Government Tax & Other Useful Websites. : Changes to Provisional Tax. 1.
The elimination/reduction of Use of Money Interest (UOMI) from 1 April 2018 What is UOMI? It is interest paid/received on the difference between the amount of provisional tax paid and the actual amount of tax liability a business owes. Who will benefit? Small to medium businesses with turnover less than $5 million. What will change? Currently businesses estimate the amount of tax they think they will pay for the coming year and pay that amount in 3 instalments. What does this mean for our clients? As we use Xero, there's nothing our clients need to do. What should happen as a result of the changes? Small to medium businesses should find paying provisional tax easier to deal with and their cash flow should also improve. 2.
Contractors will be able to choose a withholding rate that suits their individual needs, instead of the tax rate being fixed. 3. Some of the other changes include: We keep up to date with the latest tax and accounting pronouncements and changes. Sales of Residential Land Tax. The 'bright-line rule' (or 'bright-line' test) applies to residential properties purchased on or after 1 October 2015.
This means you will pay tax on income you earn if you buy and sell a house within two years, unless it is your main home or another exception applies. Everyone who buys, sells or transfers New Zealand property must provide a New Zealand IRD number to their property lawyer or conveyancer during the land transfer process, unless they are eligible for the main home exemption. If applicable, you will also need to provide your taxpayer identification number (TIN) from any overseas countries where you have to pay tax on your worldwide income. Applying for an IRD number If you don't have an IRD number, you can apply for one and the IRD will send it to you within 10 days of receiving your application.
To apply for an IRD number, you need a fully functional New Zealand bank account. Tax Checklists. : Depreciation. Tax Accountant Auckland. Accountants use a variety of tax tools every day.
Here are some that we use that may help you. : Business Structures. As accountants, our clients often ask us what is the best way to structure their new business.
The table below summarises the 4 main business types in New Zealand: The company is a very popular business structure in New Zealand. This is because the Director's personal assets are protected due to the limited liability nature of companies. As at June 2015 there were 550,000 limited liability companies registered. This means the company is a separate legal entity so the company's assets are treated separately to the Director's assets. : GST. The GST (goods and services tax) is a 15% tax added to the price of most goods and services in New Zealand, most imported goods and some imported services.
Why do I have to pay GST? GST is a tax levied by the government that you collect on behalf of the government. When must your register for the GST? When you carry on a taxable activity and your turnover (gross income) for the past, present or future 12 months was, is or will be $60,000 or more. Can you voluntarily register for the GST even if your turnover is less than $60,000? Yes, you can. : Provisional Tax. Many of our clients find provisional tax confusing.
One way of looking at it is to compare it to PAYE (pay as you earn) that employers deduct from the regular salary or wages they pay their employees. For people who don't deduct tax on a regular basis, provisional tax allows them to pay instalments so they meet most of their tax obligations throughout the year rather than facing a large tax bill at the end of the financial year. Those who don't have tax deducted during the year include business owners, the self-employed, contractors, rental property owners and those who receive income from a partnership, estate, trust or from overseas.
Small Business Accounting. We are Chartered Accountants with a high level of integrity and are committed to providing a quality service for you, our clients.
We provide services in the following areas: : Chartered Accountants. Actually, the answer is 'no' as explained below.
A Chartered Accountant (CA) is a qualified and experienced professional who will take good care of you and your business. To become a CA today, a person must hold a degree and have studied subjects such as accounting, company and tax law at university for at least 3 years. After graduating, he/she must also pass exams at post university level including financial and management accounting, taxation and auditing. : How to form a Company. If so, there are a number of steps involved as described below: Anyone wishing to create a company for their business will first need to reserve a company name with the Companies Office.
This name must not be the same as that of another company. The company name will be reserved for 20 working days. This reservation can be extended for a further 20 working days if required to complete the company formation process. The company incorporation process involves completing a company application and returning signed consent forms to the Companies Office. Accounting Firm Auckland. Who we are We are Steve and Mary Mahoney, your Auckland Chartered Accountants.
We have worked in the accounting profession in NZ, the UK and Australia for the past 16 years. Before that, we ran our own successful small business and know the challenges small to medium business owners face. What we do. Chartered Accountants.