<![CDATA[taxmadeeasy.co.nz - Blog]]>Fri, 03 Sep 2021 08:09:48 +1200Weebly<![CDATA[August 27th, 2021]]>Thu, 26 Aug 2021 22:13:03 GMThttp://taxmadeeasy.co.nz/blog/august-27th-2021
So this is one of those reminders that no one wants to receive!

This is friendly reminder that Provisional tax and GSt is due tomorrow 28th (or Monday as this is the next working day)
While these payments are due IRD is VERY understanding with regards to the current situation and impacts on cashflow.

​So please if you are unable to make payments that are due, contact IRD to firstly let them know how impacted you are.

This is straight forward to do and is done via your MYIR account  - see screenshots below
You can also see this is the same place that can apply for the Resurgence payment as well as set up an Installment arrangement


IRD is also granting remission of penalties and interest for late payments, that have occurred due to the impact of Covid.
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When the Commissioner will remit penalties and UOMI
To be eligible for remittance of penalties and UOMI, the taxpayer must meet the following criteria:
  • The taxpayer has tax that is due on or after 14 February 2020;
  • The taxpayer’s ability to pay by the due date, either physically or financially, has been significantly affected by COVID-19;
  • The taxpayer will be expected to contact the Commissioner as soon as practicable to request relief and will also be required to pay the outstanding tax as soon as practicable.

Information to be provided when requesting relief
Inland Revenue is trying to minimise the information they would ask to be provided during these unusual times. By continuing to file GST and other returns we will have a lot of the information they would normally ask that you provide to us.
However, everyone should be able to provide, if asked, at least three months banks statements and credit card statement; any management accounting information; a list of aged creditors and debtors.

They will not ask for that information in every case, but the information should be available if we do ask for it.
This is a lot of information to take in, I am here if you have questions or need help! ​
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<![CDATA[Family Time]]>Wed, 25 Aug 2021 00:33:57 GMThttp://taxmadeeasy.co.nz/blog/family-time
So I have decided that really no one wants to see accounting posts on social media, why? Because it's boring?

So during the lockdown I will be posting more what goes on in the "office" and here at the "Tax Made Easy" House.

Yesterday I had the day off, ignored most of my emails and calls (I will be replying to those today)
We baked a cake, gave lots of presents and celebrated my wife now catching me up age wise.

Remember , The lockdowns are especially hard on all business owners, we all need a day to refresh and the work will still be there tomorrow.

So, take a morning off, bake a cake, play with the kids.


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<![CDATA[A guide to Provisional Tax]]>Thu, 19 Aug 2021 22:43:50 GMThttp://taxmadeeasy.co.nz/blog/a-guide-to-provisional-tax
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<![CDATA[Quick Update - COVID 19]]>Wed, 18 Aug 2021 23:31:23 GMThttp://taxmadeeasy.co.nz/blog/quick-update-covid-19
Hey Everyone 

This is a quick (ish) overview of what is available for you to be able to claim and how too, note this has been emailed to everyone. But in case you missed the email :)


Resurgence Support Payment (RSP)

Here are the details on the new support payment in response to the change to level 4.
  • A business must have experienced at least a 30% drop in revenue. If you are a capital-raising business, yours is a 30% decline in capital-raising ability.
  • This drop must be over a 7 day period and must be compared with a 7 day period in the 6 weeks prior to the increase from alert level 1. You can choose the start date of your 7 day period as long as it's after the increase in alert level and all 7 days must be within Alert Level 4.
  • Businesses and sole traders must have been in business for at least 6 months and must be viable and ongoing.
  • You must pay 15% GST on payments received under the RSP. The payment can be used to cover business expenses such as wages and fixed costs.
You can apply to receive the lesser of:
  • $1,500 plus $400 per full time-equivalent (FTE) employee, or
  • Four times (4x) the actual revenue drop experienced by the applicant.


Applications for the COVID-19 Resurgence Support Payment will open at 8am on 24 August 2021. You need to apply through Inland Revenue  www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment so please check the IRD page for updates, and you will need your NZBN number, employee details (such as name, IRD number and if the employee is full time or part time), bank account number, and income details for the 7 days.


COVID-19 Wage Subsidy Scheme
Businesses and self-employed people must expect a 40% drop in revenue (income) to be eligible to receive the wage subsidy.

The wage subsidy is paid in a 2 week lump sum. You can get:
  • $600 per week for each full-time employee ( a working shareholder counts)
  • $359 per week for each part-time employee
As an employer you must pass on the full wage subsidy to your employee. If the wage subsidy is more than your employee's pay, you can continue to pay them at their normal rate. (Note contractors have to apply for this themselves)

Applications for the August 2021 Wage Subsidy will open on Friday 20 August 2021 at 9am and will be open for 2 weeks. You need to apply through Work and Income.

https://www.workandincome.govt.nz/.../wage-subsidy-august...


IRD - Payments Due in August
Note that the following payments are still due with the IRD in the month of August.
  • Employer deductions due on the 20th of August 2021.
  • Provisional Tax due on the 28th of August 2021 
  • GST is due on the 28th of August 2021 if you are GST registered on a monthly or two-monthly basis.
If you are unable to pay your personal or business taxes on time due to the impact of COVID-19 get in touch with IRD


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<![CDATA[IRD and Real Estate Review]]>Tue, 11 May 2021 23:22:12 GMThttp://taxmadeeasy.co.nz/blog/ird-and-real-estate-reviewYesterday IRD advised all Tax Agents that Inland Revenue is looking closely at real estate salesperson/agent customer groups.

There information suggests some of these customers are claiming private expenses and are not keeping logbooks or retaining other business records to support a deduction.

Real Estate has always been a high-risk industry with regards to this and I saw a few “interesting” cases when I worked there, not that I am ever allowed to disclose them, let’s just say there are some real estate agents that would never use.

What this means though, is that IRD will be sending letters to those Real Estate Agents (or their accountants) that they suspect of the above behaviours asking to provide proof of their expenses.

What does this mean for you? Well, if you are my client, do not be worried at all, if you are not and you do not have records, then its time to get on top of this before IRD comes knocking.

Because they will! I used to do it and know the drill .
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<![CDATA[Govt housing package backs first home buyers]]>Tue, 23 Mar 2021 00:18:19 GMThttp://taxmadeeasy.co.nz/blog/govt-housing-package-backs-first-home-buyers
The Minister of Finance, Hon Grant Robertson, has announced proposed changes for residential property acquired on or after 27 March 2021. The proposed changes include:
  •  extending the bright-line test to 10 years 
  • amending the main home exclusion which would require tax to be paid on gains made for periods the property is not used as the owner’s main home
  • allowing newly built homes to use a 5 year bright-line test
  • not allowing property owners to claim interest on loans used for residential properties as an expense against their income from those properties. This would start from 1 October 2021, and would also be phased in over 4 years for existing properties. There would be an exemption for newly built homes.

https://www.beehive.govt.nz/release/govt-housing-package-backs-first-home-buyers

Some of these are huge proposals, especially for property investors, the standout part of this for me it the removal of being able to claim mortgage interest as an expense against the rental income, that is massive.

I don’t feel the bright line extension will make that much difference as those that are “flipping” properties usually do this within 6-12 months, so this one looks a bit empty unless I am missing something.

And the “tax to be paid on gains made for periods the property is not used as the owner’s main home” that’s going to be interesting from a compliance perspective. 

Thoughts on this?
government_housing_programme_factsheet_0.pdf
File Size: 170 kb
File Type: pdf
Download File

housing_package_detail.pdf
File Size: 175 kb
File Type: pdf
Download File

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<![CDATA[Apply for the Resurgence Support Payment (RSP)]]>Sun, 07 Mar 2021 08:20:19 GMThttp://taxmadeeasy.co.nz/blog/apply-for-the-resurgence-support-payment-rspApplications for the Resurgence Support Payment (RSP) will open for eligible businesses and organisations 7 days after the alert level increase. Once applications open, they will remain open for one month after all of New Zealand returns to alert level 1. There are currently 2 periods for which applications can be submitted:

Alert level change 15 February - Applications are open. The last day for applications is 22 March 2021.

Alert level change 28 February - Applications are open.
More information can be found at:-

www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment/apply





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