Hello to all our Clients
Hopefully the bad weather is over, and the short working weeks are behind us for a while, it’s now time for the serious business of running our businesses.
The end of the financial year (31st March) is looming on the horizon.
If you haven’t got your work to us in order for us to complete your end of year accounts, please rush them to us as soon as possible. We work on a ‘first-in-first served’ basis, so the sooner you get your records to us, the sooner we start on your accounts.
In this update, we have included articles that we trust will be interesting, informative and of value to your business. We hope you enjoy them.
Keep work tech at home up-to-date
If you’re working for a business from home, you might not have the most efficient technology to work efficiently.
Many employees will have access to a team who can keep them upgraded, but often you’ll be expected to keep both hardware and software up to date.
Seven year records might not be enough
Inland Revenue requires us to keep our business records for seven years – But it’s not quite as simple as this.
The IRD department requires taxpayers to prove themselves innocent if ever they are challenged. So in 10 years, Inland Revenue might approach you with a question they want answered. You would need to be able to answer the question and if it was going to give rise to a tax issue, prove yourself to be right.
Control Income by Controlling Direct Costs
Why are direct costs so important in your Business?
Direct costs are important because they should generally be about the same proportion to your sales. If your costs are out of proportion to your sales, you need to take a look at your direct costs.
The more often you can measure your direct costs, the better control you will have over your business.
Special deal for travel from home to work
The latest tax Bill proposes a subsidy by an employer – mainly for the purpose of an employee travelling on public transport between home and work – the proposal states that it will not be subject to fringe benefit tax.
Public transport means bus, train, ferry, tram or cable car. It does not include airfares, taxis, shuttles and E-scooters.
The Government plans to bring this law into effect from 1 April 2023.
Obviously, if your business is a company, you can also subsidise yourself, as an employee, for public transport.
Briefly:
Make tax reminders
Set up tax reminders in your diary for a couple of weeks before each date tax is due to be paid. Reminders coming by email might not reach you or they might go to your junk folder and not be noticed.
Flu, Covid vouchers and Fringe Benefit Tax
If a fringe benefit relates to the health or safety of an employee and is aimed at managing risks to health and safety in the workplace in accordance with the Health and Safety at Work Act 2017, it will be exempt from FBT. Vouchers for flu or Covid vaccines are exempt from FBT under this provision.
Tax Calendar
28th February 2023 – GST for the period till 31st January 2023
7th April 2023 – Terminal tax for the year 2022 (March, April, May and June balance dates), and includes all clients except those who have lost their extension of time privilege
