Hello Clients,
Welcome to the news update.
We trust all our Clients are surviving in these difficult times in which we are living at the moment.
In this update we include suggestions, give information and offer business support for our Clients.
We hope you will enjoy reading it.
Get your accounts sorted now.
The end of the financial year is getting rapidly closer.
It’s time to tidy up your accounts ready for the end of the tax year.
There are a number of things that you will need to consider, we have put together a check list for you to use, click on the link below to view.
Working from home – what are the costs?
As a result of Covid-19, some employers and employees have decided to make working from home permanent.
This raises the issue of what it costs the employee for the use of their home and the extent to which an employer can reimburse for this and have the payments tax free for the employee.
Financial support for workers in self isolation
There are two different payments available when workers need to self-isolate because of COVID-19 or are waiting on a test result and can’t work from home:
The border reopening plan
Border restrictions are about to be eased.
This will enable some international business travel to resume and allow more critical workers into New Zealand.
There will be no need for managed isolation and quarantine.
This is indeed good news for both families and businesses in New Zealand.
Many families have not seen loved ones for a long time and businesses have suffered from the lack of skilled (and unskilled) workers into the country.
The Government has released a 5 stage plan for the re-opening of the border.
Nowhere to hide from child support
It is going to become more difficult for people to avoid paying child support by moving to another country.
New Zealand has joined 43 other countries in ratifying the Child Support Convention.
Our country will be able to request collection and enforcement of child support and domestic maintenance from any member of the 44 countries.
GST and layby goods
Some businesses buy goods on layby.
If you do, you should note you can’t claim GST on the payments until the goods are yours.
While they are on layby you don’t own them.
The same doesn’t apply to hire purchase where GST can be claimed in full upfront.
Tax by stealth
Bracket creep is where inflation ensures your income rises over time and if the tax thresholds are not adjusted your income creeps up into a higher tax bracket.
The Government progressively takes a greater proportion of it.
In August last year Parliament rejected a Bill suggesting the tax rates be adjusted every three years to allow for bracket creep.
