Recent Blog Posts

Changes to claiming deductions for running a motor vehicle in business

11th July 2018

Changes have been made to some of the ways that motor vehicle operating costs can be claimed for business purposes, effective for the year ended 31 March 2018, but practically coming into effect for the 2019 tax year.

The three methods to claim deductions for running a vehicle are;

1. The business (other than a sole trader) owning the vehicle and paying fringe benefits tax (FBT)

2. The business claiming a rate per kilometre used for business purposes.

Accountants struggle with IRD

27th June 2018

We have been experiencing issues with Inland Revenue in the recent times, and it seems we are not the only ones! The article below was published on Stuff website yesterday

Accountants are complaining they are facing big problems logging on to Inland Revenue's MyIR tax system, with one saying the department appeared to be in a state of crisis.

John Cuthbertson, New Zealand tax leader at Chartered Accountants Australia and New Zealand, said it was aware from a number of sources of widespread problems.

Update regarding MTM and Dowse Murray

18th April 2018

With the new financial year and its milestones, a review of changes affecting our business and you include the following.

Lucy Davis works in the office three days a week – Monday, Thursday and Friday, and at home on Tuesday afternoon. Her direct contact phone number is 04 909 7150. Only on a Wednesday you may not be able to contact her.

IRD services unavailable

13th April 2018

IRD will make making some important changes to their systems, as part of it between 3pm Thursday 12 April and 8am Tuesday 17 April you will not be able to:

  • Access myIR Secure Online Services, or
  • Contact them through their contact centres
  • Go to their website for more information.

    Events and dates to note for first quarter

    11th April 2018

    The 2018 financial year has ended, allowing for annual results and taxation to be finalised. In conjunction with that, the events and dates to note for the first quarter include:

    Dividends to 2018 due date 20 April 2018:

    For dividend RWT for dividends to apply to the 2018 years

    Provisional Tax installment 3 due on 7 May 2018:

    With tax changes, if payments of required instalments have been made, interest does not apply. After this date, for residual tax amounts greater than $60,000, interest begins.

    AIM* Accounting Method for paying provisional tax

    2nd March 2018

    (*AIM is The Accounting Income Method)

    Receiving extensive publicity, IRD has introduced a new method for certain businesses to calculate and pay their provisional tax obligations, commencing from the year beginning 1 April 2018.

    Business Insurance Cover

    14th December 2017

    We often get asked about business insurance, especially in regards to business succession planning. Here is a general outline of the most common business insurances available (it is not designed to cover all).

    Key Person Cover

    Purpose: To protect the company against the financial impact of a permanent or long-term loss of a Key Person.

    Policy Ownership: Owned by the Company

    Type of Cover

    Tax changes to be introduced under our new Government

    14th December 2017

    Any article describing tax changes inherently suffers from being out of date quickly, replaced by subsequent changes, new announcements or other measures.
    During 2017 for instance, there were more than a dozen changes in the tax system, at least two of which superseded changes announced earlier in the year.
    With the change in Government and the vast uncertainty of what they will do in the next budget round and find from the tax working group recently established, there is even more uncertainty.

    Forming a company in New Zealand soon to be cheaper

    21st June 2017

    The companies office has advised that its fees to form a company in New Zealand will cost less overall starting from 1 July 2017. The existing charges to form the company comprising name reservation and company incorporation of $160.22 (incl GST) will reduce to $132.25, a reduction of $27.97. This is noteworthy as it's extremely rare for prices set by a government agency to actually reduce.

    New Mileage rates announced for 2017

    22nd May 2017

    The Commissioner of Inland Revenue has announced that the mileage rate for reimbursement of business miles increased by one cent to 73 cents per kilometre. This rate applies for the year ended 31 March 2017, though use of the previous year’s rate of 72 cent will not require amendment. This rate can be used for the current year until the Commissioner amends it.