My business is making a loss. What does this mean for tax? Your business is considered making a loss when your business’s expenses are greater than its income. In this case your business will be exempt from paying income tax. If you find your business in this position, you may be able to carry the...Read More

Does leaving New Zealand change my tax responsibilities? As a New Zealand tax resident if you are planning on leaving the country there are a few things you will need to work out prior to your departure. You will need to work out whether your tax residency status will change, if double tax agreements will...Read More

Update on prohibited cash transactions. From 11 May 2023, a prohibition under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act), will prohibit cash transactions for specified high value goods. This means that any person who is in trade/ business that buys or sells any of the below high value goods cannot...Read More

Rules for tax invoices are changing on 1 April 2023. The new rules surrounding tax invoices have recently been released by Inland Revenue. These rules come into action on the 1st of April 2023. The new term ‘taxable supply information’  is a more general requirement, and will be replacing the current requirements of  ‘tax invoices’. ...Read More

Tax changes to encourage build-to-rent long term rentals. The Government is proposing a tax change to encourage more build-to-rent long term dwellings in order to assist with the New Zealand housing crisis. This tax change will exempt landlords from the interest limitations rules and applies to new and existing build-to-rent developments. This exemption will apply...Read More

Credit and debit interest rate change on 30 August. IRD regularly reviews rates to ensure they align with current market interest rates. As of August the 30th the interest rate on overpaid (credit interest) and underpaid (debit interest) tax will change. The new rates are: debit interest – 7.96% (up from 7.28%)credit interest – 1.22%...Read More

As a contractor/ self employed do I need an accountant? It’s understandable why so many people choose self employment and contracting work, with the greater independence, higher earnings, and control over lifestyle it offers. It is clear to see why so many choose this route. With the added freedom that self employment provides, it also...Read More

As an employee, can I claim expenses from working at home? Due to COVID-19 working from home has become very common for employees. It raises the question as to whether all the expenses resulting from this can be claimed? (Such as power, internet and printing). In many instances employees are expected to absorb these additional...Read More

The newly implemented Cost of Living Payment What’s it all about? In the 2022 Budget the government announced the ‘Cost of Living Payment’ scheme in response to the increased cost of living. For those eligible, individuals will receive up to $350, with payments split into 3 monthly payments of $116.67.  To be eligible individuals must:...Read More

It’s 2022 and the ever-changing taxation landscape for your rental property has made it more complicated than ever to manage your own returns.Read More

Covid-19 payment review underway. The IRD are now reviewing the accounts of a sample of customers who received one or more of: -Resurgence Support Payment -Covid-19 Support payment -Small business Cashflow Scheme Loan They are reviewing it to ensure customers met the relevant eligibility criteria and have used payments in line with the terms and...Read More

IRD Interest on tax overpayments and underpayments (UOMI) increase. If you overpay any tax the IRD pay you back with interest. If you underpay tax, the IRD charge you interest. The IRD may also charge a penalty with interest. This is often called use of money interest, or UOMI. If your ability to make a...Read More

Kilometre rates for 2021- 2022 Income year. The table below outlines the rates you can claim for business motors vehicle expenditure for the 2021-2022 income year. The Tier 1 rate is a combination of your vehicle’s fixed and running costs for the business portion of the first 14,000 kilometres travelled by the vehicle in a...Read More