|Posted on 11 August, 2019 at 17:40||comments (3)|
Provisional Tax and UOMI
Chris Lynch, Director
Lynch & Associates Limited
Auckland, New Zealand
When paying your provisional tax payment please make sure you pay the exact amount as advised in our reminder letter for your 28 August provisional tax instalment (assuming standard balance date).
Please make sure you state the exact amount payable down to the last cent, or at least round up to the nearest whole dollar.
Inland Revenue’s system calculates provisional tax payments to the cent (i.e. $12,500.47 rather than $12,547.00).
If the exact amount is not paid by the due date, the concessional UOMI provisions will not apply and you may be liable for Use of Money Interest from the first instalment date.
This, of course, is very unfair but who said life was fair? This is how the legislation works and to change it would require an amendment to the legislation.
Inland Revenue has been notified of this issue and a recommendation put forward that their system should build in a buffer of a few dollars.
Talk to us, we can help. Ph. Chris on 09 3666008or email: [email protected]
|Posted on 13 May, 2019 at 23:25||comments (1)|
Working from Home? Claim your home office expenses.
If you have a home office for your business, you should be able to claim some of the running costs. It’s important to be aware of what you can and can’t claim, and the record-keeping involved in making a claim.
How does it work?
In order to claim, the space you use must be used primarily for your business. This doesn’t mean setting up at the kitchen table from time to time, it means having a dedicated space that you work from. If you are selling online and storing stock, you may also be using other spaces in your house for storage or stock maintenance. If you are making or creating products, you may be using other areas like your kitchen or workshop.
To understand what percentage of your home is being used for your business, you should work
You can then claim a corresponding portion of your household expenses against your business income.
This could include:
- house and contents insurance
- mortgage interest if you own the home
- rent if you are renting the home.
- Keeping track of expenses
Make sure you keep a record of all your expenses and retain your records for seven years. It’s important to keep your personal and business expenses separate. Consider using online accounting software so the paperwork is kept in good order.
We can help you review your home office expenses to make sure these are included when you claim.
https://www.lynchandassociates.co.nz/contact" target="_blank">Talk to us, we can help.