Tidy stationery: Top ten tax tips to get you sorted before end of year

With not long to go until financial year-end, we recommend giving some thought to the following suggestions so you can start the new tax year prepared and organised:

Top ten tax tips

  1. Fill your drawers:

    Can you stock up on stationery, postage and courier bags before 31 March? Claim now and save.

  2. Staff expenses:

    If you owe employees holiday pay, bonuses, long service leave or redundancy payments, you can claim for these now - as long as they are paid within 63 days of the balance date.

  3. Can you fix it?

    If you've got any significant maintenance or repairs on the cards, do it before year-end and save on tax.

  4. Turn fun into savings:

    Do you know which entertainment expenses you can claim 100% of? It's worth finding out - ask us if you need clarification.

  5. Look at your fixed assets:

    Do you have any you're no longer using or don't plan to use in the future? If so, you may be able to write off the book value.

  6. While you're at it, check your stock:

    Look at your stock as well, especially obsolete stock. There may be an opportunity to write off some of this as well - check with us on what could be done in this area.

  7. Income boost:

    Earned a lot more this year? Consider making a voluntary provisional tax payment.

  8. Logging car use?

    Remember to make a note of your odometer reading at year-end, and if you've kept a logbook of business & personal use, mileage and costs, good work!

  9. Home office:

    It's also a good time to review what home office expenses may be available for deduction, especially your home office. We can help with calculating this.

  10. Saving time saves money!

    Accountants are required to ask for information to comply with AML-CFT obligations, plus Inland Revenue may ask you, via your accountant, for extra information in relation to your end-of-year tax. Having your identification and tax documents collated and correct saves your accountant time, which saves you money.

Writing off bad debt?

If you're expecting a tax break from writing off bad debt, you may also expect to hear from IRD asking you to prove the debt is, in fact, bad.

A new ruling means Inland Revenue could request evidence of any steps you have taken to recover the debt (before writing it off), and proof there is no reasonable likelihood the debt will be paid.