Please follow the link for IRD update regarding Covid support - https://www.ird.govt.nz/updates/news-folder/resurgence-support-payment
As the end of another financial year is quickly approaching we want to remind everyone that Inland Revenue and Accident Compensation Corporation will no longer be accepting cheques. 1 March 2020 will be the last date you can pay be cheque. There are however other ways to pay: Inland Revenue - Options for payment: • Electronic via internet banking or direct debit in MyIR. Paying this way minimises delays and includes a formal notification of the date and time the payment was made to Inland Revenue. • Customers can make payment by debit/credit card over the phone, through the unauthenticated payment page on the Inland Revenue website, and through myIR. • Taxpayers can also set up direct debits in myIR. • Cash or eftpos are still payment options but only at Westpac branches. They’re not accepted at Inland Revenue offices. Accident Compensation Corporation – Options for payment: • Electronic payment via internet banking. • Direct debit payments and monthly instalments can be set up via MyACC for Business. • Payment by debit/credit card over the phone, through the unauthenticated payment page on the ACC website, and through MyACC for Business. • Cash or Eftpos are still payment options but only at Westpac branches. They’re not accepted at ACC offices. If you are struggling with payments or would like any advice going forward, please contact us and we will be happy to advise the best way forward for you.
An entertainment expense where the benefits are enjoyed or received by employees may be subject to fringe benefit tax (FBT). There are 4 major types of business entertainment expenses: 100% deductible, not liable for FBT 50% deductible, not liable for FBT 100% deductible, liable for FBT 50% deductible, liable for FBT. These are summarised briefly below. Read our Entertainment expenses guide (IR268) to find out more about entertainment expenses. 100% deductible, not liable for FBT Entertainment expenses will be 100% deductible and not liable for FBT if they’re completely business related. This includes: meals an employee buys while travelling on business (unless it is with an existing or potential business contact, or the meal is a celebration, reception or similar event – in these situations it would only be 50% deductible) food and drink provided at a conference, education course or similar event that lasts at least 4 hours (unless the conference is mainly for entertainment – in which case it would only be 50% deductible) light meals provided in a dining room for senior managers and consumed as part of their duties (such as sandwiches provided during a board meeting) entertainment that promotes your business (as long as the public has the same access to this as your employees, business contacts or people associated with the business – if the public has less access it would only be 50% deductible) entertainment that is only a secondary part of either a function that is open to the public, or any trade display (for example, serving coffee at your business’s trade display) freebies promoting your business (such as branded stationery, but excluding any given to employees or people associated with you – these are only 50% deductible) entertainment provided to someone who’s going to review it for publication (such as giving a free meal to food critics) entertainment provided at a discount, if your business regularly provides entertainment at market prices (for example, offering half-price meals at your restaurant) entertainment enjoyed outside of New Zealand. 50% deductible, not liable for FBT Entertainment expenses will be 50% deductible and not liable for FBT if they are not completely business related. This includes entertainment that is away from work or out of usual working hours, so it has a 'significant private element'. The expense will be 50% deductible even if you think the private element was more or less than 50%. Examples of this include: entertainment at sports or cultural events (for example, a corporate box) business use of a holiday home hiring a boat, and providing food and drink to people on it food and drink you provide for social events (such as parties) or in an area set aside for senior employees (though there is an exception for 'light meals' consumed as part of the manager’s duties, which are 100% deductible) gifts of food and drink that benefit your business and are enjoyed privately by the person who receives them (for example, if you give a bottle of wine to each customer who buys a car off you) 'supporting expenses' for other entertainment that’s 50% deductible, such as hire of wine glasses and wait staff for a party 100% deductible, liable for FBT Entertainment expenses will be 100% deductible and liable for FBT if they are received by employees because of the work they do. Examples of this include rewards for good performance, such as a restaurant gift voucher or weekend away. 50% deductible, liable for FBT Entertainment expenses will be 50% deductible and liable for FBT if the benefit is not provided while the employee is working, or because of the work they do. This includes situations that would usually be 50% deductible and not liable for FBT (see above), except that in this situation the employee: can choose when and where they receive the benefit, or will receive the benefit outside of New Zealand. To download the Ir268 - Entertainment expenses form click here Please note that this information has been extracted from the IRD website.
2019 saw the beginning of Falloons' monthly Newsletter Accelerate. Each month clients will be emailed the newsletter which is full of key dates, interesting features and helpful tips. If you are a client and have not received a Newsletter but would like to please contact Emma at reception@falloons.co.nz We will also be posting links to the Newsletter on our website so look out.
Please be aware that scam IRD emails are circulating; we would hate for you to get caught out. If you are ever unsure of the email you have received you can forward us the email at reception@rbal.co.nz and we will let you know if it is real. Alternatively follow these steps: 1. Create new email 2. Insert the suspicious email as an attachment 3. Send the new email to IRD at phishing@ird.govt.nz Unfortunately a lot of scam emails are realistic and only minute details give them away. If you would like to visit the IRD website for more information on scams follow this link: https://www.ird.govt.nz/identity-security/scam/scam-alert.html
This pay increase in April 2019 will be causing a bit of a stir among employees and employers alike. Employees and trainees will be celebrating the rise of minimum wage rise of $1.20 to $17.70 an hour, increasing full-time workers' weekly pay by $48 before tax. This leads to another raise taking it to $18.90 on 1 April 2020 and again to $20 on 1 April 2021, in line with the Labour/New Zealand First Coalition Agreement. Small businesses, however, may struggle to find the extra income and may need access to funding to ensure they could cover the cost increase, if they are not able to raise their prices. The higher minimum wage may also make it harder for some workers to enter the workforce due to stretched budgets. If you have any queries and would like some advice from one of our wage experts on how this might affect you as an employer or as an employee please don't hesitate to contact us either at wages@falloons.co.nz or on 03 308 9194.
Some charities seek donations of livestock, indicating that in return they will provide a receipt for 'tax purposes'. However, donations of livestock create serious taxation difficulties for any farmer who tries to assist a charity this way. - The charitable donations rebate only applies to gifts of money . Refer to the Income Tax Act 1994 here . - It is not possible to claim a rebate for the donations of time or goods, only money. - The donation of an animal is a taxable supply for GST purposes. the taxpayer must include the open market value (GST inclusive) of the donated animal in 'sales' in the relevant GST return and will therefore have to pay the GST output tax on that animal. Accordingly, the taxpayer must include the value of the donated animal in livestock sales for the year and account for income tax in the normal way. To conclude, donating livestock is a tax disaster. It would be better to sell the animal and account for income tax and GST in the normal, then consider giving a cash donation to the charitable
If you operate more than one taxable activity and choose, or is required, to register for GST, all taxable activities have to be taken into account, however small. You could have one of the taxable activities in your personal name, and the other in a company's; in this case the GST registration threshold needs to be applied for separately - for each entity. An example of this might be a couple who run an Air B&B and also run a delivery business, you can't keep the Air B&B separate. however if the couple owned the Air B&B as a partnership and one of them owned the rural delivery business alone they would only have to register the latter. If you have any queries about GST please do not hesitate to get in touch here and a member of our team will be happy to give you their expert advice.