Tutbury Associates LtdTutbury Associates Ltd

by Kelly Tutbury

Are you aware of your tax obligations with Inland Revenue (IRD)?

Do you understand how the tax system works in New Zealand?

GST – Are you monthly, bi-monthly or 6 monthly? Are you invoice, payments or hybrid? Are you aware of the difference or what best suits your business and cashflow?

How are you filing that GST? – with a software system like Xero you can streamline or even eradicate your paperwork. This saves you a lot of time and money, and with the new roll out with Xero you can now file your GST straight from there to Inland Revenue (IRD) with your IR log on. Here are the tips on Xero  – https://help.xero.com/NZ/GSTFileOnline

Note though that this isn’t the only software option it’s just our preferred option.

Terminal Tax – this is always due on the 7th April and is based on your last year’s profit.

Provisional Tax – If you’re GST registered bi-monthly or not GST registered (note 6 monthly GSTs are different dates) your dates are always: 28 August, 15 January and 7 May. Your tax is based on the last year’s accounts filed with the Inland Revenue (IRD) + 5% or 10%. The new changes to Prov Tax don’t come into effect till 1 April 2018. So you really need to be working closely with your Accountant to avoid those huge and unexpected tax bills.

Did you also know you can buy your tax at a better rate than the 8.27% interest Inland Revenue (IRD) is currently charging? Tax Management (TMNZ) www.tmnz.co.nz offer a service to reduce your interest costs. Ask your Accountant how this works.

At Tutbury’s we are happy to help in any way. If you would like a 1-hour free consultation, please contact us. Whether it’s to discuss tax, software systems or pointing you in the right direction.

 

 

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Tax, GST – IRD Obligations Simplified