Hello to all KTS Clients,
The month of March is the final month before the end of the financial year 2023.
This update deals with:
- What you need to do in your Businesses to do to prepare for the end of financial year.
- The annual Questionnaire which is available for 2024
- Law Changes that can affect your Business and future possible changes.
- Family trust matters – should you pay dividends before the end of the financial year.
If you require any further advice or have any worries about your financial situation please reach out to us at KTS.
Info from Jasmine
Office Manager
Hello to the Clients,
There are a few details I would like to bring to the attention of some of our Clients.
KTS Bank Account change.
There are still some Clients who have not yet made the change to the new Bank account details for KTS.
The previous Bank account will be closed at the end of March so your payments will bounce back to you.
The new bank account number is: 02-0152-0014946-000
Tax Notices not received?
Some of our Clients have contacted me to say that they never received their Provisional and/or GST tax notices.
Rest assured that they will have been sent out.
Sometimes however, our system notices can be marked as spam or junk mail.
If you feel you haven’t received your tax notices, please check the junk or spam folders.
Please feel free to contact me if you require any further information or assistance.
What to deal with before the 31st March
Deal with the important stuff now, before balance date.
Before the 31st March there are a number of important things that need to be considered for most Businesses.
These include:
- Writing off bad debts
- Culling your stock
- Motor vehicle claims
- Insurance premiums
- Vehicle logbook updates
Early Birds
Some of our Clients are early Birds and like to get their information to us at the start of the new financial year on the 1st April.
For these Clients, the questionnaire for 2024 is ready to go on the KTS website.
Law change round-up
A new government usually means some changes to laws.
It’s important for Businesses to keep up with the changes that will impact on your own Business.
We have summarised some of the important updates for small businesses including:
- 90 day trial periods
- Repeal of Fair Pay Agreements legislation
- Potential changes to Tax
Family Trust Matters
Company shares owned by your family Trust?
When should you pay dividends?
Paying Dividends
If your company shares are owned by your family trust, consider paying the maximum possible dividend before 31st March 2024.
The income tax rate in the family trust will probably be increasing to 39% from 1 April 2024.
Therefore, any dividend declared from that date onwards is going to incur an extra six cents in the dollar of tax.
The law has not yet been passed, however the IRD recently released guidelines on what might constitute tax avoidance in terms of the trust rate moving to 39% so it would seem it is likely to happen.
Family Trusts & children who grow up
The maximum amount you can distribute from a family trust to a child who is under the age of 16 on the trust balance date is $1000 to still have this taxed at the child’s personal tax rate.
If you distribute just one dollar more, the tax rate becomes the same as for the trust.
It’s easy for us, with our busy business lives, to not notice when a child goes over the age of 16. Instead of paying 39% tax on the trust income, it could be handy to allocate some of its income to the youngster, perhaps to help with tertiary education. Once the age of 16 has been reached, the amount you can allocate to a young person is no longer limited.
