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Most businesses will give to employees, clients and often charities at Christmas time. From morning teas to elaborate Christmas functions, from cards and calendars to hampers and the latest gadgets, Christmas is a season of giving.
When it comes to claiming tax deductions this Christmas season, there are very specific rules that apply. We have put together this simple guide about tax on Christmas entertainment and gifts to help you through the festive season.
1. Entertainment
There are rules that apply to tax deductions for Christmas parties, year-end functions and other client/customer or employee entertainment expenses. Some entertainment expenses are fully deductible, while some are not. Here are some quick tips to help you:
From April 2019, you must follow new filing procedures for your IR345s and IR348s. Instead of completing these monthly, you will be required to file these every payday in line with your normal employee pay cycles. Yes, that means if for example, you pay your employees weekly, you will soon need to file with the IRD weekly. Please note, the payment date remains the same.
In preparation for this change, we strongly recommend that you look at using payroll software which will automatically file this information for you each pay cycle. Personally, I use and recommend Smart Payroll. The charges are modest compared to the convenience, accuracy and ease of use this cloud based system provides. You may know of alternative systems which do something similar.
We also use Smart Payroll to process payroll for quite a number of clients. For them, the transition to payday filing will happen seamlessly.
In preparation for this pending change, we are happy to assist you with a review of your payroll system and processes. Please contact us to find out how we can help take away your payroll pain and make your life easier.
New Zealanders are jumping onboard the Airbnb craze, turning their spare space and holiday homes into income generating assets. Particularly this year, we have noticed an increase in clients utilising this latest example of the sharing economy in action. While the benefits sell themselves, you may develop a tax headache if you haven't considered your overall tax position and approach. A little extra income on the side can turn into an unexpected tax bill.
What is Airbnb?
Put simply, Airbnb connects people online wanting to rent their property (entire property or a set space within a property), with people who are looking for accommodation. Hosts and travellers from over 190 countries worldwide participate in this online global marketplace.
Can my dog be claimed as a security expense and other curly home office questions…..
11/08/2018 by Paul Martin
It didn't stop at the dog - the same (ex) client tried to convince us that his daughter's pony was required to entertain his clients' children. Other clients have asked to claim other day to day household items - the pot plant at the front door, Sky television, the weekly cleaner and even a new outfit for an important meeting.
Unfortunately for these clients, none of these items were able to be claimed as home office expenses. The rules are very clear regarding what you can and can't claim. However, making a home office claim if you conduct some or all of your business from home is still an effective and legitimate way to reduce your tax liability.
Small businesses can grow in boom times as well as periods of difficulty by working smarter and taking advantage of opportunities. Put these following effective tips into practice to help grow your business.
1. Utilise new technology
Modern technology can save you time, improve productivity and reduce your operational costs. Make use of Facebook, Twitter, Google+ and other social media tools to market your business.
Dropbox is a cloud-based service that can be used for document creation and sharing, while Skype is commonly used for calling or video conferencing.
Protect Yourself and Your Data - Proactive Steps for Living Safely in the Digital Age
26/06/2018 by Paul Martin
These days your personal data is everywhere, and that information is valuable to marketers, hackers and everyone in between. If you want to prevent the unauthorized use of your personal information, you need to take a proactive approach to protecting yourself and your identity.
You can no longer afford to be blasé about your data security - if you are not taking proactive measures to prevent the use of your personal information, you are opening yourself up to all kinds of problems. Here are some tips you can use to protect yourself and your data in this age of data breaches.
As we have been receiving many enquiries about these tax residency status declarations, we wanted to assure you that these are legitimate and further, they are now mandatory to complete. Failure to complete the declarations will result in you being brought to the attention of the relevant worldwide tax authorities.
This is a complex new area of international tax law, and if you have any concerns please contact us to make an appointment to come and see Paul.
Source: Ministry of Business, Innovation and Employment (NZ) www.business.govt.nz
Do you have overseas accounts and investments?
If you have an account with an offshore financial institution, including banks and accounts maintained with certain offshore trusts, upcoming changes will see information about your overseas investments being shared with the IRD.
What you need to know
New Zealand is one of 105 countries and territories that has committed to sharing financial account information to combat global tax evasion. These laws have been in place since 1 July 2017.
From August 2018, the government will receive information about New Zealand tax residents with offshore financial accounts from other countries' financial institutions.
If you have an account with an overseas financial institution (including certain offshore trusts) you'll be required to confirm and disclose your tax residence status and tax identification number (TIN) with the overseas financial institution. This financial account information will be exchanged and will help the IRD verify that everyone is paying the correct tax on these overseas investments.
Debt can be a crippling problem for small businesses wanting to grow or just break-even during difficult times. By reducing debt you'll improve the value of your business, its financial situation, and its ability to continue operating into the future.
Assess your debt situation
Take a detailed look at all of your debts – both current and long term. Evaluate which ones are more urgent and which can be parked until some progress is made.
The key determining factor should be the interest you're paying on your debts. For example, those with the highest levels of interest should be paid first.
"For a list of all the ways technology has failed to improve the quality of life, please press three." ~ Alice Kahn
Although we may be quicker at completing redundant tasks, more time is wasted managing all our different apps and technologies-and more of us live in a near constant state of distraction.
Recent Posts
- Before you plan Christmas for your employees and clients......
- Attention all employers - payday filing soon to be compulsory
- Know your tax obligations before landing in the Airbnb world
- Can my dog be claimed as a security expense and other curly home office questions…..
- 10 quick growth tips for your small business
