"Providing accounting services of the highest quality from our Warkworth premises since 1988."
The two most important things to remember are:
a) Retain any documentation you have surrounding payments and subsidies you’ve received from Inland Revenue or MSD.
b) Got employees working from home? The 2021 COVID-19 Protection Framework means a new approach to covering their costs. Remember, if an employer pays for an employee’s expenditure or loss when they fork out for extra power, phone charges, printer ink, home office supplies or equipment, then the payment is tax-free, not subject to PAYE, and deductible for the employer. If you estimate the payment, you need to keep track of (and evidence of) how you calculated it.
From the 2021-22 income year there are new disclosure rules for domestic trusts. Trustees will need to prepare financial statements and provide extra information with their income tax returns.
Now that interest on mortgages taken out for residential property acquired after 27 March 2021 is non-deductible, if you have a property with existing mortgage interest that fits the frame for the interest phase-out applying from 1 October, we can calculate the interest phase-out for this year for you. And let us know if you bought or sold residential investment property during the year so we can give you an accurate picture of your tax exposure now and going forward. The brightline test for property sales on or after 27 March 2021 is now 10 years (up from 5 years for properties acquired between 29 March 2018 and 27 March 2021).
We absolutely understand the financial pressure you’ve been under, and while repayments are not compulsory in the first 24-months, our tip for saving money long-term is to pay off the loan before interest starts being charged. If you’re struggling, and your business has experienced a 30% decline in actual or predicted revenue over the period of a month (compared with the same month last year due to Covid) you may still be considering a loan. Applications are open until 31 December 2023 through the Inland Revenue website.
Inland Revenue is reviewing WSS payments that weren’t reported in the ‘Government Subsidies’ field of the 2021 IR3/IR3NR income tax returns, so if this was you, talk to us. Please keep any receipts or documents so when we make the amendment, we can provide supporting information to Inland Revenue. And keep all relevant information together for accurate reporting for the 2022 year.