Keep up-to-date with us and what's happening in the business world |
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- 2024 Annual Accounts Questionnaires - Terminal Tax Reminder - Due 7 April 2024 - Residential Property Interest Deductibility & Trust Tax Rate - Contacting Inland Revenue During the Lead up to the 31 March 2024
- Minimum Wage to Rise From April 1 ($23.15 per hour) - Xero Tip of the Month: Working with Multiple Tabs - Welcome to the Team: Barb Mitchell & Jared Magan - Tax Question of the Month: Depreciation Implications of Inheriting a Vehicle
- IRD Upcoming Tax Payment Dates |
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Our 2024 questionnaires can now be accessed via our website by clicking the button below.
We would appreciate it if you could please take the time to read through the questions and worksheets that are relevant for both your personal and business accounts. Once you have gathered and collected all the required information to attach, please email your completed questionnaires through to the team at admin@aafl.nz. The right information helps us to help you:
Having all the necessary information helps us look closely at your accounts and ensure you’re not paying too much tax. For instance, if we don’t know about your expenses, we won’t be able to offset them against your income, so you’ll pay more tax than required.
Additionally, completing your annual accounts promptly allows you to analyse your business's performance. By comparing it to previous years, you can identify areas of success and areas needing improvement, empowering you to make better decisions for the upcoming year.
The sooner we have all of this information, the sooner we can complete your accounts and notify you of your tax position. For clients utilising Xero, we are likely to need the following key information: - A list of stock on hand at 31 March 2024 (if over $10,000);
- Copies of loan statements at 31 March 2024;
- Copies of invoices for any large asset purchases (IE: new vehicles, etc.); and
- Completion of the Use of Home Office template or list home office expenses.
We will require additional information detailed on the Non-Xero questionnaire for clients not utilising Xero.
If you have any questions or concerns about the process, feel free to reach out to us today at 04 970 1182. We're here to help. |
Questions? We can help:
We’re happy to provide you with an update on how we’re getting along, so feel free to ask at any time. If you require any assistance, or have any questions around the above points or the questionnaires, please do not hesitate to give us a call on 04-970-1182. |
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TERMINAL TAX REMINDER - DUE 7 APRIL 2024 |
This week we have sent out tax payment reminders via email to all clients that have terminal tax due on 7 April 2024.
If you will have any difficultly making the payment in full, please contact us (admin@aafl.nz or 04-970-1182) as soon as possible to discuss options such as instalment arrangements or deferring through Tax Management NZ. |
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RESIDENTIAL PROPERTY INTEREST DEDUCTIBILITY & TRUST TAX RATE |
The Government announced last week that that interest deductibility will be reintroduced for residential property investors over the course of the next 2 financial years. From 1 April 2024, interest deductibility will increase from the current 50% to 80% and then from 1 April 2025, increase from 80% back to 100%. This will be welcome news to property investors, given the significant increase in interest costs over the last two years, and ever increasing property costs such as rates and insurance.
The Government also announced that the Trustee income tax rate will be increasing from the current 33% to 39%, for net income exceeding $10,000 per annum. We are currently working through what this means for all our clients Trusts. We will be touch over the coming weeks, with suggestions around how to best administer your Trust in the future.
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CONTACTING INLAND REVENUE DURING THE LEAD UP TO THE 31 MARCH 2024 |
With only 5 working days left until the end of the financial year (1 April 2023 to 31 March 2024), Inland Revenue is currently experiencing exceptionally high call volumes and a surge in email enquiries. This increased demand for assistance means that reaching them promptly may be challenging.
During this busy period, it's important to plan ahead and allow extra time for any interactions with Inland Revenue. If you have urgent enquiries or need any assistance, please don't hesitate to reach out to us for support on 04 970 1182. We're here to help navigate through any financial matters you may encounter. |
MINIMUM WAGE TO RISE FROM APRIL 1 ($23.15 PER HOUR) |
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The minimum wage will be rising to $23.15 per hour from 1 April 2024. - a 2% increase from the current hourly rate of $22.70. The Starting-Out and Training minimum wage rates will both increase to $18.52 per hour, remaining at 80% of the adult minimum wage. It's important to get your ducks in a row before this changes comes into effect. This includes: - Advising your minimum wage team members of the increase
- Checking your payroll systems and processes
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Updating your employment agreements if relevant
- Updating your business budget.
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Costs are increasing In addition to the cost of labour, inflation has put upward pressure on everyday items. That will likely increase your general running costs and the price of materials. Petrol prices are up, for instance, and supply chain issues have driven up the cost of many imported products. Is it time to review your pricing
Ideally, your business should increase costs by a tiny amount each year, rather than by a big jump every five years, for instance. Small increases help prevent price shocks for customers, and keep your business in line with the rest of the market. Can you cut costs? If you don’t think increasing your prices is an option, or you still need to make more of a change, you may need to cut back your spending. We look at your business line by line, so we can help you identify areas where you might be able to trim the fat. Give us a call on 04 970 1182 today – we’re here to help. |
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XERO TIP OF THE MONTH: WORKING WITH MULTIPLE TABS |
Experience the power of enhanced productivity by working with multiple tabs at once!
Did you know that you can view multiple pages of your organisation in Xero at the same time by using tabbed browsing? (as long as you're using a supported browser and aren't viewing multiple organisations at once). There are three main ways to open a link in a new tab: - Hold down Ctrl + Left Click on the link
- Right click on a link and select Open link in new tab
- Ctrl + T to open a new tab
It is important to note that the data displayed on one tab will not automatically update in the other open tabs when you make a change. You must navigate to the other tabs and refresh your page (F5)
Once you've finished with your other tabs, simply right click on any tab, and select Close other Tabs |
WELCOME TO THE TEAM: BARB & JARED |
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Meet Barb, who, although born at the top of the South Island in Motueka, has spent most of her life in Wellington – a rare breed!
With extensive experience in the chartered accountant public practice sector, Barb brings a wealth of knowledge from her previous roles in office management and accounting services. Now stepping into the role of Business Services Accountant, Barb is looking forward to preparing and providing you with crucial financial and accounting services while supporting your business. In her spare time, Barb enjoys music, attending live shows, hitting the gym, and spending time with friends and family. |
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Born and raised in the Hutt Valley, Jared graduated from Victoria University with a Bachelor of Commerce, majoring in Accounting and Commercial Law.
Over the past decade, he has amassed extensive experience working across various industries, from medium to large-sized companies. As our new Business Services Accountant, Jared looks forward to providing essential financial and accounting services while offering insightful strategic advice to support and nurture the growth of your business. Outside of work, Jared enjoys playing social cricket and watching Formula One motorsport. |
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TAX QUESTION OF THE MONTH: |
grand QUESTION: Bill is a self-employed builder who is registered for GST. He inherited a ute from his grandfather, who also ran a building business. Bill would like to introduce the vehicle into his business at the current market valuation of $31,000 and claim the depreciation.
If you inherit a vehicle and introduce it to your business, can you claim depreciation? ANSWER:
A depreciation deduction is available for an asset if a person owns the asset and it is used (or available for use) in deriving assessable income, or in carrying on a business that aims to generate assessable income. The amount of depreciation deduction is calculated with reference to the cost or adjusted tax value of the item.
Upon distributions from an estate, there are 2 transfers of property, 1 - the transfer of the deceased person’s estate to an executor or administrator, and 2 - once the estate is distributed, the transfer of property to beneficiaries who are entitled to receive the property under the will or the rules governing intestacy. The starting point is that both transfers are treated as occurring at market value.
Rollover relief may apply on the second transfer that occurs on the distribution of the estate (effectively treating the distribution to the estate to be at market value at date of death as well). This relief applies where tax-base property is transferred on a person's death and the only beneficiaries of the deceased are close relatives of the deceased or tax-exempt charities.
In summary, the individual can depreciate the ute: - based on cost at market value on the date of his grandfather's death if rollover relief applies; or
- based on cost at market value at the date of distribution from the estate if rollover relief does not apply.
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IRD UPCOMING TAX PAYMENT DATES |
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