Quarterly Newsletter

Tax Talk

Transforming GST

Inland Revenue have rolled out changes to how New Zealanders file and manage their GST as part of ongoing business transformation. More than half of New Zealand's businesses now file their GST through Inland Revenue's secure online service myIR, or direct from their accounting software. If this includes your business, you may have noticed there is a new myGST tab on your myIR account. This will provide access to all your GST information.

Learn more about this...


Faster GST refunds

It is now compulsory for Inland Revenue to provide GST refunds by direct credit to a taxpayer's bank account, resulting in faster GST refunds. Obviously it is important Inland Revenue has your correct banking details - if you would like us to confirm this with them, please let us know.

From here on, Inland Revenue will only make GST refunds by cheque if they do not hold a customer's bank details.


PAYE

PAYE is the next big ticket item in the business transformation proposals – if they go ahead, employers will be able to file PAYE directly from their payroll system. Though not proposed to start until 1 April 2019, there are some lead-up steps that will start from 1 April 2018:

  • payroll subsidy (subsidising employers to outsource their PAYE obligations to listed payroll intermediaries) would cease
  • some minor changes to the PAYE rules for holiday pay paid in advance and aligning when rate-changes come into effect


Upcoming changes

There has been a raft of legislative change introduced recently which will affect businesses once it comes into effect.

Without going too deeply into detail we will briefly outline these changes …

 

Provisional tax

The provisional tax changes mentioned last year will apply from 1 April 2018. These include the proposed accounting income method (AIM) of paying provisional tax.


Learn more about this...


Use of money interest

Another part of the package of changes applying from the 2018 income year (ie from 1 April 2017 for standard balance date taxpayers) is to remove use of money interest from the first two provisional tax instalments (for those who pay in three instalments) and who continue to use the standard method to calculate and pay provisional tax (often referred to as the 'uplift method').

Businesses (including companies) and individuals with residual income tax of less than $60,000 and paying provisional tax in three instalments using the standard method will not be subject to use of money interest.



Miles to go -

changes proposed for motor vehicles

Currently close companies providing a motor vehicle for the private use of shareholder-employees must pay FBT on the value of the benefit provided. This value is based on the availability of the vehicle rather than its actual private use and this means higher FBT compliance costs for close companies.

Learn more about this...


Home office

There is also a new alternative option for calculating home office applying from 1 April 2017 (for standard balance date taxpayers).

Under the new option, home office deductions can be determined by using a 2-step calculation.

Learn more about this...


Contact Us

If you wish to discuss any of the matters raised in this issue of Dollars and Sense, please contact our office - a member of our friendly team will be happy to assist.

 

Kind Regards

The team
Ean Brown Partners Limited


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Disclaimer

The information contained in this newsletter is of a general nature and should be used as a guide only.
A senior representative of Ean Brown Partners Ltd should be consulted for specific advice before any action is taken.


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