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SEVERAL WAYS TAXPAYERS CAN GET CAUGHT OUT
AIRBNB INCOME If you rent rooms or homes through Airbnb, you may not realise that the IRD considers you to be a landlord. Your rental income must be included in a tax return. If you’re unsure of your tax obligations, please consider seeking professional advice. OVERSEAS RENTAL PROPERTY You must declare any rental income you get from properties overseas. You can claim deductions for rental-related expenses, and you may also be able to claim a credit for tax paid in the other country on that income. Complexities can arise when loans and...
read moreGIVE YOUR BUSINESS A MEDICAL
The end of December will mark the third quarter point for this financial year, making it a good time for a business health check. Comparing your past nine months with the same period in previous years can show if your business has been growing, and most accounting programmes will easily produce year-to-date reports. What to look out for and think about: • How do you think the next three months will go? • Have you had better growth this year than you expected – what about next year? • If you had growth this year – have you saved enough for tax...
read moreSLOW PAYERS COST YOU REAL MONEY
You know you have to get your debtors to pay, but do you understand the true impact of slow payers? Without a realistic picture of the direct and indirect costs of slow payment, your debt management practices may hurt your business. You may: • Reduce your cashflow. • Create a snowball effect – if debtors think you’re relaxed about payment, you encourage them to be slow. • Build up an increasing number of debtors, leading you to let smaller debts slide. • Chew up valuable time and resources in managing slow payers and following them up. What...
read moreTHE ACCOUNTING INCOME METHOD
The accounting income method is a simple but smart change. It allows you to use your accounting software to calculate and pay your provisional tax, taking the guesswork out of the process. If that sounds a lot like how you calculate PAYE, that’s because it is. Although these changes don’t take effect until April 2018, now is a good time to start planning for them. We’ll look deeper into this in future issues, so watch this space. Other business-friendly measures include reducing or removing use of money interest (UOMI) for the vast majority...
read moreFilling Employment Gaps
When employing, think carefully about the kind of help you need and broadly what kind of employment contract is best suited to the situation. It’s important to make sure you comply with current employment law and have it right from the start. Casuals Casual employees might be right for your business, for instance if you are covering unexpected absences. But remember that, no matter what you call the employment, if you treat casual staff as if they are permanent — for instance, give them regular hours or work over a sustained period — their...
read moreBuying Perspective: Risk and Reward – Purchasing Land or a Home
Buying off the plan? The bright-line test and you We’ve talked before about how changes to tax law around buying and selling property might affect you. Now that the changes are in operation and the bright-line test is being applied to determine tax liability, an issue highlighted only recently might leave you exposed. As we’ve discussed before, people who buy or sell a property within two years of acquiring it must pay tax on the gain. The main home is exempt and there are some other exceptions such as inheritance and relationship break-ups....
read moreClient Perspective – 37 The Landing Motel
Operated by Jo Dowthwaite WHAKATANE ranked sixth overall as the best-rated destinations for accommodation in the Bay of Plenty for the second year in a row, according to online hotel search site, Trivago. Six Whakatane district motels – 37 The Landing Motel (7th), One88 On Commerce (14th), Pacific Coast Motor Lodge (20th), Ohope Beach Resort (23rd), Tourist Court Motel (28th) and Asure Barringtons Motor Lodge (30th) – were in the top 30 list of accommodations favoured by travellers to the Bay. Opotiki’s Ohiwa Beach Holiday Park was ranked...
read moreClient Perspective – Cecilia’s Raw Food Workshops
My aim is to bring a healthier food option to the Bay through my Raw Food Workshops. You might say ‘not another fad diet’ but raw food cuisine answers everything from fat-free, gluten free, sugar-free, vegetarian, vegan and paleo. It doesn’t use meat, refined sugar, dairy, grains, flour or eggs, so it caters for a variety of allergies also. It uses vegetables, fruit, coconut, nuts and is truly amazing how you can prepare delicious meals, cakes, desserts and more without having to cook! The workshops are fun and interactive and give you the...
read moreTurn Customer Complaints into Opportunities
Dealing with customer complaints can be both gruelling and rewarding. But being able to turn the situation around so your customer is happy with the outcome can strengthen their loyalty to your brand and inspire some gold standard word of mouth marketing. Communication and attitude are as vital as expert product knowledge. Listen and empathise Let the customer tell their story. Ask questions to clarify. Let them know you want to understand. Let your customer know you can see it (and feel it) from their point of view. Make sure you understand...
read moreSustainability in the Workplace
The word ‘sustainable’ seems to be thrown around on a regular basis these days, not just in relation to the food we eat, but also to business and the wider economy. Sustainability in a work environment relates to an awareness of resources: how they are used and how we can conserve these resources to the benefit both of our environment and our pocket. The impact this thinking can have in our workplace is significant. It can alter staff attitudes and behaviours positively, with a common goal, a shift in motivation and a more positive approach....
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