The end of the financial year can be either stressful or a seamless part of what you do. Ideally, your end-of-year accounts will confirm what you think your business has been doing for the past 12 months.
Be a good scout to avoid end-of-year migraine
Being prepared is the key to avoiding end-of-year financial drama and stress.
We have mentioned this in the past, but don’t forget payday filing for employers is compulsory from 1 April 2019. Please contact us if you need any help with complying with the new process and rules.
No more cheques for IRD
Do you send post-dated cheques for tax payments? It’s time to go digital! From now on you’ll need to use online banking to make future-dated payments as the IRD no longer accepts post-dated cheques. Plus, if you’re one to put your tax payments in the IRD’s dropboxes, you’ll now have to head to an IRD office reception area (during office hours) to do so.
Writing off bad debt? Get your ducks in a row
If you’re expecting a tax break from writing off bad debt, you may also expect to hear from the IRD asking you to prove the debt is, in fact, bad. A new ruling means the IRD could request evidence of any steps you took to recover the debt (before writing it off) and proof there is no reasonable likelihood the debt will be paid. So, get your paperwork in order!
Hundreds of Kiwi business owners are enjoying the benefits of payday filing – are you?
If not, you’ll need to be by 1 April when payday filing becomes compulsory.
Now’s the time to work out how you’re going to integrate it into your payroll processes and save time on your tax obligations.
Payday filing means you need to:
Remember, the due date for payment remains the same at the 20th of the month
(or 5th and 20th of the month for twice-monthly filers).
How do I payday file?
There are three ways to file electronically – direct from payroll software, file upload from myIR or onscreen via myIR.
How do I shift over to payday filing?
The Tax Working Group’s recommended taxation of capital gains has been widely scrutinised in the media. In this newsletter we provide a brief overview.
The Government has signalled that it will respond to the report in April. They have also signalled that they intend to table draft legislation containing their CGT proposals prior to the 2020 general election in order that the detail of those proposals is available to the public when they go to the polling booths for those elections. We expect the Government will pick some only of the Group’s recommendations, the key elements of which are:
More than 200,000 New Zealanders and their families will benefit from the minimum wage going up to $17.70 an hour on 1 April 2019 — an increase of $1.20. The starting-out and training minimum wage rates will increase from $13.20 to $14.16 per hour (remaining at 80% of the adult minimum wage) and the Government has set indicative rates of $18.90 from 1 April 2020 and $20 from 1 April 2021
We are making some changes to our billing process for streamlining and efficiency reasons. These changes apply to most software subscriptions, and some GST clients.
Software subscription charges such as Xero, BankLink, MYOB, which we currently pay the suppliers monthly on your behalf, we will now in most cases, invoice you quarterly in arrears, for charges incurred from 1st January 2019. So the first quarterly subscriptions invoice will be issued in March 2019, covering charges from January to March 2019.
To get the ball rolling for the new financial year, around the end of March we will be sending out the annual terms of engagement document to clients. As required by regulation, this document re-affirms our engagement for the forthcoming year.
We will again be publishing this document to clients via our secure online portal.
Johnston Associates has decided to provide more regular information via social media channels – namely Facebook and LinkedIn. We will continue to publish our quarterly newsletter, but you will find more regular and timely information through these channels.
So choose your preferred outlet by clicking on one of the buttons below, and don’t forget to follow us!
Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this newsletter; always see your professional advisor before taking any action that you are unsure about.