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How to enjoy all the bells and whistles without the tax headache
accelerateonline • Oct 25, 2018
Parties and gifts are all part of the festive fun but they can cost a small fortune. Here’s a list of the rules around entertainment expenses so you know what’s deductible and non-deductible before you fork out for your staff and customers.
- To claim 100% of your customer gifts, keep it non-food or drink related. Book vouchers, tickets to a sports match or a personalised calendar can be claimed in full.
- Got a staff party planned? Half your food, drink, entertainment and venue hire can be claimed in your GST and income tax returns.
- You don’t need to pay Fringe Benefit Tax on entertainment expenses (that come under the 50% deductibility rules) unless it’s being enjoyed by staff outside of their work duties.
- Heading to Aussie for a fun-filled weekend with your staff? It’s 100% deductible (and they’ll love you for it!).
- If you’re giving customers and staff food and wine for their efforts you can claim 50% as a business expense.
- Donating to charity this Christmas? You can deduct 100% of the cost of entertainment you provide to members of the public for charitable purposes.
- If you’re taking your family (who don’t work for you) out for brunch to thank them for putting up with your long hours… it’s not deductible because it’s not related to generating income for your business.
- Taking the team out for lunch? Ordering in a Christmas feast? You can claim 50% as a business expense whether you’re out of the office or on-site.
- Top tip: If you run out of time to organise Christmas gifts for customers, why not surprise them with a ‘Welcome back to work’ prezzie in the New Year?
Remember to keep your invoices and receipts for business entertainment expenses and if you have any questions about what’s deductible and non-deductible, give us a call.
Accelerate - December 2023
Accelerate August 2023
Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values, determined by a process involving a review of the livestock market as at 30 April.
The values for Dairy this year have seen a fall in values across all female classes, but increases across all male classes. The fall in R1 heifer values can be attributed to the prohibition of live export by sea commencing from 30 April 2023. For the first time the National Average Market Value for R1 Heifers is less than the National Standard Cost of breeding and rearing an R1 Heifer.
In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.
Sheep values have all fallen from the high of 2022, slipping back an average of 10.2%. Whilst values have fallen, they are still either the second or third highest that they have ever been depending on which class of sheep you are looking at.
Goat values have increased on average 7.8% with almost all classes of fibre and meat producing goats at record highs. The value of milking goats continues to be well down from historic highs, except for breeding bucks which are at their highest value.
Like the rest of the world, New Zealand has reeled from the aftermath of Covid, rising inflation and interest rates, and the cost-of-living crisis. This year we also have a massive storm damage repair bill.
Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.
Budget 2023 builds on the $889m already provided in response to this year’s storms. A further $6b is allocated for a National Resilience Plan , for rebuilding after weather events. $71b is committed to new and existing infrastructure projects: not only storm damaged communications, power and roading, but schools, hospitals, public housing, rail and road.
