MWB Winter 2016 Newsletter
Risk and rewards
Underpaid income tax?
Maybe you did not keep up with your provisional tax payments throughout the year? (oops) Perhaps you did not end up paying enough because you had a better-than-expected financial year (yay! but damn, an increased tax liability). It could be that seasonality or volatility make it difficult to forecast your provisional tax payments.
Whatever the case, owing the taxman additional income tax can put pressure on your business’ cashflow. With Inland Revenue’s interest clock continuously ticking at 8.27 per cent (and at 9.21% for tax debt incurred up until 8 May 2016) while that tax remains unpaid, the cost can quickly add up.
An option we have discussed before is tax pooling. It is a service designed to reduce interest costs and provide payment options for provisional taxpayers.
How does it work?
For underpaid income tax, you can settle what you owe IRD by paying through a tax pooling intermediary such as Tax Management NZ (TMNZ) at an interest cost lower than the interest IRD charges on underpaid tax.
New GST online filing
The first steps towards tax simplification lie in the new option for taxpayers for online filing of GST returns. Inland Revenue has been working with two software providers to pilot a service so taxpayers can file their GST returns directly from their business software. At present this can be used for GST only returns or for combined GST and provisional tax returns, although this option is not open to taxpayers who use the ratio option to calculate provisional tax.
Note: these dates apply to those clients for whom we prepare tax returns. Different dates will apply for those clients for whom we don't prepare returns. Please ask us if you'd like more information.
2016 Client questionnaires
2016 client questionnaires are loaded on our website under the resources, please download the questionnaire(s) that is relevant to your business. Once completed, please forward with your records to our office. Please ensure all parties sign the relevant questionnaire(s).
Special Alert Health & Safety 2015
The new health and safety legislation has passed and we all need to start planning.
Your business needs to be compliant by 4 April 2016, when the new Health and Safety at Work Act takes effect, replacing the Health and Safety in Employment Act 1992.
A lot of information is still to come on how the Act will operate. Regulations will be released to clarify how it will work for different industries. Work Safe New Zealand will provide guidelines to businesses and workers.
MWB Spring 2015 Newsletter
Health and safety
The Health and Safety Reform Bill, which started its slow progress last year, took another step forward in late July with its second reading in Parliament.
The Employment Standards Legislation Bill has been introduced to parliament, proposing changes to strengthen enforcement of employment standards. This will introduce tougher sanctions for breaches and greater accountability for people and entities associated with the employer — such as directors, senior managers, legal advisors — if they are knowingly involved when an employer breaks the law.
Double tax agreement with US
Are you a US citizen living in New Zealand? If so, your income is subject to both USA and New Zealand income tax requirements.
ACC CoverPlus Extra – are your levies overdue?
This year ACC has cancelled unpaid CoverPlus Extra policies that were overdue. In July they had cancelled about 2,600 policies and expected to cancel the remaining 1,600 policies with unpaid CoverPlus Extra invoices in August.
MWB Ltd Autumn 2015 Newsletter
Employment law changes
The government has made some major employment relations changes, effective from 6 March 2015. Changes target flexible working arrangements, rest and meal breaks, continuity of employment for vulnerable employees upon restructuring, the good faith provisions, collective bargaining, and how the Employment Relations Authority gives its determinations.