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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.
Ever feel you're the meat in a tax sandwich?
Are you worried about paying your terminal tax bill on 7 April?
We understand how terminal tax can sometimes put pressure on your business' cashflow. Even more so, if it's worked out that you also owe Inland Revenue (IRD) for interest and late payment penalties on the unsettled liability. And, if you add into the mix that looming provisional tax payment due on 7 May (the final instalment for the 2018 year)… well, it can add up to a few sleepless nights, right?
If this describes your situation, stop losing sleep and pick up the phone. Let's look at the issue squarely, run the numbers on your options and take prompt action before your tax bill escalates.
It's the little things that make up the big things. Here's a list of ten traits of some of the movers and shakers in the world today (and from the past).
1. They Stay Healthy
Health is make-or-break. If you have it, your life will take on meaning like you couldn't otherwise know; but if you don't have it, you will only accomplish a comparatively small percentage of what you otherwise would be able to. Like a dedicated runner who sees the need to count calories, log miles, and track their monthly progress when it comes to hitting the pavement, a good leader has to stay on top of their health to unlock those higher abilities to make good business decisions and wise choices. It all starts with managing your health.
2. They Value Down Time
The greatest leaders have always known how to make time for themselves. They went home after work and enjoyed time with their families. They understood priorities being properly managed. They perfected the art of relaxation and were thus able to push forward much harder, despite their imperfections and vices. If you are constantly running out of steam, you won't be able to build a solid, long-lasting business.
Recent Posts
- 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
- Protect Yourself and Your Data - Proactive Steps for Living Safely in the Digital Age
- Tax residency status requests from financial institutions
