains information regarding major tax changes which may affect you so please read it to ensure that you are informed of these changes.

   

Important Upcoming Tax Dates  

By now, those of you who have an extension of time should have received your 2017 terminal tax notices. This tax is due on the 7th of April.  Don't forget that if you are sending a cheque, it must be received by the 7th so get it in the post in plenty of time!

We'll also be emailing out the tax notices for the 2018 final provisional tax instalment shortly (payment due on the 7th of May).   Please look out for these in your inbox.

If paying either of these taxes by the due date is not possible, please don't stress!  Get in touch with us as soon as you can so we can either set up a payment arrangement with Inland Revenue or buy your tax from one of our tax pool suppliers.


For those of you who are GST registered and your returns are aligned with a 31st of March balance date, your due date for filing and payment of your March GST return will be the 7th of May.  Note that this is our busiest time of the year so please get your information to us as soon as you can to ensure we can meet the deadline.

   

Additional requirements for 31st March

·         Record your debtors (people who owe you money) as at 31 March 2018.


·         Record your creditors (people you owe money to) as at 31 March 2018.


·         Carry out a stock take, if you carry and sell stock.


·         Keep a copy of your RWT certificates, income protection insurance certificates and evidence of your company or trust's bank balance at 31 March. Scan them directly to us if there is a chance you may lose them!  

School donations  

It's that time of the year again when school fees and donations are being paid.  Don't forget you can claim a 33% rebate on these donations (as well as donations to most charities), so please remember to include these in your receipts if paid by the 31st March 2018.  Note that activity fees and some levies imposed by schools are not claimable so we must have your receipt to ensure we are only claiming the donation part of the payment.

   

Important Tax Changes for Property Investors

    

Bright-line test  

The government recently announced that they are extending the bright-line test from 2 years to 5 years, effective as soon as the change receives royal assent – which could be as soon as 1 April.


The change will affect all residential property (excluding the family home) purchased after the date of the change.  If you have already purchased and have an unconditional agreement in place, then you will still be covered under the old 2 year rule.


Please note that you can only have one family home and that is the one in which you spend most of your time.  Your family bach, any land you own on which a residence could be built and residential rental properties are caught should you buy and sell within 2 years or 5 years moving forward.

   

Rental losses to be ring-fenced


We are also likely to soon see draft legislation on the ring-fencing of rental losses.  Should this become law, investors will no longer be able to offset tax losses from their residential investment properties against their other income to reduce their tax liability. Instead, these tax losses will carry forward to offset against future rental profits.


As this proposed law needs to go through the Tax Policy Process, it is likely to not take effect until 2019 (and may even be phased in over a period of time). However it should be considered if you are contemplating purchasing a rental property.  Please call us if you have any concerns or questions as to how this change may impact on you.

   

Smoke Alarms and Insulation in Rental Properties


All rental properties must have working smoke alarms installed and, from 1 July 2019 must be insulated.  Landlords are required to complete an Insulation Statement with all new tenancy agreements.  We recommend you read the rules on the Tenancy Services website to ensure you are complying with legislation.  

Water Rates


Once again for those of you who own residential rental properties: it has come to our notice that many landlords pass on the full water rates bills for their tenants to pay.  However, under the Residential Tenancies Act, tenants are only required to pay for water usage, not the fixed fees.  There have been a number of cases recently heard by the Tenancy Tribunal and many landlords have been forced to reimburse their tenants for the Wastewater Fixed Charges that they have passed on to their tenants.  So if you are doing this, we suggest you talk to your tenants and come to an agreement before it turns nasty.

   

Time to consider your software options

The start of a new tax year is the perfect time to switch accounting systems if this is on your agenda.  For those of you considering moving onto BankLink, Xero or MYOB Live please get in touch with us as soon as you can to get this in place before 1 April.  

Bank Accounts for Companies

We have noted a few cases where clients are operating through their company but the company doesn't have a bank account!  Please note that your company is a separate legal entity from yourself and must be treated as such.  If all income and expenses pass through personal bank accounts you will have no opportunity to utilize company tax rates and, should the legality of your company be questioned, you may struggle to prove limited liability.  If this applies to you, please open a bank account in the company's name and start treating the company as a separate entity from yourself.   

Minimum Wage Increase

The minimum wage is increasing to $16.50 per hour from 1 April 2017.  Those of you employing staff on the minimum wage will need to factor this increase into your 2019 budgets.     

Anti-Money Laundering Legislation

As previously advised, we will be caught by this new legislation from 1 October 2018.  We are currently in the process of enhancing our systems and documentation to ensure that we will comply.  We will be monitored by the Department of Internal Affairs and the fines for non-compliance are huge.  However, this additional compliance will come at a cost which unfortunately we can not completely absorb.  We have therefore made the difficult decision to increase our Tax Management Fees from the $50 we have charged since 2011 to $80 per tax return.  

Baby News!

We are pleased to report that Bryony's baby arrived at the beginning of January – a little girl called Tessa.  All is well and we look forward to welcoming Bryony back at the end of the year.

And finally,

We are very pleased to advise that Anne Blaiklock will be joining our team on the 4th of April.  Anne is a very experience chartered accountant who has run her own small accounting practice for a number of years.  Anne will be working with us full time so this will be an opportunity for us to rebalance the workload among our accountants which we need to do from time to time.  So please don't be alarmed if your next contact from us is from a different accountant – regardless of who is looking after you, you can be confident that you will continue to receive the same excellent service as always.



The team at Tyler Price would like to wish you all a very happy and relaxing Easter.  As always, we look forward to assisting you with any queries you may have coming up to the end of the financial year, and we are only too happy to be able to help.



From the team at Tyler Price – Isobel, Abbey, Bryony, Caroline, Karen, Lichelle, Tina and Virginia.




December 2017 Newsletter

Hello and welcome to our final newsletter for 2017.   The year has flashed by at an alarming rate as we have settled in to our new premises.  As always, we'd like to take this opportunity to thank you for your continued support and we look forward to seeing you again in 2018. 

In this issue we look at: 

·         Christmas office closure and re-opening dates

·         Important upcoming tax dates

·         Xero Promotion

·         Staff changes

·         Payments to Inland Revenue

·         Anti-Money Laundering Legislation 

 

Christmas Office Closure 

The office will be closing for the Christmas break on Wednesday the 20th December and will be re-opening on Monday the 15th January.  The office@tylerprice.co.nz email will be periodically monitored throughout the closedown period, so if you do need our assistance during this time, please email this address and someone will get back to you as soon as possible.

  Important Tax Dates 

Provisional tax payment notices have been sent out to those of you required to make a payment on the 15th of January 2018PLEASE DO NOT FORGET TO PAY THIS TAX!  If you have any questions regarding this please contact us before the office closes for the Christmas break so we can assist you if need be. 

For those of you who file GST two monthly, your November GST will also be due for payment on the 15th of January 2018. If you are heading away for Christmas, it would be best to get your information to us well before you leave.

 And after that:

 

7 February 2018         Terminal tax due for taxpayers who do not have extension of time (non-complying taxpayers)

 

7 April 2018                Terminal tax due for taxpayers who do have extension of time.     

 

Xero Promotion

For those of you considering moving to Xero: they are currently offering a 50% discount for the next 4 months, so now could be a really good time to make the move.  Please let us know if you are interested in taking up this offer.

 

Staff Changes 

Those of you who are looked after by Bryony will have noticed her expanding stomach over the past few months!  Bryony headed off on maternity leave on the 1st of December and is now patiently awaiting the birth of her third child, due on New Year's Eve.  We look forward to welcoming her back later next year. 

In November Lichelle Schofield joined the team and she will be looking after the majority of Bryony's clients.  Many of you will have already been in contact with Lichelle.  Lichelle comes to us with a broad range of skills and experience and we are delighted to have her on board.

 

Payments to Inland Revenue 

We've noticed that a few of you have a habit of rounding up payments to Inland Revenue to the nearest dollar.  Please do not do this!  Inland Revenue don't write these overpayments off – we have to manually transfer them to other periods or tax types.  This takes time which we must charge you for.

 

Anti-Money Laundering (AML) Legislation 

Those of you who have tried to invest money or open bank accounts in the past couple of years will no doubt have been put through the wringer by the banks – all in the name of AML legislation.  The bad news is that, from 1 October next year, accountants will also be required to carry out additional checks on clients to satisfy ourselves that none of you are laundering money, drug trafficking or doing cash jobs.  The legislation is still being finalised: however, our understanding at this stage is that we will be required to incorporate AML checks into our work and, should we become suspicious that a client is carrying out illegal activities, we will be required to report this to the relevant authority.  We will be under the scrutiny of the Department of Internal Affairs and failure to perform the relevant checks will result in huge fines – so we must comply. Over the next few months we will be updating our procedures to incorporate these checks, including an addendum to our terms of trade and a questionnaire that you will all need to complete.  We apologise in advance for the inconvenience that this will cause, but unfortunately, we have no choice in this matter.

Needless to say, that if any of you are laundering money, drug trafficking or doing cash jobs, this may be a good time to consider ceasing these activities!

 

Annual Donation 

Many of you will remember Karla, who was our receptionist in 2012/2013. Karla was an amazing person with a heart of gold.  She had no kidneys and every second night went home to spend her evening on her dialysis machine.  She couldn't drive and could only go on holiday if she could make arrangements with a nearby hospital to receive dialysis treatment while she was away.  Karla left our team when her husband's workplace moved out west, meaning she had no mode of transport to get to work.

It was with much sadness that we learnt of Karla's death in August this year, aged 35.  Karla always knew that her life would be short: however, we are still finding it difficult to comprehend that someone so young and full of life can now be gone.

In memory of Karla we are splitting this year's annual donation and giving half to the Kidney Foundation and the other half to Radio Lollipop, which was a charity close to Karla's heart and one in which she invested a large portion of her limited spare time.

  

Finally, we hope you all have a wonderful and safe Christmas/New Year break.  We look forward to being of service to everyone in 2018!

Kind regards 

The team at Tyler Price: (Isobel, Bryony, Caroline, Karen, Lichelle, Tina, Abbey, Virginia and Tilly).



 

 

September 2017 Newsletter

Hello and welcome to our September newsletter. The weather has been wet and windy outside but we've been cosy and dry here in our new premises. 

With the election imminent there's been no major tax changes to report on.  We guess we'll just have to watch this space as to what will happen in the future!

 

Important Tax Dates

 For all of you GST registered clients, we will have reached the end of another GST period on the 30th of September and returns are due for filing and payment on the 28th of October.  Please get your information into us as soon as possible to ensure we can get your return completed on time.

For those of you who are registered for GST on a 6 monthly basis and pay provisional tax, your first 2018 provisional tax instalment is also due on the 28th of October.  Tax reminder notices will be going out in the first week of October, so please keep an eye on your inbox. 

As always, please let us know well before the 28th if you will not be able to make your payments on time.  The 28th is too late to avoid tax penalties if you want to set up a payment arrangement.

 

Overseas Based Student Loan Borrowers

If you are an overseas based student loan borrower, your first instalment for 2018  is due on the 30th of September.  If you haven't received a reminder from us, please contact us urgently so we can advise how much you need to pay.


Change of email address

If you change your email address, please let us know about this.  It is very important that we have your correct contact details on our database, as important tax reminder notices are emailed to the address that we have on file for you.  If you do not notify us of any updates regarding your email address, important notifications and information may not reach you on time.


Audit Insurance 

Yes, it's that time of the year again!  At the end of October, audit insurance policies will be up for renewal.  Letters will be going out to all clients shortly, whether or not you participated in the scheme last year so please watch out for these in your inbox.  It is a requirement of our cover to offer it to all clients annually. In order to opt into the scheme, all you need to do is pay the premium and you are automatically covered from that payment date.

 For those of you not familiar with the scheme, the insurance covers all of your accounting costs in relation to a review or audit of your tax affairs by Inland Revenue.  The insurance starts from the moment we receive a letter from Inland Revenue stating their intention to review or audit you. 

We'd like to remind business owners that Inland Revenue audits are on the increase – particularly in the areas of property development and speculation, trades and hospitality.  So for those of you with interests in these areas, we do encourage you to consider this insurance, particularly in light of...


Work Related Vehicles

Those of you driving vehicles owned by your company, you will be aware that you make an annual shareholder contribution for the use of that vehicle.  This shareholder contribution means that Fringe Benefit Tax (FBT) isn't required to be paid on the vehicle.  Where your vehicle is deemed to be a Work Related Vehicle this contribution is not necessary.  In order to be a Work Related Vehicle it must be a truck, ute or station wagon with the back seats permanently bolted down and it must be sign written.  The signwriting must be permanent and prominent. The vehicle must NEVER be used for personal use.

We have been informed that Inland Revenue are currently carrying out checks on sign written vehicles to ensure that they are not being used privately.  They are staking out places such as boat ramps, supermarkets  and school gates.  Work Related Vehicles sighted are being noted and investigated and penalties are being charged where FBT is not being accounted for.

If you have a Work Related Vehicle  which  you are using privately, please let us know so we can make the appropriate shareholder contribution so you do not fall foul of the investigations team


Cash Jobs 

We have also been informed that tradies are being lured to private addresses to carry out jobs for which they are given cash.  Inland Revenue are then turning up at their work premises a few days later to ensure that the cash has been correctly accounted for.  Once again, big penalties for non-compliance. Our simple answer to that is don't do cash jobs.  If people pay you in cash, bank it into your business account immediately and pay the appropriate GST and tax.


Overseas Withholding Tax 

We are aware that many of you have been taking up opportunities to work on various productions overseas.  Please note that many countries deduct withholding tax paid to contractors.  If this is the case we recommend that you contract as individuals - not through your companies.  Although companies can claim a New Zealand tax credit for tax paid overseas, this tax credit does not flow through to the shareholder when a dividend is declared.  So you will ultimately be double taxed if you trade through your company.  If this situation applies to you, please talk to us.


Companies Office Obligations

In addition to filing documents with the Companies Office, it is a legal requirement for every company to keep and maintain certain records.  This includes accounting records, the share register and other company documents. These are all listed on the Companies Office website.  Please ensure that you are adhering to this requirement as non-compliance can result in a $10,000 fine to the director. 

And lastly, thank you so much to all of you who have recommended us to your friends and colleagues.  Much appreciated! 

Thank you for taking the time to read our newsletter.  If you have any questions or need further information, please do not hesitate to pop in to our office or give us a call.  We always look forward to hearing from you.

  

Regards, the team at Tyler Price:

Isobel, Abbey, Bryony, Caroline, Karen, Tina, Virginia and Tilly



June 2017 Newsletter

Hello and welcome to our June newsletter.  It's hard to believe that the year is already half over!  We've turned up the heating in our new office and, as always, look forward to seeing any clients who wish to pop in and see us with your information or regarding any queries you may have. 
 
In this newsletter, we will be focusing new tax changes that you need to be aware of.


Our New Office 

Many of you have been to visit us in our lovely new office and we've been pleased with your positive comments.  Please note that parking is in the driveway and it is wide enough for 2 cars if the first car to arrive parks on one side of the driveway.  We generally try to allow enough time between appointments so that only one car needs to be parked at a time: however, there are times when other clients arrive and need to park, so it would be really great if people can try to leave enough space for another car if they can.


Karen is Back!

We were very pleased to welcome Karen back from maternity leave in April – just in time for our busy GST period.  Karen has settled back into the swing of things – but is only working mornings at the moment.  So, if you need to contact her urgently, please do this before 1pm.


Upcoming tax payments
 
For those of you who are registered for GST 2 monthly, your GST return for the period ending 31 May is due to be filed with Inland Revenue by 28 June 2017.   If you haven't already done so, please send us your information ASAP so that we can get your return filed on time. Please call if you need any help or if you are unable to get your information to us.
 
On 28 August 2017, both July GST returns and the first instalment of provisional tax for those of you not registered for GST or registered for GST on a 2 monthly basis will be due.  As always, we will send reminder notices to pay this provisional tax 3 weeks before the due date.  Please ensure that we have your correct email address to which to send these notices.
 
Those of you registered for GST 6 monthly who pay provisional tax: your first instalment isn't due until 28 October 2017 - so don't panic if you don't receive a notice in August.
 

Bookabach/AirBNB - are you GST registered?

Renting rooms or houses through Bookabach or AirBNB is becoming increasingly popular.
 
However please note that this income is deemed to be commercial rent, subject to GST if either of these situations apply:

  • The entity or person who owns the property is GST registered
  • The Bookabach/AirBNB income, together with other self-employed income exceeds $60,000 per annum. 

Should this income be deemed to be subject to GST, you will not only be required to pay GST on the rent you receive, but you may be required to pay GST on the market value of the property when you either sell it or cease renting it: effectively giving IRD 15% of your non-taxable capital gain.
 
If you are contemplating, or have already started renting rooms or houses on a short-term basis PLEASE GET IN TOUCH WITH US URGENTLY so we can advise you as to the best structure to avoid being caught in the GST net.


New Tax Charges

We are pleased to advise that IRD have finally removed the requirement for us all to have crystal balls when it comes to predicting our income for the year.  From the 1st of April 2017, the following changes to the provisional tax regime have been put into place:

  • Use of Money Interest will now only be charged to taxpayers whose Residual Income Tax (RIT) exceeds $60,000.  Previously all trusts and companies and individuals with RIT exceeding $50,000 were subject to interest.
  • Should you exceed the $60,000 threshold, interest will now only be charged from the final 7 May provisional tax instalment rather than from the first instalment date. 
These changes will give us the ability to retain profits in your company or trading trust without incurring interest charges and will remove the need for taxpayers to pay top-up provisional tax during the year if they believe their income will be higher than the safe-harbour calculation.
Please note however, if you short pay your tax because you believe your income will be less than the safe-harbour value, you will still be penalized.


Withholding Tax - Contractors 
 
Another major change for this year affects those who contract their time.  Until this year, many of you were required to pay withholding tax at the rate determined by "The Schedule".  For those of you whose type of work wasn't covered by "The Schedule", you were unable to have tax deducted at source – forcing you into the provisional tax regime.
 
Now all contractors can have withholding tax deducted at the rate they choose – provided it is at least 10%.  For those of you who struggle to put your tax aside for your provisional tax, this could be your opportunity to switch to withholding tax – so you are not tempted to spend your tax money!  If you would like to do this, speak to the companies to which you contract to get this underway.
 
Another less positive change is that, from 1 July 2017 people contracting through companies to labour hire companies will also now be subject to withholding tax.  Due to the complications arising from this new legislation, we recommend that all of you in this situation apply for a 0% special tax rate so that you are not affected. Please note that this legislation also applies to people who receive income via talent agents. 


As always, we look forward to assisting you with any queries you may have so please don't hesitate to contact us if you need help. 
 
From the team at Tyler Price – Isobel, Abbey, Bryony, Caroline, Karen, Tina, Virginia and Tilly.

March 2017 Newsletter

Hello and welcome to our first newsletter for 2017 – coming from our new premises at 41B Sussex Street! It's been a busy couple of months with both moving and upgrading all our computer equipment but we're now settled and looking forward to the new financial year.
If you haven't yet visited our new office, please be sure to pop in next time you're driving past. Parking is in the driveway right in front of the office.

Please note that this newsletter contains information regarding major tax changes which may affect you so please read this newsletter to ensure that you are informed of these changes.

Important Upcoming Tax Dates

By now, those of you who have an extension of time should have received your 2016 terminal tax notices. Thistax is due on the 7th of April.Don't forget that if you are sending a cheque, it must be received by the 7th so get it in the post in plenty of time!

We'll also be emailing out the tax notices for the 2017 final provisional tax instalment shortly (payment due on the 7thof May). Please make sure you look out for these in your inbox.

If paying either of these taxes by the due date is not possible, please don't stress! Get in touch with us as soon as you can so we can either set up a payment arrangement with Inland Revenue or buy your tax from Tax Management New Zealand.

For those of you who are GST registered and your returns are aligned with a 31st of March balance date, your due date for filing and payment will be the 7th of May. Note that this is our busiest time of the year so please get your information to us as soon as you can to ensure we can meet the deadline.

Additional requirements for 31st March

  • Record your debtors (people who owe you money) as at 31 March 2017.
  • Record your creditors (people you owe money to) as at 31 March 2017.
  • Carry out a stock take, if you carry and sell stock. Stock needs to be valued at the lesser of cost or market value so take this opportunity to review the appropriate valuation for the goods you are holding. You should make a note of all the stock items and the cost of each (GST exclusive). The total is counted as your closing stock. The stocktake is important too for performance monitoring and income tax purposes. An inaccurate stocktake will result in an incorrect cost of sales figure, which impacts on the perceived value of your business and on the tax you pay. So the closer it is done to balance date, the better!

School donations

It's that time of the year again when school fees and donations are being paid. Don't forget you can claim a 33% rebate on these donations (as well as donations to most charities), so please remember to include these in your receipts if paid by the 31st March 2017. Note that activity fees and some levies imposed by schools are not claimable so we must have your receipt to ensure we are only claiming the donation part of the payment.

Importation of goods

People who are importing goods MUST keep all invoices from freight forwarding companies. These invoices provide the only breakdown of the GST, duty and freight on these goods, and without them you may be missing out on significant GST claims. It would be appreciated if you could please send this information to us as soon as you receive it, in case it gets misplaced or overlooked. For those of you completing your own GST returns using MYOB or Xero, there are specific ways to deal with customs GST which is not particularly obvious, so please contact us in this instance to ensure that you are claiming it correctly.

ACC Cover Plus Extra

The start of the new financial year is the ideal time to review your ACC cover. Our view is that all self-employed contractors should be on Cover Plus Extra NOT the standard Cover Plus that most of you are on. So please review your policy and make the switch if you haven't already. It costs no more than the standard cover and the main advantage of it is that it provides guaranteed cover – you don't have to prove your income at the time of your accident, which can be a real issue for those who receive fluctuating income from a variety of sources.

For those of you who also have Income Protection Insurance, it's likely that you are doubling up on your cover and paying considerably more than you need to. Cover Plus Extra gives you the ability to reduce your ACC premiums down to a minimum and rely on your Income Protection policy to cover you if you have an accident. If you are unsure as to whether your Income Protection policy covers accidents, we recommend that you talk to your broker or insurance company. If you need assistance here, we can put you in touch with insurance brokers who would be happy to help you.

Withholding Tax Changes

The first of April sees a couple of major changes to the Withholding Tax Regime. For our sole trader, film industry clients and builders, there will be no changes. However, the rest of you please note:

  • Sole traders in industries not included in the compulsory withholding tax regime can now elect to have withholding tax deducted from their pay. This will allow you to pay tax as you earn and will remove/reduce the requirement to pay provisional tax moving forward. You can elect to have tax deducted at any rate above 10%.
  • People contracting through companies to Labour Hire Companies/Temping Agencies will now be required to pay 20% withholding tax on their income. The company can apply for a 0% special tax rate – however, we are uncertain as to how successful you are likely to be. Please let us know if you would like our assistance here.

Other Pending Changes

We understand that IRD are considering changes to how we claim for home office and how company vehicles will be treated moving forward. This legislation, if it does come in, will be effective almost immediately, so we are keeping a close eye on this and will let you know if any of these changes are likely to affect you.

Budgeting advice

Many you have big mortgages which you are keen to pay off as quickly as possible and have approached us for help in achieving this. We have tools available to assist you with this, so please call or email us if you think that we can be of assistance.

Beware if you rent your house on Bookabach or AirBNB

Most house and contents insurance policies stipulate that your house is only used for private purposes. Renting your house, or individual rooms within your house, may breach the conditions of your insurance policy, giving the insurance company a reason not to pay out, should you make a claim. We recommend that you contact your insurance company if you are in this situation to ensure that you have the appropriate cover.
The same may apply if you work from home and have contractors and/or clients frequently visiting. Once again, we recommend you speak to your insurers if this is the case.

Companies Office Requirements

We have been informed that the Companies Office are continuing to spontaneously visit registered offices to check whether their requirements with regards to record keeping are being adhered to. Non-adherence is being met with hefty fines. We have recently invested in software which, for a small annual fee will ensure that all requirements are met. We will be offering this service to all our companies over the next couple of months. However, in the meantime, if you do hear the Companies Office with regards to checking your documentation, please urgently let us know as we should be able to assist you.

And finally,

We are very pleased to advise that Karen is returning from maternity leave on the 3rd of April – just in time for GST! As she will be initially returning on a part-time basis we will be taking the opportunity to re-balance the workloads of all the accountants through our very busy period, so please don't be alarmed if you hear from a different accountant than you normally deal with.

The team at Tyler Price would like to wish you all a very happy and relaxing Easter. As always, we look forward to assisting you with any queries you may have coming up to the end of the financial year, and we are only too happy to be able to help.

From the team at Tyler Price – Isobel, Abbey, Bryony, Caroline, Karen, Virginia and Tilly.

 


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41B Sussex Street
Grey Lynn
Auckland 1021 
New Zealand
PO Box 8034
Symonds St
Auckland 1150
New Zealand