Keep up-to-date with us and what's happening in the business world |
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- 2025 Annual Accounts Questionnaires - Staff Changes and Guarantee for 2025
- Terminal Tax Reminder - Due 7 April 2025 - Minimum Wage to Rise From 1 April 2025 ($23.50 per hour)
- Xero Tip of the Month: The Quick View Functionality Tool - Welcome to the Team: John & Hassan
- Tax Question of the Month: Treatment of Tax Losses When PAYE and GST Liabilities Are Written Off - IRD Upcoming Tax Payment Dates |
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As the end of the financial year approaches, we would like to inform you that your End of Financial Year (EOFY) Questionnaire(s) will be sent to you via email this year, within the next week. This updated format is designed to streamline the process, making it more convenient for you to provide the necessary information we need to process your tax returns. We will also send out a guide on how best to use the Questionnaires. Please keep an eye on your inbox for more information. If you have any questions or concerns in the meantime, feel free to contact us at 04 970 1182. We're here to help! |
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STAFF CHANGES AND GUARANTEE FOR 2025: |
Businesses are constantly evolving, and one of the biggest factors driving change is staff turnover. Whether due to resignations, promotions, restructuring, new hires, or the development of new skills, shifts in personnel can significantly impact a company’s operations, culture, and overall success.
When experienced employees leave, there can be a temporary dip in productivity as remaining staff take on extra responsibilities. Handovers to new staff are often not straightforward, as hiring new team members takes time, —often eight to ten weeks—compared to the four-week notice period a resigning staff member can provide. However, on the positive side, fresh talent can bring innovative ideas and improved efficiency, helping a business grow and adapt.
Long-term employees often build strong relationships with clients, and their departure can affect customer loyalty, as clients may be hesitant to work with anyone else, even though the business is still run and operated by the same management team.
At All Accounted For and Accounting For Schools, we have experienced our share of staff changes over the last twelve months, with many of those team members having been with us for several years. Staff changes are inevitable, and the reasons for these shifts in 2024 have been varied, including professional growth, new challenges, relocations from Wellington, and personal matters. While we are sad to lose a team member, it does provide the opportunity to change our approach. Unfortunately, this has not a smooth process, which has impacted on our efficiency; we were not prepared to sacrifice quality for speed, as errors can lead to adverse tax outcomes.
In addition, 2024 has been especially challenging for our Director, Ben. His family suffered the tragic loss of Eileen Paice, his wife’s mother, and shortly afterward, the family assisting Chas Paice, who was diagnosed with cancer. Managing the family dynamics of four school-aged daughters while supporting ailing parents and overseeing the business has proven to be incredibly difficult. Ben and his family have deeply appreciated the support, understanding, and comfort extended by their clients and friends during these trying months.
2025 & New Turnaround Guarantee
Looking ahead to 2025, the recent hiring of three Chartered Accountants—John, Hassan, and Dominique—and a new Practice Manager, Chrissy, will enable us to deliver both efficiency and quality. The appointment of Harpreet as our Xero & Cloud Systems Manager ib October will also allow us to focus more on value-added outcomes for our valued clients and friends in 2025 and beyond.
As a result, we will be offering a turnaround guarantee for the completion of annual accounts and tax returns starting 1 April 2025. If we have received all the required information and the accounts are not delivered within four weeks, we will discount our service by 50%. If the accounts are not delivered within six weeks, they will be provided at no cost.
It is fair to say that 2024 has been the most challenging year for All Accounted For and Accounting for Schools since its foundation in 2008. The team extends our sincere thanks to all for their patience and understanding as we navigated through personnel changes and refinements to our approach. |
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TERMINAL TAX REMINDER - DUE 7 APRIL 2025 |
Just a reminder that your terminal tax payment is due on Monday, 7 April 2025. We will be sending out terminal tax reminder letters via email later this week. Please ensure that your payment is made on or before the deadline to avoid any penalties or interest charges.
If you will have any difficultly making the payment in full, please contact us as soon as possible at (admin@aafl.nz or 04-970-1182) to discuss options, such as instalment arrangements or deferring through Tax Management NZ. |
MINIMUM WAGE TO RISE FROM 1 APRIL 2025 ($23.50 PER HOUR) |
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The minimum wage will be rising to $23.50 per hour from 1 April 2025, a 1.5% increase from the current hourly rate of $23.15. The Starting-Out and Training minimum wage rates will both increase to $18.80 per hour, remaining at 80% of the adult minimum wage.
Before this change takes effect, it's important to: - Advise your impacted team members of the increase
- Check your payroll systems and processes
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Update your employment agreements if relevant
- Update your business budget.
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Costs are increasing Even if you don’t employ one of the 175,000 Kiwis who earn minimum wage, this may impact your business. Wages rise steadily over time, and employees who missed out on a pay rise this year will probably expect one next, if your business has been thriving. In addition to the rising cost of labour, inflation is forecast to 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. Time to review your pricing
Is it time to put your prices up? 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 also 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.
Need to review your pricing? Our team are here for you; we have a number of pricing tools available for clients to utilise. Get in touch, we are here to help. |
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XERO TIP OF THE MONTH: THE QUICK VIEW FUNCTIONALITY TOOL |
Managing bills just got easier! With Xero’s new Quick View functionality, you no longer need to click through individual bills or juggle multiple tabs!
Now, you can view and approve bills directly from the Quick View screen. This streamlined approach is a more efficient way to stay on top of your school’s payables—ideal for schools with multiple bills to process each month. Save time, reduce hassle, and ensure timely approvals with this handy feature! To access this feature, simply click the icon on the far left under the "View" tab next to the bill you want to check, and voilà — the transaction details will pop up right there!
To approve a bill, go to the "Awaiting Approval" tab, select the bill/s you want to approve by ticking the box on the left-hand side, then click the 'Approve' button. |
WELCOME TO THE TEAM: JOHN & HASSAN |
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Meet John, a local Wellingtonian whose journey to Accounting and Finance is as unexpected as it is impressive. Originally trained as a chef, he spent years perfecting dishes and navigating the fast-paced hospitality industry. However, his natural talent for numbers and deep passion for problem-solving led him to switch careers, ultimately pursuing Accounting and Finance.
Now, with a Bachelor of Commerce (BCom) from Victoria University and a full Chartered Accountant (CA) qualification, John brings extensive experience from the public practice sector, having worked as a Financial Accountant across various industries. His diverse background allows him to approach financial challenges with both creativity and analytical insight, making him a valuable asset to our team and clients alike. In his spare time, John enjoys fishing, sports, and spending time with his family, especially his 10-week-old daughter. |
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Meet Hassan, originally from Malaysia, who moved to New Zealand in 2017 to pursue opportunities in Accounting and Finance.
After settling in Auckland, he earned a Bachelor of Commerce (BCom) from the University of Auckland and obtained his Chartered Accountant qualification.
Hassan is passionate about empowering businesses with strategic advice and clear financial insights. His experience spans both the public and private sectors, having held roles at Audit New Zealand and KPMG Wellington's Private Enterprise department.
Hassan’s dedication to providing expert guidance is aimed at helping businesses thrive.
When he's not tackling financial challenges, Hassan enjoys the vibrant Wellington lifestyle, often walking along the harbour, engaging in friendly table tennis matches, and cherishing time with family and friends. |
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TAX QUESTION OF THE MONTH: |
QUESTION: A GST registered company runs a café and has three employees. The company struggles to makes sales in the income year due to economic conditions and makes a tax loss of $20,000.
The company makes a very small profit for the next income year, however, the company struggles to meet its GST and PAYE liabilities. Lou, the sole shareholder of the company, makes a successful application to Inland Revenue for financial relief, and the company’s GST and PAYE liabilities totaling $2,500 are written off.
Lou notices that Inland Revenue have reduced the amount of tax losses carried forward in the company. He was aware that tax losses are extinguished when income tax is written off, however, his application for financial relief was only for GST and PAYE.
Are tax losses extinguished when GST and PAYE liabilities are written off?
ANSWER:
Yes, tax losses are extinguished when GST and PAYE liabilities are written off following an application for financial relief under s 177C of the Tax Administration Act 1994.
When Inland Revenue writes off “outstanding tax” for a taxpayer with tax losses, Inland Revenue must reduce the taxpayer's available tax losses. The amount of the reduction in tax losses depends on the type of taxpayer. When the taxpayer is a company, the tax losses are reduced by the amount of the tax written off divided by 0.28. For other taxpayers, the tax losses are reduced by the amount of the tax written off divided by 0.33.
In this case, the amount of GST and PAYE liabilities written off is $2,500. Therefore, the company’s tax loss is reduced by: $2,500 / 0.28 = $8,929. Any remaining tax losses may be carried forward by the company.
Note that recent legislative amendments to s 177C mean that if a taxpayer has residential rental losses under s EL 4 of the Income Tax Act 2007 or bright-line losses from the disposal of residential property under s EL 20, those losses may also be extinguished if tax is written off.
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IRD UPCOMING TAX PAYMENT DATES |
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