Recent Blog Posts

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Any article describing tax changes inherently suffers from being out of date quickly, replaced by subsequent changes, new announcements or other measures.
During 2017 for instance, there were more than a dozen changes in the tax system, at least two of which superseded changes announced earlier in the year.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.

Inland Revenue now accepting mobile calls to its 0800 numbers

1st May 2017

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.

ACC Levy rates 2017/2018 - confirmed rates

23rd March 2017

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.

Tax Changes 1 April 2017- Part 2 (Contractors)

23rd March 2017

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.

Special Announcement: MTM Accounting to merge with Dowse Murray Chartered Accountants

23rd March 2017

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.

Tax changes 1 April 2017- Part 1

3rd February 2017

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.