Call us 06 757 4843

Different Business Structures

So you have a great idea for a business – awesome! But then the questions start… what’s the difference between a sole trader and limited company? What are the pros and cons of each? Suddenly this can become very daunting – but it doesn’t need to be. This blog will give you a basic rundown of the different business structures commonly seen and help you decide which option is best.…  Read more

Entertainment Expenditure — Provision of Coffee for Employees

We often see instances of business owners purchasing food and drink and wishing to claim a deduction through the business.  Whilst the general permission will give some guidance there is a further regime that can apply to limit the claim you make – the entertainment regime.  The following question and answer from CCH illustrates the rules in terms of coffee being purchased for staff.   Question A company is considering three options for…  Read more

Core Values: Compassion

Core Values – something we all have, and something that we view as important. They are unique to each individual and we often surround ourselves with those who have similar values. We look for these values in our friends and those closest to us, so wouldn’t it be important to have them in our business as well? Defining a set of Core Values allows those involved with your business (whether…  Read more

AIM-ing to please

IRD are promoting AIM (Accounting Income Method) pretty hard as they envisage great benefits in adopting this method of paying provisional tax.   We agree mostly and see some significant advantages, including:- · Promoting best practice by ensuring regular reporting and assessment · Increasing contact with key advisors (in this case us) · Promoting financial awareness by introducing accounting adjustments and ensuring you understand and acknowledge these · Better aligning…  Read more

Provisional Tax Options 2018

Provisional tax is effectively a progress payment to ensure that tax is being paid by most taxpayers as they earn their income throughout the year. It is paid in instalments, the number of which can depend on your GST filing cycle. You become a provisional taxpayer when your Residual Income Tax (RIT = end-of-year income tax less any tax paid at source) is greater than $2,500.   There are 4…  Read more

Business Planning – Why Bother?

Often we find people have an idea of what they want to do and where they want to head, but don’t actually have a plan. By not having a roadmap of where they want to head they are risking getting lost along the way, or even worse not ending up at the destination at all.   Business Plans are an asset to your business as they allow you to look at…  Read more

Food, Drink & Entertainment Expenses

Clients often ask what they can and cannot claim in relation to food, drink and other entertainment expenses and this area often tends to be confusing.  Due to this we see clients either claiming everything or nothing. Claiming everything can leave you exposed to investigation with interest and penalties being imposed on overclaimed tax.  This concern often leads other clients to claim nothing thereby missing out on a genuine tax…  Read more

Government Grants for business planning and coaching

There is government funding available to help eligible businesses access a financial subsidy of up to 50% toward the cost of their business planning or coaching with us. If you’re a local in Taranaki, the first step to access the subsidy is to contact Natacha Dunn at Venture Taranaki (06 757 6054 natacha@venture.org.nz) who will assess whether your business qualifies for the funding. Find out more about the funding and…  Read more

Top up your Kiwisaver account for full tax credit

There is a Member Tax Credit (MTC) that the government grants to anyone contributing the minimum $1042.86 to their KiwiSaver account each year. This MTC is added to your account based on the annual contributions to 30 June.  The maximum MTC awarded is $521.43 – matching 50 cents to every dollar invested to a maximum MTC of $521.43. For many taxpayers who receive their income through PAYE deducted salary and…  Read more

Manage your 7 May Provisional Tax Payments with tax pooling

This time of year is often tough for businesses, with terminal tax having just been paid and the final installment for provisional tax due 7 May. You may not be aware but there are now options to ease the pressure, or to make your tax obligations fit in with your cashflow. By using a tax intermediary, you can arrange to pay your provisional and terminal tax in installments, or even…  Read more

Year End Check List

The end of the financial year is rapidly approaching and if you want to be ahead of the game, here’s a few things you can do to get things in order. Stock take If you carry trading stock, you are required to do a stock take to record the value of your stock on hand at 31 March.  If at all possible, do this on the actual day.  Stock is…  Read more

Thinking of buying a new car for the company?

Well it may pay to figure out the tax consequences first.  Especially so as the rules are expected to change from 1 April 2017. So from our previous blog “How do I claim vehicle expenses when I have a company?” we know that Fringe Benefit Tax (FBT) will apply where a company owns a vehicle and allows this to be available for use by a shareholder-employee. However, that is to…  Read more

What business records do I need to keep?

As you’re probably aware, it’s a legal requirement to keep your business records for at least 7 years. For many, the threat that IRD may want to conduct a routine audit is a key motivator for keeping good records.  But there are other advantages too including making things easier to find for insurance claims, explaining variances from your budgets, or answering questions and requests when your accountant compiles the year-end accounts.…  Read more

Get rid of your filing cabinet – store your records online

Does your filing system consists of receipts and invoices stashed in a shoe box, email inbox, mail tray, filing cabinet, work truck, jeans pocket .. ? Sound all too familiar? Compiling and storing your business files and paperwork can be a time consuming headache and can add up to piles of paper not to mention stress at tax time when your accountant asks you for documents and you can’t track…  Read more

How do I claim vehicle expenses when I have a company?

Claiming vehicle expenses in companies is increasingly becoming an area of interest for Inland Revenue and businesses are often exposing themselves inadvertently to investigation and penalties through simply not being aware of the issues.  So, below is some basic explanation and help. Currently companies can claim expenses in two ways depending on the ownership of the vehicle. • Privately owned vehicle – mileage rate, currently the Inland Revenue rate of 72…  Read more

Can I claim my vehicle expenses?

If you are self-employed or in a partnership and you use your own vehicle privately as well as in your business, your work related vehicle expenses are claimable.  These include petrol, diesel, registration, WOF, repairs, tyres, road user charges etc.  So how do you work out what portion of your expenses are work related, and therefore deductible? You can choose one of the 4 following methods to calculate what amount…  Read more

Sign your tax returns online!

As IRD can now accept electronic signatures, we will be sending your returns via a Xero portal for you to view, then electronically sign and return to us for filing. This saves you having to print, sign, scan/post/hand deliver your returns!  Your signed return stays available online so you can view and print whenever you like. See how it works here:  Read more

Christmas gifts and parties for employees

It’s normally in the run up to Christmas that we begin to consider gifts or a party to reward our employees for their services over the last year. Done right, the goodwill generated can be significant with staff feeling valued and part of something great. Which all leads to a better business with hard working and loyal staff. But, before we settle on how to reward our people let’s consider…  Read more

Are client gifts of food and drink tax deductible?

For a long time many have considered that gifts of food and drink given to clients, say at Christmas, have been fully deductible for tax. Certainly, for a good while Inland Revenue thought so too. However, Inland Revenue has recently changed their minds and have affirmed the fact that they see these food and drink gifts being subject to the entertainment rules. These rules operate to allow only 50% of…  Read more

What value does your accountant bring to your business?

Interview with Craig from The Project Guys – Listen here to find out what questions you should be asking your accountant In this episode, Craig speaks with Andrew More, Owner and Managing Director of More CA, a chartered accountancy firm.  Andrew has set out to add value to his services by not just helping his clients with compliance but also offering them real world advice, assistance, and guidance. When asked about the…  Read more

Want to grow your business? Our Free Resources will Help