• New 39% Personal Tax Rate For NZ’s Highest Income Earners

    | Categories: New Zealand , Tax

    Blog by Fuel Accountants

    In December 2020, the NZ Government passed legislation to implement a new personal tax rate of 39% for those with personal incomes above $180,000. This new rate comes into effect from 1 April 2021 (the 2021-2022 income year). What You Should Know As with any changes...

    CLICK HERE TO READ THE FULL ARTICLE »


  • NZ Wage Subsidy

    | Categories: New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    The New Zealand government has announced a wage subsidy for employers who continue to employ staff during to the COVID-19 lockdown and while reopening the economy.
    Here’s what’s new since the video was recorded:

    (8 June) In the budget the government announced an extension to the Wage Subsidy. From June 10, business that have suffered a 40% reduction in turnover any 30 day period between 10 May and the date of application as compared to 2019, will be entitled to the wage subsidy for a further eight-week period. High growth and new firms will also be eligible.  Here’s what you need to know:

    CLICK HERE TO READ THE FULL ARTICLE »


  • New Loss Carry Back Rules

    | Categories: New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    On April 15 the government announced new loss carry-back rules designed to ease the tax burdens on businesses who end up with losses as a result of the COVID-19 crisis. Normally losses must be carried forward (with some limitations) to future years to be offset against future taxable earnings. This is of little help to a business right now, and there is no guarantee of future earnings, especially if a business ends up closing down. In some cases tax payments from last year are still due, despite the business losing money in the next. Loss carry-backs are common in many other jurisdictions and allow you to effectively apply the loss to a prior year’s taxable income and get a refund of taxes paid for that year.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Increased Write off for Asset Purchases

    | Categories: New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    The New Zealand government has announced some tweaks to the tax system to assist businesses. It’s not a benefit or cash bonus, but could reduce your tax bill for the 2021 tax year.
    Here’s the outline from the video:

    • For the 2021 financial year you can write off asset purchases of up to $5000 (usually $500)
    • From April 2021 will reduce to $1000 permanently
    • Doesn’t cover March 2020
    • Not really a cash bonus

    CLICK HERE TO READ THE FULL ARTICLE »


  • Changes to Provisional Tax and Interest

    | Categories: New Zealand

    The New Zealand government has announced some tweaks to the tax system to assist businesses. It’s not a benefit or cash bonus, but could reduce your tax bill for the 2021 tax year.

    Here’s the outline from the video:

    CLICK HERE TO READ THE FULL ARTICLE »


  • Business Finance Support

    | Categories: New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    Small Business Cashflow Loan Scheme

    On 1 May the government announced a new Small Business Loan scheme because “it has become clear that the support that is available to our small and medium businesses from banks is not meeting their needs nor our expectations as a Government.” The details are:

    • Eligibility
      • the same as for the Wage Subsidy Scheme (30% decline in revenue year-over-year for any ONE month between Jan to June 2020 or compared to Jan/Feb)
      • Employs 50 or fewer full time equivalent employees
      • Businesses will also have to declare that they are a viable business
    • Application
      • Directly through Inland Revenue
      • Opening on 12 May – closing 24 July
    • Benefit

    CLICK HERE TO READ THE FULL ARTICLE »


  • COVID-19 and your Business (New Zealand)

    | Categories: New Zealand

    Things are moving fast. This page has already been superseded. Please consult our COVID-19 summary page for more direction.

    What you need to know about COVID-19 for your businessCOVID-19 is hitting business owners really hard. In this video Fuel Accountant’s founder, Peter McCarroll, discusses what you need to be thinking about and doing right now and what government assistance is available to you and your staff in New Zealand. Based on data available to 19 March 2020.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Don’t be blasé about tax debt

    | Categories: New Zealand , Taxation

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    When it comes to paying bills, we often tend to be blasé and put our financial responsibilities into the too hard basket. Ignoring debt is the easy option at the time but eventually things catch up with you. When it comes to paying tax, it is even more important to stay on top of your obligations to avoid potential tax debt. So what happens if I do get behind? You should try to avoid getting to this point, but it is likely the IRD will contact you if you miss your payments.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Withholding Tax Changes for Contractors

    | Categories: Contractors , New Zealand , Taxation

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    For the purpose, this these changes a contractor is someone who supplies their labour to a third person as an “independent contractor”. Those in the trades are commonly referred to as contractors and may not necessarily be affected by these changes (although labor-only subcontractors are). The changes are:

    CLICK HERE TO READ THE FULL ARTICLE »


  • Seasonal Questions & Answers

    | Categories: Allowances , New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    Overtime Meal Allowances
    Question : In the lead-up to Christmas the elves are required to put in long working days and to work well into the evening beyond their normal work hours.  As a result, Santa is paying the elves a meal allowance in addition to their normal wages and overtime pay.
    Will the meal allowances be taxable income to the elves?
    Answer :  The starting position is that any monetary benefit employees receive in connection with the performance of their employment will form part of their income. However, an amount that an employer pays to an employee for a meal while that employee is working overtime may be exempt income of the employee.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Safe as houses

    | Categories: New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    The suspense about whether and when a capital gains tax would be introduced to New Zealand seems to have been drawn out for well over a decade. OK, the suspense is over now. Are you relieved? The focus in this budget is on damping down property speculation rather taking a slice off the family home. There will be a two-year window for sales of residential property. If a residential property is bought and sold within two years, it will be subject to tax. This does not apply for:

    CLICK HERE TO READ THE FULL ARTICLE »


  • Recent Changes

    | Categories: New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    Vehicle licensing

    On 1 July 2015 the ACC vehicle licensing levy is being reduced. The cost of relicensing most vehicles will drop by around $130 a year. If you need to renew your vehicle’s registration before then, you can save money by renewing your registration to expire in July 2015. Note that the relicensing form and online renewal allow you to specify the number of months, and is not confined to three and six monthly periods only. When your vehicle licence expires after 1 July 2015 the reduction will automatically be applied to your renewal.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Ever feel you’re the meat in a tax sandwich?

    | Categories: Business , New Zealand , Tax

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    Are you worried about paying your terminal tax bill on 7 April?

    We understand how terminal tax can sometimes put pressure on your business’ cash flow. Even more so, if it’s worked out that you also owe Inland Revenue (IRD) for interest and late payment
    penalties on the unsettled liability. And, if you add into
    the mix that looming provisional tax payment due on 7 May (the final installment for the 2015 year)… well, it can add up to a few sleepless nights, right?

    CLICK HERE TO READ THE FULL ARTICLE »


  • What changes on 1 April 2015?

    | Categories: Business , New Zealand , Wage

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    Minimum wage
    The minimum wage will increase to $14.75 per hour. Training and starting-out minimum wages will increase to $11.80 per hour
    Child support
    The amount of child support some parents pay or receive may change. Inland Revenue’s new formula for calculating child support now includes both parents’ incomes and circumstances, and recognises a wider range of care.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Employment Law Changes

    | Categories: Changes , Employment Law , New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    The government has made some major employment relations changes, effective from 6 March 2015. Changes target flexible working arrangements, rest and meal breaks, continuity of employment for vulnerable employees upon restructuring, the good faith provisions, collective bargaining, and how the Employment Relations Authority gives its determinations.
    Flexible working arrangements

    CLICK HERE TO READ THE FULL ARTICLE »


  • Party party party

    | Categories: Business , Christmas , employment , New Zealand , Tax

    Blog by Fuel Accountants

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    p>Are you planning a Christmas function for special clients and/or suppliers and business contacts? Be aware that this will come under the entertainment regime for purposes of tax deductibility. Any expenditure on food and drink
    that your business provides off your business premises will be 50% deductible. This extends to any incidental expenditure on things like hireage of crockery, glassware or utensils, waiting staff, and music or other entertainment provided for the function you’re planning.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Christmas Presents

    | Categories: Christmas , employment , New Zealand , Staff , Tax , Taxation

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    Thinking about giving your staff a well-deserved Christmas Present of Bonus this year? Cash bonuses are always subject to

    PAYE and should be put through your standard payroll process. There is a category called “Extra Emolument” designed to avoid overly penalizing lump sum payments. Other non-cash gifts (gift baskets, flowers, vouchers, etc., are subject to the FBT rules. An FBT-free allowance of $300 per employee per quarter is available.

    CLICK HERE TO READ THE FULL ARTICLE »


  • Evaluating employment changes

    | Categories: Business , employment , New Zealand

    A new report by the Ministry of Business, Innovation and Employment looks at outcomes of key changes to employment law made in 2011 to see if they are working as intended.
    What the changes were meant to do
    The broad aims of the changes were to:

    CLICK HERE TO READ THE FULL ARTICLE »


  • Minimum Wage heads up

    | Categories: Minimum Wage , Business , Employee , New Zealand , workers

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    After the government increased the minimum wage rates earlier this year, it made a further amendment to the Minimum Wage Order, issuing a new fortnightly rate. The fortnightly rate is $1,140 for adult employees and $912 for starting-out workers and trainees. If you’re an employer already fully compliant with minimum wage requirements and your employees’ hours don’t vary from week to week, stop reading here. For you, nothing has changed.

    CLICK HERE TO READ THE FULL ARTICLE »


  • GST and Donation issues for Charities

    | Categories: Charity , GST , New Zealand

    IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

    We have a number of Charity clients who are GST registered. The number one issue we have to deal with for these clients is sorting out what income streams should be subject to GST. Just because you are a Charity doesn’t mean that all your income is exempt from GST.
    This has become relevant recently as the IRD has begun challenging a number of scenarios in this space. In particular, the IRD has published a Revenue Alert looking at private schools and kindergartens that required parents to make a “gift” to the school or related foundation. The school, therefore, didn’t charge GST on the “fees” and the parents claimed a tax credit on the “gift.” The IRD is investigating and reversing lots of these, and tax fraud charges are likely to those who promoted the arrangement! I tell my clients that they should treat all receipts as GSTable UNLESS they can prove that it is not. There is an alarming trend among charities (and this includes Churches, where honest and ethics are supposed to be virtues) to reliable a receipt as a “donation” and therefore grant a tax credit to the “donor” and avoid having to pay GST by the Charity (forgive my rant, but which part of claiming the input tax credit for the organization and then failing to pay the output tax credit is ethical?).

    CLICK HERE TO READ THE FULL ARTICLE »