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.
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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.
As from today, IRD has announced that it has restored its acceptance of calls from mobile phones to its 0800 numbers. Although it had accepted mobile calls previously it discontinued accepting calls for a sustained period. So it’s back.
This will assist taxpayers who don’t maintain traditional phone services.
In calculating premiums charged to businesses, industry classifications have differing premium rates based on ACC’s assessment of risk, cost and frequency of injury within the industry. Premiums are higher in industries where these are higher. Therefore it is important that your industry classification is appropriate and matches the type of business.
We previously advised that contractors can select any rate of withholding tax with a minimum of 10% when the requirement for deduction comes in on 1 April 2017. More detail about this is now available and reveals that the deductions are more comprehensive than anticipated from the Budget announcements.
Summarily, if you invoice an IT services, recruitment or other labour hire company for your contract services, then the company will be required to deduct withholding tax from all payments to you from 1 April 2017. This change now applies to those contracting through companies.
MTM Accounting is merging with Dowse Murray Chartered Accountants
We are excited to announce the merger of MTM Accounting Ltd with Dowse Murray Chartered Accountants Ltd from 1 April 2017. The merger will enable both firms to improve efficiencies and provide a higher level of service to clients.
This will enable taxpayers, especially close companies and trusts they manage, to consider more widely whether to retain their income in those entities rather than passing that income through to individuals. Until now, since use of money interest applied from August of the financial year for amounts over $2,500, it often made economic sense to account for income individually so as not to incur the interest.
As 2016 draws to a close, we would like to take this opportunity to thank you for your ongoing support and allowing us to work with you on your business goals. We wish you seasons greetings, a happy and safe holiday time, and a New Year full of health, happiness and prosperity.
Levy consultation has completed and the Government has confirmed the following for 2018 and 2019:
Family trusts are a common structure used to secure the family home and other valuable assets from creditors and assist in succession planning and inheritances. It is estimated that 15% of family homes in New Zealand are owned by a family trust.