The annual checklists are ready for you to complete and bring in with your information, so that we can get your 2022 accounts and tax returns done. Please remember to wait until you have your interest and dividend slips. Please sign the checklists, as this gives us permission to do the work.
The checklists are also available on our website on our Resources page.
End of year tax planning:
There are several things you can do to help us get your annual accounts correct including:
- Review last year’s Schedule of Fixed Assets, let us know if any assets have been scrapped, sold, or traded in.
- Do a stock take and remember to value the stock using GST exclusive prices. You can use Cost, Replacement Price, or Market Value to calculate the value of your closing stock, we recommend cost for most situations.
- Bad debts: make sure that any bad debts have been written out of the debtors’ ledger by the 31 March 2022, so that we can claim them as an expense.
- Count livestock on hand on 31 March 2022.
Rental Property Interest Changes
If you buy a rental property any time after 27 March 2021 you can no longer claim interest on a loan taken out to purchase the property.
If you bought the property before 27 March 2021 and had an existing loan, the amount you can claim on interest is as below.
New legislation for the new Anti-Money Laundering and Countering Financing of Terrorism Act 2009 came into effect on October 1 2019. This means we need to formally gather information to verify the identity and address of our clients.
If you haven’t done this already, we may be contacting you to bring in your passport or drivers licence and proof of address not more than 3 months old such as a utility bill or bank statement.
For donation tax credits, you will have the option to submit receipts online during the year. This will help you avoid missing out on a refund for donations if, for example, at the end of the year you’re unable to find all your donation receipts and run out of time to get a copy.
Refunds will still be issued at the end of the year.
Flexitax: Pay when it suits you, not when IRD tells you to
We would like to make our clients aware of an IRD-approved payment option being offered by Tax Management NZ (TMNZ) that provides greater flexibility around how and when you make your income tax payments, without incurring late payment penalties.
Those who have terminal to pay on 7 April due to underpaid provisional tax for the 2021 income year may want to consider using Flexitax
Deadlines – Clients with a 7 April terminal tax date have until 18 June to settle their 2021 income tax liabilities using Flexitax. If you have a 7 February terminal tax date, you have until 18 April.
Please contact us if you would like to know more about TMNZ and its payment options.