March Updates 2019 – Take Note

Take Note

Hello!

The annual checklists are ready for you to complete and bring in with your information, so that we can get your 2019 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.

Additional Services

Did you know we offer additional services to preparing financial statements and tax returns. Let us know if any of the following services would be useful to you.

Quarterly Coaching
Complimentary Client Review
Trust Review
Business Plan
Preparation of Budget and/or Cashflow Xero Training – Individual and Seminars

Bringing in bank statements

If you usually bring us bank statements, we’d like to get the bank transactions for the year as a download from your internet banking as well. If you don’t know how to do this, pop into the office and we’ll help you with it. We prefer a QIF file but a CSV will do too.

This will make the information in your accounts more accurate.

Rental Losses

Starting from 1 April 2019, the loss ring-fencing rules will mean that if you own a residential rental property, you won’t be able to offset the losses from the rental properties against your other income (for example, salary or wages, or business income), to reduce your taxes.

The losses can be used in future years, when the properties are making profits, or if you are taxed when the property is sold. If you have more than one rental, you will be able to offset losses from one rental property against rental income from other properties.

Pay Day Filing

From 1 April 2019 all employers will have to file a PAYE return every time they pay wages instead of once a month.

To do:

  • Consider changing pay days to fortnightly instead of weekly
  • Make sure you have a MyIR login set up
  • Get birth date and address for all your employees

Have a look at the free seminars and webinars

https://www.ird.govt.nz/campaigns/2018/campaign-payday-filing.html

Personal Tax Refunds

For people earning only PAYE earnings and interest and dividends, the IRD will calculate the tax to pay or refunds automatically and issue a tax notice or send a refund. Please check the details are correct and that the IRD have included all your income.

Make sure IRD have your correct bank account number so any refunds can get to you quickly.

Anti-Money Laundering

New legislation for the new Anti-Money Laundering and Countering Financing of Terrorism Act 2009 came into effect on October 1. This means we’ll be formally gathering information to verify your identity and address.

Next time you’re heading to our office, bring your passport or drivers licence and proof of address not more than 3 months old such as a utility bill or bank statement.

Donations

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.

Accounting income method (AIM) for provisional tax

AIM is a new option for provisional tax. Once you’ve opted in to use it, you’ll only pay provisional tax when your business makes a profit. Contact us if you’d like to discuss this option.

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 2018 income year may want to consider using Flexitax

Deadlines – Clients with a 7 April terminal tax date have until 18 June to settle their 2018 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.

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