December 2016 Newsletter

Hello and welcome to our final newsletter for 2016.   Christmas is right around the corner and once again we'd like to take this opportunity to thank you for your continued support.  We're certainly looking forward to working with you in 2017.
 
Once again, we'd like to say a special 'thank you' to all of our awesome clients who got their October GST information to us in plenty of time for filing.  It was a great help to us, as October is always an extremely busy time for us and the earlier we receive your information, the easier it is for us. 
 
In this issue we look at:

  • Christmas office closure and re-opening dates
  • Important upcoming tax dates
  • Inland Revenue GST refunds from previous years
  • Companies Office obligations
  • Tyler Price is moving in 2017!
  • Baby news!


Christmas Office Closure

The office will be closing for the Christmas break on Thursday 22nd December 2016 and will be re-opening on Monday 9th January 2017 with a skeleton staff available until the 16th of January, when everyone is back on deck.  If you need to contact us during that first week of January, please email office@tylerprice.co.nz and we will endeavour to respond as quickly as we can.

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 2017PLEASE 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 pay GST two monthly, your November GST will also be due for payment on the 15th of January 2017. 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 2017   Terminal tax due for taxpayers who do not have extension of time (non-complying taxpayers)
 
7 April 2017    Terminal tax due for taxpayers who do have extension of time.

GST Refunds from IRD

Inland Revenue have been sending out letters to people advising that they were over-charged for penalties and interest on GST returns filed between 2001 and 2011.  Over-charged amounts are being transferred to January 2017 GST and then refunded to the tax payers.  IRD are now in the process of sending out refund cheques to anybody who may fall into this category.  If we receive cheques at our office for any of our clients, we will be sure to let you know or forward these directly to you.

Companies Office Obligations
 
We realise we have mentioned this in our last newsletter, but this matter has now become urgent.  In addition to filing documents with the Companies Office, it is a legal requirement for every company to keep and maintain certain records.  The Companies Act 1993 requires a company to have a registered office in New Zealand.   The registered office address is where company records are kept and where certain records may be viewed by shareholders or by the public.  Therefore the registered office address must be a physical address.
 
The company and accounting records required to be kept under sections 189 and 194 of the Companies Act 1993 should include, but are not limited to, the following information and documents.
 
(a)   The share register;
(b)   Minutes of all meetings and resolutions of shareholders;
(c)   Minutes of all meetings and resolutions of directors and directors' committees;
(d)   Copies of all written communications to shareholders;
(e)   Copies of financial statements required by the Act or any other enactment;
(f)   Accounting records which correctly record the company's transactions and, if
       required, enable the company to ensure:
      (i) its financial statements comply with generally accepted accounting practice;
      (ii)  that the financial statements can be readily and properly audited.
 
The records must be kept either in written form or in a manner that allows them to be easily accessible and convertible into written form. 
 
Last week, one of our clients was visited at their office site by two representatives from the Companies Office. This was an impromptu visit where the client had no prior notification that this was going to happen.  It was determined at the site visit that the company was not holding the required books and records at the premises, and consequently did not comply with section 189 of the Act.  If a company does not comply within a 10 day time frame, a penalty is charged. This can be an amount up to $10,000! 
 
 It is MOST IMPORTANT that those of you with companies comply with these requirements to avoid any penalty.
 
We are aware that a number of our clients have the Tyler Price Accountants' street address showing as their registered office address on the Companies Office website.  If the Tyler Price address is shown as being the registered office, we are then legally required to have the records mentioned above kept at our office.   We are currently writing to these clients to enquire if they would like to keep the Tyler Price address as their registered office address.  If clients confirm they would like this to be the case, we will undertake this responsibility; however there will be an annual charge of $100 plus GST for maintaining this service as we must ensure that we keep all documents up to date in our files.
 
And now for some REALLY BIG news.......

Tyler Price is on the move!

Yes, we will be on the move in 2017!  New permanent premises have been purchased just around the corner from our current office, so it's just a hop, skip and a jump away from where we are now!  Our new address will be 41 Sussex Street, Grey Lynn (yes, we were very clever in keeping the street number the same so that you don't forget it).  Our official move-in date hasn't been finalised yet, so until then we will still be at our current location of 41b Crummer Road.  We will be sending out a notification once the date has been finalised and we look forward to you popping in to see us in our new premises once the move has taken place.
 
If you, or anyone you know may be interested in leasing our fabulous office at 41b Crummer Road, please let us know and we can put you or them in touch with our lovely landlord.

Baby News!

Yes, our baby has finally arrived!  Little Emily was born on the 16th of October, weighing 3.55 kilograms.  All well with Mum and baby and we look forward to welcoming Karen back on a part time basis in April.

Annual Donation

As always, in lieu of Christmas cards/gifts we like to give a donation to a worthwhile cause at this time of the year.  This year we will be giving to the SPCA.
 

Finally, we hope you all have a wonderful and safe Christmas/New Year break.  We look forward to being of service to everyone in 2017!
 
Kind regards
 
The team at Tyler Price: (Isobel, Caroline, Samantha, Bryony, Karen, Linda, Abbey and Virginia)

September 2016 Newsletter

Hello and welcome to our September newsletter. It has certainly been a busy 3 months since our last one, including a staff member who is rapidly growing in size (and it's not due to the consumption of too much junk food), as well as a rather unfortunate and soggy disaster: but more about this further down.

Staff Changes

For those of you who don't already know, Karen is expecting a baby in October and will be leaving at the end of this month to start her maternity leave. Bryony, who started with us in July, will be taking over work for Karen's clients and will still be offering the great level of service that Karen has always maintained.  Karen will be returning to work on a part-time basis in April next year.  We certainly wish her all the very best as she welcomes this new addition to her family.
 
We are also delighted to advise that we are adding a bookkeeper to our staff. Sue Burns, whom we have known for some time in her bookkeeping capacity, will be starting with us at the beginning of October, primarily to assist the accountants through our busy October GST period.  However as many of you have indicated that you would be interested in moving your bookkeeping function to Tyler Price to streamline your accounts preparation, we will also be trialling Sue in this role over the coming months.  So if you would like to discuss the opportunity of utilising this service, please let us know.

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 2017 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.

Old Bank Account Is Closing

We switched our banking from ASB to Westpac two years ago.  However, as a number of you have continued to pay our fees into the old ASB account we have kept it open for your convenience. However as we are paying high fees for the convenience of just a handful of you, we have made the decision to close this account for good.  If you have our bank account details saved in your payees or pay us monthly by automatic payment please take the time to check the bank account details to ensure the payments are going to our Westpac account.  The Westpac bank account number is shown on all invoices that you will receive.

New Terms of Engagement
 
By now you should have received our updated Terms of Engagement in your inbox.  For your information, our terms of trade have not significantly changed; the reason for this document being updated is simply because our governing body has changed from being NZICA (NZ Institute of Chartered Accountants) to CAANZ (Chartered Accountancy Australia and New Zealand).  We were also not satisfied with the way the previous terms were set out and we feel this new document sets out things in a more logical and easy-to-understand way for clients.  All that is required for you to do is to please read the terms, review the entities listed and, if you happy with them, to sign the last page in the space provided and return this to us, either by hand, email or post.  
 
Thank you to all our clients who have already signed these and sent them back to us.  If you haven't already done so, you will be receiving a reminder notice very shortly.   Which brings us to our next very important point….

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.  In previous years, these letters were posted, however moving forward they will be emailed to clients, 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.

Insurance Policies

As many of you are aware, the Tyler Price office was hit by a flash flood in June. Thankfully, the main damage only extended to the carpet, but this still posed a significant problem to the smooth running of the business, and as such the office was closed for 4 days while the massive clean-up was undertaken.  It is for this reason that we are urging all of our clients to please review your insurance cover and to make sure that policy triggers are understood fully, and that you are aware who (landlord, tenant and body corporate) is responsible for insuring the various parts of the property. If ever there was a document you need to read very carefully, it's your insurance policy!

We would also like to make mention of business interruption insurance which is a type of insurance that covers the loss of income that a business suffers after a disaster.  The income loss covered may be due to disaster-related closing of the business or due to the rebuilding process.  Interruption insurance compensates you for lost income if your business has to close temporarily, or vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire or flood. This type of insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred.

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.  Below is a link that describes exactly which company and financial records are required to be kept at a company's registered office address. For those of our clients who own companies, please take the time to read the information in this link:

https://www.business.govt.nz/companies/learn-about/compliance-requirements/records-checklist.pdf

We are aware that a number of our clients have the Tyler Price Accountants' street address showing as their registered office address on the Companies Office website.  If the Tyler Price address is shown as being the registered office, we are then legally required to have the records listed in the link above kept at our office.   We will shortly be writing to these clients to enquire if they would like to keep the Tyler Price address as their registered office address.  If clients confirm they would like this to be the case, we will undertake this responsibility; however there will be an annual charge for maintaining this service as we must ensure that we keep all documents up to date in our files.  We will inform clients of these charges when they are contacted in the very near future.

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, Bryony, Caroline, Karen, Linda and Sam

June 2016 Newsletter

Hello and welcome to our June newsletter.  It's hard to believe that half the year has already gone!  We've turned up the heating in the office and, as always, look forward to seeing any clients who wish to pop in and see us with your information or queries you may have.  

In this newsletter we will be focusing on two big changes happening here at Tyler Price: our staff and our Portal.


New Staff

A very big thank you to all of you who have been recommending us to your family and friends.  In April/May we experienced an unprecedented surge in new clients joining us.  As a result, we have two new accountants joining our team:

Sarah O'Connell, a chartered accountant with over 7 years of business advisory services experience has already started with us. Sarah will be working 3 days per week.

Bryony Matthews, also a chartered accountant with 7 years' experience, will be starting with us at the end of July, initially working 2 days per week but extending her hours later in the year.

We will be taking this opportunity to re-balance the workloads among all of our accountants.  As your businesses grow or shrink, so does the work that we do for you – and from time to time we need to move some of you from your existing accountant to another accountant that has more capacity to look after you.  Please don't be concerned if you find yourself dealing with somebody new moving forward, as all of our lovely accountants are qualified and experienced and you will continue to receive the wonderful service that you have come to expect.


MYOB Portal

By now most of you will have received invitations to join our MYOB Portal.  Please take the time to not only accept the invitation, but to watch the brief video which explains what it is all about.

The MYOB Portal allows us to send a document to a client for digital signature, which is now legally binding. This eliminates the time needed to shuttle physical documents between us.

Another great benefit is that you can access the Portal (and therefore documents and tasks) wherever you happen to be, by using a smartphone or tablet. This will save you time and money as you won't have to contact us to send you the relevant information. It is also completely secure, which sadly, emails are increasingly not!

As each Portal must be set up individually, this exercise is taking a considerable amount of time.  So if you haven't received your invitation yet and your client code is towards the end of the alphabet, we haven't got to you yet!  Just keep an eye open for our invitation over the next couple of weeks.  If you have already received the invitation and have ignored it, please retrieve it and action it accordingly.

Once you have accepted the invitation, the Portal will provide a secure entry point for you to view, download and upload your financial information without the need to email files.  Information can only be viewed by logging in with the password set up when the invitation is accepted. For those of you who would like access to be given to other contributors, such as your PA's or bookkeepers, please be aware that those people will be able to view all documents in the Portal.  In these cases, we can set you up with an additional Portal with restricted access.  Please let us know if this is of interest to you.

Note that we will only be storing documents in the Portal moving forward – unless you specifically request us to up-load certain documents for your retrieval.  So initially there won't be anything in the Portal for you to view – but as we complete work for you, documents will be stored there.


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 2016.   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 2016, 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 2016 - so don't panic if you don't receive a notice in August.


Renting out your house or spare room?
 
We've noticed that many of you are now renting houses and rooms out through Bookabach and AirBNB.  Please be aware that this income may be taxable to you. If this is the case, then you will be able to claim certain expenses against this income.  Please give us a call if you have started, or are contemplating this, so we can advise you as to your potential tax liabilities and the records you will need to keep.


Thank you for taking the time to read our newsletter.  Please don't hesitate to contact us if you have any questions regarding the topics in this issue.

 

 

 

March 2016 Newsletter

 

Hello and welcome to our first newsletter for 2016.  It's suddenly starting to feel like autumn with a slight chill in the air in the mornings. With Easter coming up, we're sure everyone is looking forward to an extra-long weekend to be able to get through all those Easter eggs and hot cross buns!

Some of you may have noticed at the beginning of this month that our phone system was not working properly.  We do apologise to everyone who had trouble reaching us, however it was out of our control due to a serious technical issue, which thankfully has now been resolved.  We'd like to thank you for your patience during this period.

Important Upcoming Tax Dates

By now, those of our clients who have an extension of time should have received your 2015 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 2016 final provisional tax instalment shortly (payment due on the 7th of 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: if you file your GST either two monthly or six monthly 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 2016.
  • Record your creditors (people you owe money to) as at 31 March 2016.
  • 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!


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.

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 2016. 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.

Xero Fees

If you are looking at using Xero, there is an added incentive to join this month, with fees being discounted by 50% for four months if you sign up by 31st March.

Audit Insurance

At the end of last year you would have received a letter regarding participation in Audit Shield insurance. We were pleased to see the number of people taking up this offer to protect themselves against the cost of future audits or risk reviews. We also realise that many of you don't think you need audit insurance. However, we have recently been through this experience with one of our "low-risk" clients and, unfortunately, it's proven to be rather an expensive exercise for them. In this instance, the audit appears to have been triggered by a blanket review of contractors to a particular production company and thus completely outside our control.  Happily we were able to satisfy Inland Revenue that our client is compliant and thus he is not facing any negative tax consequences. However, the considerable amount of time taken does cost!

For those of you who don't have audit insurance but would like to take this up, please contact us. From the 1st March 2016 the premium has now been pro-rated and is calculated at a slightly lesser rate than a full year's coverage.

Other points of interest....

If you are looking for any kind of financial, insurance or mortgage advice, we are able to offer assistance in these areas, or we can certainly put you on to the right people to talk to. Don't just take the word of "the man in the pub"; seek correct advice before you take action, as it is always going to cost you less to set your affairs up correctly than to unwind mistakes later.

Finally, 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.



December 2015 Newsletter

 

Hello and welcome to our final newsletter for 2015.   As Christmas looms, we'd like to take this opportunity to thank you for your continued support and we certainly look forward to working with you in 2016.   We know it has been a busy year for many of our clients and we're sure you're all looking forward to a well-deserved break.   We'd like to take this opportunity to thank those of you who have referred our services to friends and acquaintances, and to let you know that we certainly do appreciate this. 
 
We'd also like to say a special "thank you" to all of our awesome clients who got their October GST information to us in plenty of time for filing.  It was a great help to us, as October is always an extremely busy time for us!

In this issue we look at:

  • Christmas office closure
  • Important upcoming tax dates
  • Paying KiwiSaver if you're self-employed
  • Per Diems
  • Buying and selling of properties


Christmas Office Closure
 
The office will be closing for the Christmas break on Friday 18th December; however there will be a skeleton staff available if you need to get hold of us urgently in the week leading up to Christmas.  If this is the case, please email office@tylerprice.co.nz and we will endeavour to respond as quickly as we can.
 
The office will be re-opening on Tuesday 5th January 2016, again with a skeleton staff available until the 11th of January, when everyone is back on deck.  Once again, if you need to contact us during that first week of January, please email the office address above.
 
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 2016.  PLEASE DO NOT FORGET THEM!  If you have any questions regarding these, please contact us before the office closes so we can assist you.
 
For those of you who pay GST two monthly, this will also be due for payment on the 15th of January.   If you are heading away for Christmas, best to get your information to us well before you leave, so you'll know how much spending money you have available for your holiday!

And after that:
 
7 February 2016          Terminal tax due for taxpayers who do not have extension of time (non- complying taxpayers)
 
7 April 2016                 Terminal tax due for taxpayers who do have extension of time.
 
 
Paying KiwiSaver if you're self employed
 
KiwiSaver is very flexible if you're self-employed and you can still enjoy all of the benefits except the employer contributions. If you are self-employed, you're not required to contribute a set percentage of your pay.  Instead you can agree your contribution level with your KiwiSaver provider.  Some providers may have minimum contribution requirements.  You can either make lump sum payments when you choose, or set up regular payments.

Per Diems
 
Many of the film production companies are including per diems in the summary of earnings sent to Inland Revenue.  This means that they will be subject to tax. So if you are receiving per diems, keep a record of the corresponding travel expenses so we can claim them against the income.
 
Buying and Selling of Properties
 
As you will all be aware, there's been a number of changes in relation to the buying and selling of property.  Most of the publicity has been centred on the capital gains tax that you will have to pay if you sell a property within 2 years of purchase.  A few other things to note:

  • Capital gains tax will not apply if you sell a property which has been your main residence for the majority of the period owned.  If you have both lived in the property and rented it out, capital gains tax will apply if it was rented out for longer than you resided in it and you sell it within two years of purchasing it.
  • For capital gains purposes, you cannot have two main residences – so your bach is not exempt from capital gains tax if sold within 2 years of purchase.
  • Transferring your property between yourself and your trust or company will start the 2 year clock ticking.  So be very careful when choosing the entity that you wish to own your property under.
  • A property owned by a family trust will only be exempt from capital gains tax if at least one of the settlors of the trust is one of the residents of it, and that settlor doesn't own another "main residence". 
  • When buying or selling a property, the purchaser and vendor must provide their IRD number on the sale and purchase agreement.  We are aware that many family trusts don't currently have IRD numbers (as there has never been a requirement to have an IRD number if the trust has not been earning income). To save a bit of stress, if you suddenly decide to buy or sell property, we recommend that all trusts apply for IRD numbers as soon as possible.  We are happy to help you with this, so give us a call if this applies to you.

 
Have you got a will?
 
We are often staggered to discover that many of you have not made provisions for the unlikely event of your demise.  With many of us heading off on holiday breaks, it's probably a good time to make or update our wills to ensure that our wishes are followed when we are no longer around.  This is particularly important for those of you running businesses who need a succession plan.
 
Annual Donation
 
At Tyler Price, we are always keen to support our clients where we can!  In February 2016 one of our clients will be driving a tractor from New Plymouth to Auckland to raise funds for Hospice New Zealand.  Such effort must be rewarded, so this year, in lieu of Christmas cards, we'll be making our donation to Hospice via the Tractor Trek appeal. Here's the link if you would also like to support this very worthy cause:   www.tractortrek.org.nz
 
 
Finally, all of the team at Tyler Price would like to wish everyone a very safe and happy Christmas, and we look forward to assisting you in the New Year.

 

September 2015 Newsletter

                     

Hello and welcome to our September newsletter.  Spring has finally sprung, although it is certainly off to a soggy start!  With daylight saving taking effect this month, we're sure everyone is looking forward to the days becoming lighter and longer. The countdown to Christmas has also begun with only 3 months to go! 
 
We'd like to remind all of our clients that we always look forward to hearing from you if you have any queries at all and we are only too happy to help in any way we can.
 
 
Tax Dates
 
For all of you GST registered clients: we've reached the end of the GST period and returns are due for filing 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 2016 provisional tax instalment is also due on the 28th of October.  Tax reminder notices will be going out on the 7th 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 set up a payment arrangement.
 
 
Tax Pooling
 
For those of you unable to pay your provisional tax on time, tax pooling is a very viable option. 
 
Tax poolers, such as Tax Management New Zealand, pay large amounts of tax to Inland Revenue on each tax payment date and will sell you some of that tax at a later date for a very reasonable rate of interest (currently about 5.5%).

Once purchased, the tax pooler then transfers the tax from their tax pool account to your tax account on the due date so you don't incur any penalties or IRD interest. With IRD's interest rate currently over 9% and penalties of 5% after one week and an additional 1% each month thereafter, this method is preferable to paying late or setting up a payment arrangement with Inland Revenue.
 
So before taking matters into your own hands and making arrangements with Inland Revenue, please contact us to see if tax pooling is an option for you. 
 
Please note that tax pooling cannot currently be used for GST payments, so always ensure you pay your GST first.
 
 
Audit Insurance
 
At the end of October, audit insurance policies will be up for renewal again.  Letters will be going out to all clients during the month, whether or not you were in scheme last year. 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 had our first audit ever this year – unfortunately for a client who didn't choose to take the insurance. With resulting fees in excess of $2,000 it's been a costly lesson as to the risk you take in not insuring yourself.  This audit was actually triggered as a result of an audit on our client's employer – so completely outside our control.
 
Inland Revenue audits are on the increase – particularly in the following areas: 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.
 
 
Please come and see us!
 
We've recently noticed an increase in clients asking us to email or post year end accounts out, rather than coming in for an annual meeting.  We absolutely understand that people are busy and that coming to see us takes up precious time.  However, it is in these meetings that we can often discover plans and changes in your lives which may have a major impact on your tax or working for families entitlements.  Often these are facts that may not occur to you to mention in emails, but could enable us to save you money or tax manage your affairs to prevent you from a big tax bill!  We only ask for half an hour of your time, once a year, so please resist the urge to communicate only email and pop in for a visit.
 
 
And following on from this…
 
If you're thinking about setting up another business or changing your business structure, please talk to us first.  It's far cheaper to get it right in the first instance, rather than having us fix it later. 
 
Also, if your spouse or business partner uses another accountant to us, please make sure we know about this and that all relevant information is passed to us each year end.  We've had a couple of recent cases of needing to refile old tax returns to include income from other sources.  The resulting tax is subject to interest and penalties so can be costly.
 
 
Fees paid through our trust account
 
Almost all of you receiving tax refunds this year have taken advantage of our trust account to receive your refunds.  We've had great feedback regarding the speed in which you receive the refunds (because we are cutting out NZ Post and the need to go to the bank to deposit the cheque), and the fact that your fee is deducted off the refund so you don't have to pay us yourselves. 
 
For those of you completing your own GST returns don't forget to include your accounting fee in your GST return! Even though you didn't physically make the payment, it was still made and you can claim the GST.
 
For those of you paying us directly, please note that our terms of trade are the 20th of the month following the invoice date and we would appreciate adherence to these terms as we also have bills to pay.  Regrettably there are a few clients who continually pay late.  In accordance with our terms of trade we have the right to charge interest.  We haven't done this in the past but have made the decision to do this from 1 October.
 
 
IRD's mileage rate decreases to reflect reduced vehicle running costs
 
The Commissioner of Inland Revenue has reviewed the mileage rate for people whose business travel is 5,000 kilometres or less in an income year. This review has resulted in the mileage rate being reduced from 77 cents to 74 cents per kilometre for both petrol and diesel fuel vehicles. 
 
The Commissioner does not intend to amend tax returns for taxpayers who have already filed their 2015 returns using the 2014 mileage rate. Taxpayers can choose to use the Commissioner's mileage rate or use actual costs. Sufficient records need to be kept to support actual costs claimed – including a log book covering a period of no less than 3 months taken within the last 3 years.
 
Employers can choose to use the 2015 vehicle mileage rate as a reasonable estimate of costs when they reimburse employees for the use of their private vehicle for business related travel after 1st April 2015.  Employers can also choose to use an alternative estimate from a reputable source such as the NZ Automobile Association.
 
The mileage rate does not apply to motorcycles, hybrid and/or electric motor vehicles. If you use these forms of transport for business purposes, you will need to calculate your actual expenditure, or in the situation of an employer reimbursement, the employer may make a reasonable estimate of the employee's costs.
 
 
Timesheets

If your business requires the use of timesheets to be filled out by employees, we have had 'Get Harvest'  www.getharvest.com recommended to us as being an excellent choice.
 
 
ACC information
 
For those of you who have opted for CoverPlus Extra policies, ACC has informed us that any unpaid policies will be cancelled, and not pursued through debt collection.   CoverPlus Extra policies are a product of choice, and therefore follow a collection process distinct from ACC's standard product:
                         
  • Payment is due 30 days from date of invoice.
  • 44 days from date of invoice (14 days past due) – a reminder is sent.
  • 60 days from date of invoice (30 days past due) – the policy may be cancelled and the client will revert to standard cover.

 
Also note that if you are on the standard ACC CoverPlus and have income protection insurance with accident cover, you are probably doubling up on your cover!  Please either speak to us or to your insurance broker about moving on to CoverPlus Extra to reduce those costs.
 
 
An important update from Xero about keeping safe online
 
A phishing scam is when malicious emails target customers by pretending to be from a legitimate company, such as Xero.  They're not targeting the company websites, but rather your login and access details. 
 
Xero are aware of a phishing scam that's targeting their customers. Xero has not been compromised in any way, and your important data is still safe - your security is paramount.  Since being made aware of these emails they've been working with their phishing protection service to analyse the phishing campaign and take down the websites used.
 
Recent phishing emails (emails that did not come from Xero) had subject lines such as:
 
Subject: Credit Note CN-87151 from ...
Subject: ACH Approval Letter
Subject: Invoice INV-...
 
Emails like this contain malicious content such as viruses.  If you've received one, don't open it - and if you do open it, don't click any links or attachments.  Please delete the email.  If you're ever concerned you've received a phishing email or one that pretends to come from Xero, please forward it directly to: phishing@xero.com
 
 
And on a better note…

If you are a current Xero subscriber, we have the opportunity of passing on a group discount of 10%.  If you are interested in this please contact our office. Note that Xero prices are increasing from 1 December (the standard package from $50 to $55 per month) making this discount even more worthwhile!
 
For those of you using MYOB Essentials, you just need to let MYOB know that you are a client of ours and they will automatically give you a 5% discount.  Less of a discount than Xero, but at a discounted price $20 per month for the almost equivalent product to Xero, this represents fantastic value!
 

New Post

June 2015 Newsletter

It's hard to believe that we are already halfway through 2015! Everything is ticking along smoothly here at Tyler Price and we are keeping the office nice and warm for when you pop in to see us with your information or queries.

A big thank you to clients who have recommended our services to friends and colleagues, we appreciate your support. You can also direct people to our website for information on our services and to keep regularly updated.


Tyler Price Questionnaire available online

Just a reminder you can now access the Tyler Price client questionnaire on our website. We need this to be signed and sent to us as authority for us to complete your work. All you need to do is download, sign and scan the form from this link:http://www.tylerprice.co.nz/our_services/questionnaire,


Upcoming tax payments

By now you should have filed and paid your May GST if you are registered on a monthly or 2 monthly basis. If you are having any problems with this, please let us know if we can assist.

The July GST will be due on the 28thof August, along with the first provisional tax instalment for all provisional tax payers who are either not registered for GST, or are registered monthly or 2 monthly.
We'll be sending tax notices out in early August, so watch for those popping into your inboxes.

If you have no tax to pay, you won't get an email from us which brings us to our next important point…


Have you changed your email?

In order to save some trees, we are sending most of our correspondence to clients via email. If your email or any other contact details change, please let us know. We don't want you to miss any important reminders!


Claiming Expenses

We've recently taken on some new clients who have been filing tax returns through the on-line tax agents or "the man in the mall". Please note that these agent's services are aimed at salaried tax payers who overpay their PAYE. As such, they do not claim expenses in their client's tax returns.

Unfortunately they do not appear to be communicating the limitation of their services and are filing for contractors who pay withholding tax and receiving considerably smaller refunds than if expenses were claimed. We have been busy re-filing previous year's tax returns on behalf of these people and claiming the expenses – but IRD imposed times bars are preventing us from going back more than 4 years. If you have contractor friends or colleagues using the services of these agents, please make them aware that they are potentially missing out on refunds.

For information on the types of expenses you can claim visit our websitehttp://www.tylerprice.co.nz/resources/claiming_expensesor give us a call on 09 360 8425.


GST – Inland Revenue on the prowl

We have noticed that Inland Revenue are now focussing on taxpayers who are just starting to exceed the GST threshold of $60,000 p.a. Whereas, in the past we were able to pick it up in the course of our work and simply register moving forward, we are now finding that Inland Revenue are forcing taxpayers to go back and retrospectively register. The risk here is the potential lost income if you can't go back and claim the GST from your customer, and the late payment penalties imposed on that GST.

If you aren't registered for GST but suspect that you should be, please give us a call to discuss.

Please note the rules:

You must register for GST if you carry out a taxable activity and if your turnover:
was over $60,000 for the last 12 months, or
is expected to go over $60,000 for the next 12 months
(This equates to $5,000 per month. If your turnover is $5,000 per month and you expect to maintain that level all year, you'll need to register for GST.), or
was less than $60,000, but you include GST in your prices, for example taxi drivers who have included 15% in their taxi fares.


And other areas of focus

You will have heard in the media that the government is putting more funding into Inland Revenue to identify and tax property traders and speculators. With no end in sight to the escalating Auckland market, they believe that there are considerable numbers of people buying properties solely with the purpose of flicking them at a profit, and as such, want their slice of the pie.

Please be aware that Inland Revenue know when properties are bought and sold. They have sub-dividable properties tagged and they know which taxpayers have a history of buying and selling properties in short periods of time. If you are considering getting into property trading, please be aware that the profits will be taxable, so talk to us first.

However, for those of you that have recently bought rental properties and are concerned about being taxed if you sell within 2 years, please note that this only applies to rental properties purchased after 1 October 2015.

The other big area of focus at the moment is the "hidden economy" – cash jobs. Our recommendation is simple – don't do it!


Random Health and Safety Checks – are you prepared?

With the new Workplace Health and Safety Reform bill approaching, business owners (regardless of how small) and company directors need to get their work place safety procedures and processes documented and complied with, to reduce the risk of severe penalties. We have heard of businesses being targeted randomly to see if they comply with the new requirements and regulations.

Tyler Price Accountants now have an ACC approved Health and Safety Manual, and we are able to assist you in meeting these requirements. If you would like to discuss, please call our office.


Companies Office Requirements

From 1 July the Companies Office will require additional information when you register a company or file an annual return. Each director will need to provide their place and date of birth – so don't be offended when we request this information from you.


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 Grey Lynn office or give us a call. We look forward to hearing from you.

March 2015 Newsletter

Easter eggs are on the shelves and the air is feeling a little chillier, although it seems like only yesterday that we were basking in the sun on Christmas break. It's all go here at Tyler Price with the end of the financial year just around the corner. As always we are here to help and are keen for your feedback on how we can improve our service to you. We have a few bits of useful updates below, which can also be found on our website http://www.tylerprice.co.nz/resources/blog. Also a wee reminder to check out our Client Profiles page and get in touch with us if you want you or your Company's profile included on our website.


Year End Reminders
By now you will have received your 2014 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 now! You can no longer make payments at Westpac.

We'll be emailing out the tax notices for the 2015 final provisional tax instalment in mid April (payment due on the 7th of May).

If paying either of these taxes by the due date is not possible please get in touch with us as soon as you can so we can set up a payment arrangement for you. Provided this is in place before the due date, you will only incur a 1% penalty plus interest. Delaying the process will result in big, unnecessary penalties!

For those of you who are GST registered, GST returns for period end 31st of March are also due on the 7th of May. Be aware 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 of March:

  1. Record your debtors (people who owe you money) as at 31 March 2015
  2. Record your creditors (people you owe money to) as at 31 March 2015
  3. 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.


Find it hard to pay GST on time?
Although we are all aware that the GST we receive on our income is not ours to keep, many of us still find it very difficult to find the cash when the dreaded GST due date comes around. We are often asked by desperate clients if they can hand over the GST to Inland Revenue as they receive it. The answer is yes! Inland Revenue is always happy to receive money: you don't have to wait until the due date. By paying as you go, you will probably end up with a refund, which will be yours to keep!


MYOB Essentials
We've noticed that many of you are moving to MYOB Essentials as it represents better value than its competitors. Please note that if you are signing up for the software you will receive a 10% discount on the monthly charge if you let them know that you are a Tyler Price client.


Interactive Questionnaire on Website
Historically we have sent you a client questionnaire for you to complete before we begin work on your accounts. This year, we have moved with the times and have uploaded an interactive version on our website http://www.tylerprice.co.nz/our_services/questionnaire.Just download and save to your desktop, then fill in the form and send it back to us with your records.


Working For Families Tax Credits
We often learn of important changes in your personal lives (such as the birth of a child) some time after the event. Please note that sometimes these changes will impact on your entitlements (for example, working for families tax credits). So please ensure that you let us know when your circumstances change – even if you don't think it will impact your tax – to ensure we are giving you the best advice.

FYI, you may be entitled to working for families tax credits if your family income is below the following thresholds:

 

 

Number of Children under 18

1

2

3

Family Tax Credit

57,500

74,000

89,000

In Work Tax Credit*

72,500

89,000

104,000

*In Work Tax Credits -
Couples must work more than 30hrs between them per week to qualify
Single parents must work more than 20hrs per week to qualify


Please get in touch with us if you meet these criteria and are not currently receiving working for families.


Inland Revenue will not be issuing Refund Cheques.
Inland Revenue has advised that they no longer want to issue refunds in the form of cheques. There is uncertainty as to whether this is to reduce administration costs or as a way to obtain the bank account details of all taxpayers (which then can not only be used for gaining information but also to retrieve unpaid tax!) Understandably, we prefer not giving your bank account numbers to them. So, we now have a Tyler Price Trust Account into which, with your permission, your tax refunds can be deposited and then transferred by us, into your designated bank account. If you are due a refund you will be asked for authorisation to have it deposited into our Trust Account.


Have you ever lived and worked overseas? Do you have a foreign Pension?
If you have lived and worked overseas and still have a pot of gold on foreign soil you may wish to consider moving it here as the longer it is left, the more it will be taxed when you do bring it back to NZ. If this applies to you, give us a call and we can discuss your options.


Credit Cards
We are aware that many of you maximise your credit card use in order to earn Air New Zealand air points. In case it has escaped your notice, after many years of association, Air New Zealand is leaving the BNZ and partnering with Westpac. If those air points are important to you, you may wish to consider doing the same!

For those of you on BankLink, choose the Business Mastercard for your business transactions; it gives you the same airpoints and status points as the Platinum Card but it's the only one that BankLink accepts. Please let us know when you've made the change so we can get your new card loaded onto BankLink straight away.

And on the subject of credit cards, we are pleased to advise that we now accept credit card payments as an option for paying your accountancy fees. However, these payments are subject to an additional 3% transaction fee. If this is of interest to you, give us a call. And note that if you pay your fees before the 31st of March, you can include them in your March 2015 GST and income tax returns.


New Health and Safety requirements…Will this affect you?
Just a reminder that from the 1stof April 2015 there will be a new Health and Safety at Work Act, replacing the Health and Safety in Employment Act 1992. Business owners (regardless of how small) and company directors need to get their work place safety procedures and processes documented and complied with, to reduce the risk of severe penalties. We are now the proud owners of an ACC approved Health and Safety Manual, which we are confident will not only help us avoid the new penalties but is now giving us a discount on our ACC levies. If you would like our assistance in doing the same, please let us know.


Company removal from the Companies Office register
In the past, the Companies Office would automatically remove companies from the register when the Annual Return was not filed by a particular date. Sadly, this is no longer the case. If you no longer want your Company to exist we will need to go through the short form removal process. This will incur a cost of approximately $300. Give us a call to discuss if this applies to you. You will continue to receive reminders to file your company annual return until it is struck off.


Overseas Directors
And another change from Companies Office: From the 1st of October the Companies Office will require at least one Director of every company to live in New Zealand. If you are a Director of a Company living overseas and we have not contacted you please get in contact with one of us to discuss your options.


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 Grey Lynn office or give us a call. We look forward to hearing from you.

Client Questionnaire now available online

You can now access the Tyler Price end of year accounting compliance questionnaire here. Just download and save to your desktop then fill in the form and send it back to us with your records.

This questionnaire will also help you decide which information we require in order to complete your accounts. There will be some items on the questionnaire which are not relevant to your situation.

Please do not hesitate to contact us should you have any questions regarding the questionnaire.

Client Feedback Survey Results

We want to thank everyone who took time to fill out the Tyler Price client feedback survey. As first time surveyors we were a little nervous that (1) no-one would respond and (2) that all the feedback would be really negative.  However, we are delighted to report that we not only received a high level of response, but that the responses were overwhelmingly positive!  We received an overall score of 4.4 out of 5, which we feel shows that we are on the right track with a bit of room for improvement.

As you will be aware, the team has worked very hard over the past year to improve our services and we're pleased to see this acknowledged in many of your responses.  Here's a summary of the results:

 

THE STAFF AT TYLER PRICE ARE HELPFUL AND EFFICIENT

96% of respondents agreed or strongly agreed with many commenting on the vast improvement in our service over the past year! We're delighted that so many of you are seeing the benefit of our efforts and promise to keep up the good work.

MY INVOICE IS FAIR AND REFLECTS THE SERVICES PROVIDED

Although 78% of people either agreed or strongly agreed (with 20% of you neutral), we did receive comments that it is not always clear what we are actually billing for.

We acknowledge that the quality of information provided on our invoices has traditionally been poor because we were using the standard MYOB Accountants Office invoice template.  We are pleased to advise that one of the biggest benefits of our June software upgrade was a significantly enhanced invoicing system and those of you that have received invoices since June will have noticed that more information is now feeding through onto our invoices.  It is a work in progress and further improvements are being made.

We are also now billing as we do significant work (e.g. GST returns) instead of just billing a year's work in one lump sum.  We believe that this is also providing transparency to our charges.

However we are also happy to provide detailed breakdowns when required.

TYLER PRICE KEEPS ME WELL INFORMED ON RELEVANT MATTERS

Although 92% of people either agreed or strongly agreed that we keep you well informed on relevant matters, we were asked for more clarity on what can and can't be claimed, some insight on ourselves, and additional 'know how' on how to make you get the most from your businesses.

We now have a website which has lots of useful information on it and is updated regularly by our team.  There's an "our people" page which gives  a bit of background on each member of the team and a "resources" page which includes a comprehensive list of claimable expenses.  We also have  a "welcome pack" for new clients which includes information about ourselves, our services, expenses, rental properties and accounting software options.  If you would like a welcome pack (even if you've been a client for some time) please let us know, otherwise log onto our website and have a browse!

In addition to our quarterly newsletter, in which we bring you up to date on recent developments, we now also have a blog on our website, on which we will post useful information as we receive it.  Please let us know if there are any aspects of business/finance which you would like us to cover in either of these forums.

We are currently conducting a review of ACC / Income Protection insurance with a view to (1) ensuring you are all adequately covered in the case of an accident, and (2) not paying more than you need to (many of you are doubling up with both ACC and private insurance).  We are also developing Health & Safety Manual templates to help you comply with the new Health and Safety legislation coming in later this year.

We are keen to help to add value to your businesses beyond simple tax compliance so please let us know if there are other areas you would like our input on.

We have had some queries about apps and software – if you have any fancy gadgets or are wondering if there are any useful apps to help you keep organised, give us a call and we can look into it for you as it will depend on what phones/laptops you own.

We have also had clients offer to come and share their areas of expertise that may be relevant to other clients, so we will be looking at having the occasional information night. Watch this space!

MY MATTERS ARE DEALT WITH IN A TIMELY FASHION

96% of people agreed or strongly agreed that we are dealing with matters in a timely fashion – once again noting a noticeable improvement from previous years.

If your work is urgent, please do let us know and we will do our best to accommodate. 

I WOULD RECOMMEND TYLER PRICE'S SERVICES

98% of you said yes – thank you:  the best clients come through word of mouth and we are always happy to meet and help new people.

Just one client expressed dissatisfaction with service received from a now ex-employee.  Please be assured that we were aware that the noted employee was not providing service to the required standard and consequently has now left the business.  We've had fabulous feedback in relation to her replacement and therefore are confident that your issues will not be repeated.

 

Finally, we are pleased to announce the winner of our Christmas Hamper draw (which we resisted the urge to include our names in…) Congratulations to Colin and Pam Laker! We hope you enjoyed the goodies.

tools Tools & Resources

We offer a range a range of free, easy
to use online resources including
calculators, Key financial dates, tax facts and useful internet links.
contact Contact Us

Call us on 09 360 8425 or send us an email           
41B Sussex Street
Grey Lynn
Auckland 1021 
New Zealand
PO Box 8034
Symonds St
Auckland 1150
New Zealand