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.
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
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