Withers Tsang Celebrates 21-Years & Year End Tips for Business owners
Thank you for being a part of the last 21-Year journey with Withers Tsang & Year End Tips for Business Owners
March, 2019
Withers Tsang celebrates its 21st birthday of providing Property, Business and Tax Advice.
We sincerely thank all of you who entrusted us to look after your affairs and supported us through this amazing journey.
As part of this celebration we continue to keep you updated through our website, LinkedIn [remember to follow us], Insights, Articles, Contributors to industry related magazines and the new Withers Tsang online bi-monthly Magazine.
During the year Withers Tsang will hold a number of Events and joint Partnership events - It’s another full year Withers Tsang look forward to sharing with you.
In the meantime, read what you can do to arrange a tax purchase and some Year-end tips for you to get ready for the new financial year.
Short paid your taxes?
If you have short paid 2019 Provisional Tax during the year or have difficulty paying 2018 Terminal Tax by the due date, it may be more cost effective to arrange “tax purchase” through a tax intermediary.
It reduces the amount of use of money interest payable and eliminates late payment penalties in most cases if you have short paid your taxes throughout the year.
The interest rate differential is usually 1% lower than the IRD use of money interest rate.
The only catch is that you have to arrange the “tax purchase” within 75 days post the due date to avoid late payment penalty.
We can help to arrange the “tax purchase” for you. Please contact one of our Team or Kelcy Pou in our office: email kelcyp@wt.co.nz. Alternatively, call her on 09 376 8860 Ex.230.
Year End Tips for Business Owners
Actioned by 31 March
Debtors and Bad Debts
Review your aged debtors list. Write off any debt you have been chasing for a reasonable amount of time but without success to avoid paying income tax on these debtors.
Keep a record of the time and measures you put into collecting the debt in the event of an IRD review.
This cannot be backdated. You have to write off these debt before 31 March.
Writing the debt off does not mean you stop chasing them. You can still refer them to debt collection agency but you only have to pay income tax if the debt is collected.
Minimum Wage & Payroll software update
Minimum wages are going up to $17.70. The Government announced the minimum wage will increase to $17.70 an hour on 1 April 2019 – an increase of $1.20 per hour.
If you are using payroll software, please ensure you have downloaded the latest update.
If you keep manual payroll, please update your calculations as required.
Fixed Assets
Review your fixed assets schedule in your previous years’ financial statements.
Remove all obsolete, non-functional assets and any assets you have written off or disposed of during the year.
Contact us for extra copies if you cannot locate yours.
Stock
Trading stock on hand must be calculated based on its cost as at 31 March.
Please complete a physical stock-take by 31 March.
Write off any obsolete stock before 31 March.
Work in Progress
Write off any known unrecoverable costs before 31 March because any un-billed work will be included as taxable income.
Repairs and Maintenance
You can claim repairs as long as the work is completed before 31 March but invoice payable on April 20th.
Subject to some provisions, you can purchase any asset item and claim as repairs if the cost is below the $500 threshold per invoice total.
