Amalgamation Could Be The Solution

As businesses expand, a common decision is whether to create new companies to accommodate new ventures, risks, products and/or acquisitions. A well-designed group structure enables a ‘parent’ company to create distinct entities that operate independently.

FBT and Home to Work Travel

A common complaint made by employers is that the amount of time it takes to meet their FBT obligations is disproportionate to the amount of tax it actually generates. This frustration is arguably borne out in the number of mistakes that are often made when calculating the amount of FBT payable.

Protect Your Reputation

Over the last 18 months there have been a number of businesses fall over – which in and of itself has not been surprising given the recent economic climate. However, one element that serves as a warning for us all is the flow on effect of those failures. Not just in a tangible sense, where suppliers or ‘subbies’ are left out of pocket and can’t survive, but where acquaintance businesses can be tarred with the same brush.

The LTC Option

If a company sells a capital asset (e.g. commercial land) and derives a non-taxable capital gain, it’s reasonable to expect the shareholders to want access to the cash. However, the problem often arises that in order for a capital gain to be distributed tax-free, the company needs to be wound up. This is a result of the fact that if a capital gain is distributed in the absence of a wind-up, the distribution comprises a taxable dividend.

The Depreciable Asset

The depreciation rate for non-residential buildings has been reduced to 0%, effective from the 2024 / 25 income year. However, commercial fit-out remains depreciable. This makes the distinction between the two important because it is the difference between not being able to deduct any depreciation at all versus being able to claim a good proportion of a building’s cost as ‘fit-out’.

New Zealand: A Strategic Opportunity for APAC Investors

New Zealand, known for its natural beauty, also offers a robust and attractive environment for business, and can be particularly attractive to investors from the Asia-Pacific (APAC) region. The country’s top position in the World Bank’s Ease of Doing Business index highlights the streamlined nature of its regulatory framework.

New Zealand's Growing Trade Ties with ASEAN

New Zealand's trade relationship with the Association of Southeast Asian Nations (ASEAN) has been significantly bolstered by the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). Since its implementation in 2010, AANZFTA has paved the way for enhanced economic cooperation and mutual growth between New Zealand and ASEAN member states.

Impact of the Changes in Marginal Tax Thresholds

For the first time since 2010, personal tax rate thresholds will change from 31 July 2024. The change was announced as part of the 2024 budget. When personal tax thresholds are not regularly adjusted to take into account inflation or wage growth, individuals end up paying a higher percentage of their income in taxes over time. As such, adjusting these thresholds arguably reverses past tax increases.

New Product Lines

It is important to regularly ask whether you are providing the products that your customers want and whether there are any new products that you could provide to ensure you are evolving with changing times as you look for the next income stream.

Donating Trading Stock

What was a temporary tax concession relating to donated trading stock has now become a permanent one thanks to the enactment of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 on 1 April 2024.

Employee Share Schemes

For businesses that trade through a company, circumstances might arise in which the shareholders consider selling a minority stake in the company to a key employee or group of employees. This could be to ensure that key talent is ‘locked in’ for the long term, as a means of succession if the existing shareholders are looking to wind-down or simply as a means to link effort to reward.

Balancing the Benefits and Risks of the Government’s Fast-Track Policy

The recent modifications to the government’s fast-track policy have sparked significant debate among business leaders, policymakers, and the broader public. As these changes attempt to strike a balance between accelerating infrastructure development and maintaining stringent environmental and community safeguards, it is crucial to consider the implications for medium to large enterprises across various sectors.

Stay Ahead: Don't Miss Your AML Audit Deadline!

Finalising your Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) audit before the due date is crucial for all New Zealand reporting entities. The importance of meeting this deadline extends beyond mere compliance. Don’t let it affect the integrity, reputation, and operational efficiency of your organisation.

GenAI – A Leap Forward

Artificial intelligence (AI) is the new buzzword at the moment, with business leaders touting its importance and the significant impact it will have on the way we conduct business. The reality is that AI has been around for a while, but in the past few years has taken a great leap in terms of its usefulness and accessibility for the general public.

Automation and Accounting

All too often we get into a routine without stepping back and considering why we are doing things. The same goes with our accounting systems and processes. Your finance team is probably busy keeping on top of their day-to-day workloads but has consideration been given to how productivity can be improved through the use of readily available software?

Changes to GST for the Platform Economy

In March 2023, legislation in relation to the platform economy was passed, affecting the GST treatment of services made through an electronic marketplace from 1 April 2024. We saw something similar back in 2019, where the GST rules on imported goods were amended to treat operators of online marketplaces as liable for returning GST, as opposed to individual sellers. Now the rules are being expanded to include listed services, such as accommodation, ride-sharing services and food delivery services.

Budget 2024 - Our View

The New Zealand 2024 Budget was handed down on 30 May at 2pm.

The Budget for 2024 demonstrates fiscal responsibility, provides long-awaited tax relief for 83% of New Zealanders, and allocates funds towards enhancing frontline public services for improved outcomes.

Rollover Relief or Grief?

The main change is that the bright-line period will now decrease from 10 years for existing properties or 5 years for a new build, to 2 years which applies to disposals on or after the 1 July. Rollover relief rules applying to bright-line transfers of residential land have also had a complete makeover, with the new criteria applying from 1 July.

De Facto Relationship or Not?

The Working for Families Tax Credit (WFFTC) is a notoriously complex scheme when it comes to determining eligibility and quantifying entitlement. This leads you to wonder how well the scheme is policed by Inland Revenue, and whether fraud is able to ‘fly under the radar’.

Beware of Deemed Dividends

The concept of what is a “dividend” is very broad and starts with the default proposition that any transfer of value from a company to a shareholder is a dividend. That concept includes the simple scenario of an interest free loan to a shareholder or a person associated to a shareholder; which can also include loans between companies.

End of Year Write-Offs

As increasing interest rates have bitten and with industry sectors such as retail and construction not performing as strongly, some businesses are struggling. As the end of the financial year approaches, now is a good time to assess whether any of your accounts receivable need to be written off as ‘bad’.

Trust Disclosure Regime

After the introduction of the Trust Disclosure rules in March 2022, in November 2023 Inland Revenue released a high-level summary (in the form of a 40-page report) of insights from the first year of reporting. While tax advisors and clients alike may have begrudgingly completed the disclosures initially, the statistics may prove to be interesting.

Covid Fraud

Given the necessity of providing fast relief, the wage subsidy scheme provided during COVID in NZ was largely based on trust. Today, MSD operates a Wage Subsidy Integrity and Fraud Programme aimed at ensuring the integrity of the payments and who received them.

Research & Development Regimes

New Zealand currently has two different tax concessions aimed at encouraging research and development (R&D). Namely, the Research and Development Loss Tax Credit (RDLTC) and the Research and Development Tax Incentive (RDTI).

Australia’s Tax System Compared

With the recent inflation driven surge in the cost of living, apparent increase in crime and seemingly constant complaints about the education and health systems, some New Zealanders are considering packing up shop and moving across the ditch to Australia.

Succession Planning for Legal Firms

Succession planning is an often underestimated yet critical component of a legal firm's long-term success. While legal professionals are primarily focused on providing exceptional legal services and growing their client base, it is equally essential to have a well-crafted succession plan in place.

39% Trust tax rate

On 18 May 2023, the government introduced the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill. The Bill includes draft legislation that will see the trust tax rate increase from 33% to 39% from 1 April 2024, thereby aligning it with the top personal marginal tax rate.

Leaky home repairs concluded as not deductible

The leaky homes crisis represents one of the most severe problems faced by New Zealand’s property sector and continues to cause stress and anxiety for those affected. Adding to the uncertainty for rental property owners has been the question of whether repair costs are immediately deductible as ’repairs and maintenance’ (R&M).

Tax policy from two sides of the political aisle

Given that either Labour or National are likely to enter into coalition agreements of some form with the Green Party and Act, respectively, and the tax policies of the two main parties are more ‘vanilla’, it is worth reviewing the tax policies of the two minor parties as this is where unexpected change may come from.

Tax ourselves out of recession?

The buoyant covid subsidy funded days are behind us, New Zealand has entered a ‘technical’ recession. This was reinforced by the recent announcement that New Zealand’s corporate tax paid was almost 11% down in the 11 months to May relative to Government expectations.

The Power of Continuous Development: Staying Ahead in the World of Professional Services

Continuous development is essential in the finance and accounting world to stay credible and excel in the profession. At Moore Markhams, we prioritise ongoing learning to navigate regulatory changes, enhance technical competence, nurture industry expertise, foster innovation, boost credibility and trust, and attract top talent. By investing in our staff's growth and staying ahead of the curve, we solidify our position as a trusted partner in our clients' financial journey.

Trustee tax rate increasing to 39%

The Budget 2023 announced a key change increasing the trustee tax rate from 33% to 39% from the 2024/2025 (generally 1 April 2024). This change is aimed at improving the integrity of the tax system by aligning the trustee tax rate in line with the top personal bracket of 39% which was introduced from 1 April 2021.
 

From Intern to Manager

Tom Offen, a Manager at Moore Markhams Otago, shares his story, starting as an intern and progressing through the ranks. Read on as he sheds a light on his journey, the diverse range of clients he works with, and his passion for the accounting profession.

Budget 2023 - Our view

In the shadow of Cyclone Gabrielle, this year's budget focuses on cost of living and cyclone and flooding recovery, with the sights being shifted and narrowed down on skills, science and infrastructure to help grow the economy and make it more productive and secure.

FBT on motor vehicles refresher

Calculating Fringe Benefit Tax (FBT) on motor vehicles can be complex, due to the various permutations that can exist depending on the use of the vehicle, its type and the approach adopted by the employer. As a result, it is very common for businesses to get the calculation wrong.

Proposed amendment to directors’ duty

One of the fundamental director’s duties within the NZ Companies Act 1993 (‘the Act’) is to act in good faith and in what the director believes to be the best interest of the company. This has traditionally been interpreted to mean decisions should be aimed at maximising shareholder returns.

Environmental correctness

The call for action regarding climate change and mitigating man’s negative impact on the planet is not new. However, there has been a shift in the last few years. It has moved from being a focus of ‘greenies’ and the ‘young’ to being accepted by the mainstream population as something that can no longer be ignored.

Deductibility of holding costs for land

On 31 March 2023, Inland Revenue released a draft interpretation statement (PUB00417) addressing the deductibility of land holding costs - namely, interest, rates and insurance - and the relevance of whether the land is taxed on disposal. How will this affect you?

Growth is aspiration of new Associate

Stuart Hansen has been appointed as our Auckland firm’s newest Associate. After leaving a career as a paramedic, Stuart decided he wanted his new role to lead on to management and ultimately partnership. He is definitely on his way.

New Associate combines two roles

Nikki Lester has been appointed as our Christchurch firm’s newest Associate. Nikki joined Moore Walker Davey Searells in 2007 and has worked her way through the ranks to her latest appointment, which she combines with her current team management role. Learn more about Nikki’s promotion here.

Rollover relief for close relationship transfers

Parents wishing to assist their children with buying residential property should carefully consider the ownership structure and alternate options before settlement. Inland Revenue has issued a draft interpretation regarding bright-line application in family and close relationship transactions.

Let us introduce you to the metaverse

The metaverse is a topic that has gained a lot of traction recently, particularly with Facebook’s rebranding to ‘Meta’ and its announcement that it will now be especially focused on creating its ‘metaverse’. What is this and what impact will it have?

Rollover relief – does it go far enough?

Residential property acquired after 27 March 2021 is subject to a 10-year bright-line period, or 5 years if the property qualifies as a ‘new build’. To alleviate the risk of property transfer being caught with unfair taxes, some rollover relief is available.

New Associate, Sam Gowing and his clients welcomed

A pragmatic attitude and a broad professional network are two of the strengths Moore Markhams Otago’s newest Associate, Sam Gowing brings to benefit his clients and the firm. Sam has joined our Dunedin office with skills to help meet the growing need from existing and new clients.

A charitable world

There are over 28,000 registered charities in New Zealand – organisations that work to relieve poverty, advance education, advance religion or be beneficial to the community. But some examples make you wonder.

Budget 2022 - Our view

It could be said that the Wellbeing Budget 2022: A Secure Future announced on May 20, was a B budget – balanced, backwards, big spending, being some of the words used to describe it.

Insulmax Insulation | Insulation buy a ‘no-brainer’

When Conan Mitchell bought Insulmax Insulation Otago last year, no hard sell was necessary. It was a business he knew inside out; Conan was the first Insulmax employee in New Zealand when it launched seven years ago and also helped establish the other eight – independently owned – Insulmax businesses around the country.

StudioCDesign | A design for success

It’s an unlikely genesis for a successful design company, but when Celeste and Glen Skachill set up StudioCDesign, they went bush. Bruce Stormer, Moore Markhams director guided the couple and continues to mentor them as their business grows.

Wests | An iconic investment

After time spent working in Asia, Angela and Craig McFarlane felt a pull to return to their Dunedin roots.  Moore Markhams’ Callum Hayde helped them become the proud owners of drink, cordial and syrup producer, Wests – one of NZ’s oldest companies.

Common error – claiming GST on FBT

For those of you who prepare and file FBT returns on behalf of a GST-registered employer, you will be familiar with the GST on FBT adjustment that forms part of the FBT return. But are you clear on the rules?

Tax due diligence when buying or selling

For many business owners, a break over summer is an opportunity to evaluate their future strategy and consider whether it is time to exit, or conversely, grow by purchasing someone else’s business. Whether buying or selling, it is a demanding exercise.

Purchase price allocation now in effect

After over a year of consultation, the purchase price allocation legislation is now in effect. The purpose of the legislation is to ensure vendors and purchasers allocate consistent prices to business assets for tax purposes when selling and buying assets.

Empowering girls to change their world

Moore Markhams is delighted to support GirlGuiding New Zealand to train volunteers providing leadership to girls around the country so they can discover their passions, contribute to their communities, and form friendships in a safe and positive space.

Challenges and opportunities in a turbulent job market

Almost two years into a global health crisis that many could not have imagined in their lifetime, the concept of lockdowns, working from home, a fading connection to the workplace, and the overwhelming feeling of burn-out is driving a surge in resignations in many countries. Is this likely in NZ?

Reimbursement for use of telcos

‘Telecommunications usage plans’ is Inland Revenue speak for your telephone and internet connections. IR has created rules for reimbursing employees. This includes shareholder employees. We share more.

Redefining success

Are you a business owner? It’s important to redefine your plan and goals to ensure the business delivers your revised definition of personal, business, and team success. Get in touch to redefine success and set goals to achieve this.

Are you ready for Delta in 2022?

The Delta variety of Covid could easily have been called Covid-20 or Covid-21. Now would seem a good time to be thinking about how this disease is going to affect your business into the future and what you’re going to do about it, if anything.

How to stop leakage leading to liquidation through cash flow planning

A cash flow plan allows you as a business owner to understand how your cash is used. There are misconceptions that having cash in the business means there will be more tax to pay, or that spending spare cash reduces your tax. Unfortunately, this mindset can lead to reduced profitability, and even worse, missed opportunities to expand when the time is right.

Latest on Property Tax Rules

On Tuesday 28 September, the Government released the draft legislation outlining the details of the policy limiting the deductibility of interest costs for residential property investments.

How family-held businesses can thrive generation after generation

A well-designed family-held business succession plan can articulate the vision and values of the founders and help ensure a smooth transition to the next generation. From our experience, many leave succession planning too late. We share some of the key questions that a family should be asking if it wants its business to thrive from one generation to the next.

Paid parental leave for who?

A recently released UNICEF report suggests that New Zealand’s child-care policies remain inferior among OECD countries, despite an increase to paid-parental leave introduced from July this year.

Stability and succession

The challenge of a global pandemic has emphasised the importance of a stable workforce. This is giving rise to an increase in the number of employee share scheme arrangements being put in place.

The ‘ute’ – Kiwi icon or tax dodge

It now appears Inland Revenue may be directed to crack down on the application of FBT to utes and enforce the view that they may not qualify as a work-related vehicle. While on the other hand, the Government is incentivising the purchase of electric vehicles.

Cryptocurrencies – Are they on your radar?

Inland Revenue has released various forms of guidance on the topic of ‘crypto-assets’, which encompasses cryptocurrencies. This guidance is varied and somewhat contradictory. In general, crypto-assets are treated as a form of property for tax purposes.

‘New builds’ discussion document

Inland Revenue’s “Design of the interest limitation rule and additional bright-line rules” document provides clarification on the proposed rules and seeks feedback on certain elements regarding the tax deductibility of interest on residential investment properties and the extension of the bright-line period to 10 years. 

Self-employed and your meals

If you’re self-employed as a sole-trader, you have a greater degree of flexibility and control of your business affairs but you may be disadvantaged in how income and expenditure is calculated compared to a company. Tax deductible meal allowance for one.

Olympic pandemic

The 2020 Olympics held in 2021 was like no other. Here’s some facts to consider about the impact the Covid pandemic had on this global event.

Surprise tax bill? Six possible reasons

Did you, or someone you know, get a tax bill they weren’t expecting? Inland Revenue has released a list of six possible reasons. We can help you figure out which one might apply, or why your bill isn’t what you expected.

Using the Value Ladder to increase sales

It’s essential to build a relationship with customers and provide value before you extract value. From Russell Brunson’s Dotcom Secrets, the Value Ladder shows that the stronger the relationship between you and your customer, the more they’ll spend.

Handling staff shortages

NZ economist Tony Alexander surveyed 22,000 of his Tony’s View subscribers recently asking what issues they were facing around staffing. He collated 170 responses, some of which he described as excellent, and shared those. Check out some of the key findings here.

The drive to survive

Thomas Ziegler, leader of Moore Global’s automotive group, considers the impact the shift from combustion engines to battery powered vehicles will have on the global supply chain.

Stick or twist

Suppliers in the automotive industry have a dilemma: continue to develop systems for traditional cars or gamble on electric vehicles which make up only a fraction of global sales.

Residential property investors feeling the hurt of new reforms

While most of us can accept the Government’s intentions of tipping the balance away from speculators and back towards first home buyers, the new property tax changes are going to hurt ordinary New Zealanders, mum and dad investors, and in reality, tenants themselves as the cost of providing rental stock rises to investors.  We share more here.

BUDGET 2021 – SECURING OUR RECOVERY

This time last year, the Budget dealt mainly with the Government’s economic response to the COVID-19 pandemic with support for business very much to the fore. In 2021, that focus has shifted to improving the wellbeing of New Zealanders and, in particular, those on the lowest incomes.

Introducing Xero ‘gun’ Gemma

Gemma Sheed has returned to our team after time out to have four children. At the same time she was keeping her hand in, particularly working with Xero. She’s now our Xero consultant – a gun for hire for clients, helping with all things relating to Xero.

Heads up for large charities & NFPs

Larger charities and not-for-profits will be required to formally report service performance information as part of their year-end financial statements for financial years ended 31 December 2022 onwards. Now’s the time to start thinking about how best to achieve this.

Traps when buying a used car

While the process of buying a used car is usually completed without legal advice, it’s useful to refresh the checklist of the key points you should follow. This is particularly important if there is no intermediary overseeing the purchase.

Fair market salary reminder

A business needs to pay employees a fair market salary for their personal service. Given the 39 percent personal marginal income tax rate on income over $180,000 now in place, Inland Revenue’s scrutiny of such salaries is expected to increase.

Need help with your tax payments?

Tax pooling is a way to pay provisional tax by either chipping away at what you owe in instalments or deferring the whole amount to a payment date that suits you, without incurring Inland Revenue late payment penalties or interest.

Penalising R&M

Classifying expenditure as either deductible repairs and maintenance (R&M) or non-deductible capital expenditure is not clear cut. It is a question of fact and no two situations are the same. And while its advantageous from a tax perspective, when is it pushing ‘the line’ too far.

Employment recovery

Over a year on from NZ’s level four lockdown, there have been some both highs and lows for businesses and communities. Employment levels slumped to an eight year low in September 2020, with over 150,000 unemployed people. So nearly six months on, how does the job market stack up now?

Otago welcomes new babes

Congratulations go to Tom and Anna Offen and Heath and Terri Copland on the birth of their babies in recent months. James Thomas Offen was born on 17 March and Astrid Sailor Copland a month later, on 16 April.

The Big Pivot

Manufacturers and distributors who made a Big Pivot to embrace technology and reshape supply chains after Covid hit have seen revenue, profits and productivity rise.

Why having a shareholders’ or partnership agreement is vital

Going into business with your brother, best mate, your parent or with business colleagues is exciting but also has the potential to end badly. An agreement in place at the outset helps identify all the worst-case scenarios so that should a dispute arise or the unexpected happen, you’ve already agreed on the best way to handle things. We share more here.

The importance of ‘reconciliation’

Reconciliation is a fundamental accounting process that ensures your financial records are accurate and complete. But it is surprising how many businesses do not undertake them. We share why this process is important and how it can help your business thrive.

Directors’ duties key in Covid

Company directors have a legal duty to not trade recklessly or take on obligations that their business cannot perform. Balancing the continued survival of a company versus their obligation against reckless trading has been a key feature of the Covid-19 economic environment.

New trust annual return requirements

Trusts will soon be required to provide an ‘annual return’ to Inland Revenue disclosing various trust information. Applying for the 2022 income year onward, IR can also request the same annual return information for any period between 2015 and 2021 income years.

An extra bolt on the door

Since COVID-19 started, there has been a dramatic increase in the number of cyber-attacks around the world. We share details of Xero’s mandatory multi-facet authentication about to be introduced – putting an extra bolt on the door to help keep your data secure.

New year’s aspirations

A shake up in the job market this year is likely – research indicates that nearly 385,000 adults will look to change their job in the coming year. Although not all will pursue their own business ideas, there is growing support for entrepreneurs.

The 39 percent rate change

The top personal marginal tax rate increases to 39 percent on income over $180,000 with effect from 1 April 2021. Businesses should consider what the flow-on effects are and forward plan to ensure they are not caught off guard.

The dangers of discounting

Offering a discount might seem like a great way to respond to a drop in sales, but it's a race to the bottom. Get in touch to discuss strategies to respond without discounting your product or service and maintaining your gross profit.

Leveraging your technology

Using technology to streamline your processes and systems increases efficiency, saving time and money, and reducing stress. We can help you identify how to use technology to make your business more sustainable, scalable, and saleable?

Promoting from within

Over the past eight months, we have made several changes within our Markhams Otago team, proudly promoting from within to provide opportunities to move into different roles.

New $40 Million COVID-19 Fund Opens

If you’re an iwi, hapū or community that has a social initiative to keep NZ safe and resilient, you should check out this new fund worth $40million to support community and social initiatives, marae, community facilities, heritage, environment activities, outdoor safety, health research and individuals with disabilities.

How to work effectively as a trustee

If you are a trustee, you should be well aware that the Trust Act 2019 comes into effect at the end of next January. You should also be aware that there are changes that affect you and your responsibilities. 

Time wasters to avoid

Struggling with disruptions, shifting priorities, and frustrating re-work? Streamline your processes and boost your efficiency. Here’s some thoughts on how.

Election outcome and tax policies

Labour has ruled out a capital gains tax and an increase in fuel taxes but is prepared to introduce a Digital Services Tax to target multinational digital businesses who have taken advantage of tax structuring options.

Demystifying your Balance Sheet

Unclear on the story your Balance Sheet tells? Don’t know how to calculate key ratios to measure the strength of your business? We can help demystify your Balance Sheet. The stronger it is, the stronger your business will be.

Adopting an Atomic Habits mindset

James Clear’s book, Atomic Habits, is a Gamechanger. If you struggle to make habits stick, stop focusing on habit outcomes and consciously adapt your identity to be the person that aligns with your habit.

Setting sales targets

How do you set attainable sales targets in a crisis? We’ll talk you through your business aims, profit goals, and historic sales performance, to set targets that truly deliver on your goals.

Cutting costs or increasing your prices? We can help

With more than 85 percent of SMEs expecting a lower profit in the next nine months, the more prepared you can be for the unexpected, the better. Talk to us about smart ways to get your costs under control or whether you need to increase your prices. We share thoughts here.

Get in control of cashflow

Does your business need to improve its cash position? Poor cashflow is a problem for many businesses, whether you’re a start-up or an established family business. Talk to us about how you can get proactive with cashflow management.

Does your business have a CRM tool?

Having clean, up-to-date information and data about your customers is a vital part of running your business. But recording, tracking, and accessing this customer information can be tricky if you don’t have the right tools to get the job done.

Create a business plan in 10 steps

Your business plan is a roadmap for your business. Outline your vision, set goals, define funding and budget, forecast sales and cashflow, set timelines. Talk to us to create a watertight business plan.

How NOT to manage working from home

How do you adapt the traditional working day to suit a remote workforce? The best place to start is to ask employees for their feedback. Here are some common practices that don't replicate to the home office.

The fundamentals of a business budget

We believe having a budget is essential for business success. Talk to us about creating a useful budget in your accounting software as a practical business management tool. We’d love to help you start planning for a great 2021 financial year!

Efficiency through automation

Technology can be transformative: improving leverage, consistency, efficiency, risk management, induction and training, scalability and saleability. What software have you adopted Post Covid as part of your Business Recovery Plan?

What are your critical numbers?

The Covid-19 crisis has created a ‘new normal’ for businesses. Traditional ways of working are being challenged and we now need to innovate, adapt, re-engineer, and reinvent the way we work.

Facing challenges? Change your mindset

In today's world, we are constantly having to tackle new things and learn new skills. It can be overwhelming,... if you let it. Next time you feel like saying ‘I can’t do it’, replace it with ‘I can’t do it, yet’.

Support for farmers

Farmers under financial strain now have access to extra support and guidance. The Farm Debt Mediation Scheme came into play on 1 July and provides mediation services to help farmers and their creditors work through debt issues.

Support for commercial rent disputes

Many commercial lease arrangements in New Zealand have been affected by the response to COVID-19. Tenants may be unable to pay their rent as their business is not fully operating or generating sufficient income. Landlords may also be unable to meet their mortgage payments.

How do you invoice during a crisis?

It’s not easy to request payment right now but it is important to keep cash flowing into your business. As with all business dealings at them moment, a little empathy and a lot of open communication can go a long way.

Cashflow and cost control crucial now

Keeping everything running is the priority for now, whether you’re in recovery or growth mode. Regular cashflow forecasts will help you make informed decisions. And controlling your costs will potentially free up cash. We share more here.

How carry back of tax losses can help you through COVID-19

As part of the Government’s Covid-19 response, on 30 April 2020 legislation was passed under urgency that allows tax losses to be offset against income derived in a previous year, thereby enabling the taxpayer to obtain a refund comprising prior year income tax paid. This temporary tax loss carry-back scheme is available to most taxpayers, e.g. trusts, companies and individuals.

Pandemic rules that get you thinking

As we’ve moved through our COVID-19 alert levels, it’s taken some time for the rules to be refined and communicated. Not to make light of the importance of the rules, other countries have adopted some ‘interesting’ lockdown directions.

Budget 2020 Rebuilding Together – our take

Touted as a once in a generation Budget, yesterday the Government announced a $50 billion COVID-19 Response and Recovery Fund, $20 billion of which remains uncommitted and will be allocated in the months to come. This fund builds on top of the initial $12.1 billion package, and the $12 billion New Zealand Upgrade Programme announced in January.

Insolvency relief

The Government is introducing urgent law changes to the Companies Act to give directors temporary relief from potential personal liability when the business faces significant liquidity problems.  The changes will not cover serious breaches of duty.

The value of a brand style guide

Your brand is an integral part of what makes your business unique. So, keeping your brand style consistent across all communications, marketing and online channels is important – and this is where having a brand style guide can become invaluable.

Can you steal GST?

Whether a price includes GST or not is important to know for the price of a product. In the case between New Zealand Police and Genesis Pure, ‘GST’ became the difference between a maximum penalty of seven years in jail, or one.

COVID-19 economic response package and you

The rapid escalation of New Zealand’s official response to COVID-19 is having impact on our business community - in some cases, it’s already significant. We believe that business owners and managers, ourselves included, will find dealing with the coming months challenging.  We want to assure you that we are here to support you.

Joining forces to strengthen our service

From next week, our cloud-based accounting expertise will strengthen when we are joined by our colleagues from HWI Limited under the Moore Markhams banner. Initially this will be from our home bases but we look forward to bringing them into our Newmarket offices once the COVID-19 situation is over.

Employee phones and PAYE / FBT

The devil is in the detail and there are conditions around employees using mobile phones and how PAYE and FBT rules apply. Recently Inland Revenue provided an easy rule of thumb for employers to adopt.

GST on loan repayments

GST is deducted on goods and services that are acquired for use in making taxable supplies. A recent High Court decision is a timely reminder that understanding the legal form of a transaction is important for applying the correct GST treatment.

Changes to donation tax credits

The Income Tax Act 2007 requires a donation to be a “…gift of money of $5 or more…”, but what does this phrase mean? Confusion arises because monetary gifts can take various forms. A dispute on the issue has been making its way through the Courts.

Work. Sleep. Eat. Repeat?

Working harder is not always smarter. Burnout is common among business owners and staff who are pushed to the limits. Ultimately, it’s not good for business or your personal life to be burning the candle at both ends. But how on earth are you expected to fit it all in?! Find a better balance with these helpful hacks.

Sharon Parker retires after 30 years

After 30 years attending to the financial needs of businesses from Wairarapa and further afield, Sharon is looking forward to a change in direction. This will be an exciting time for her as whilst some of her plans are mapped out there will also be something of a leap into the unknown.