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New Kilometre Rate for Claiming Motor Vehicle Expenses

Are you using your car for business purposes? It’s timely to outline the process for claiming tax on your work vehicle expenses.If you’re using a vehicle for business purposes, you can claim tax back on expenses. If you use the vehicle only for business, you can claim the full running costs. If you use the vehicle for any personal travel, you’ll need to separate the running costs of your vehicle between business and private use. There are two ways to calculate the business usage: Actual co...

Changes to Fonterra’s Advance Rate Scheme

Fonterra runs an advance rate scheme to spread some of the risk from fluctuating global dairy prices across the year. Payments to farmers are based on the forecast milk price. In recognition that cash is king and in line with their strategy, Fonterra has made the following changes to the scheme: The monthly payment date will move from the 20th of the month, to the 15th of the month.  Final settlement payments will be settled as soon as possible after year end. The October retro payment will...

2020 Provisional Tax - Payments Due on 7 May 2020

Many of you will have 2020 Provisional Tax payments due on 7 May 2020.  Please note that 2020 is the year that just finished on 31 March 2020 and not the year we are currently in (which may be significantly impacted by Covid-19). If you find that you are unable to make this payment of Provisional Tax due to the Covid-19 Virus, there are a couple of options that are available to you: We can contact Inland Revenue and advise that you are unable to make payment. Inland Revenue will allow you t...

Understanding the Provisional Tax System

Provisional tax is a way of managing your income tax by paying instalments during the year on the tax due for the coming year. COVID-19 and provisional tax This post sets out the normal rules for provisional tax. COVID-19 has created exceptional circumstances and some exceptional tax relief measures have been introduced: The RIT threshold for provisional tax increased from $2,500 to $5,000 from the 2020/21 tax yearDepreciation for commercial and industrial buildings is reintroduced from the 202...

COVID-19 Wage Subsidy

By now, many whose businesses have been affected by COVID-19 have applied for support through the wage subsidy. If you are one of them, keep in mind that the subsidy comes with specific conditions. If you haven’t yet applied for the subsidy and you are an employer, click here to apply. If you are self-employed, click here. We want to help you keep your business afloat and keep your team together. If anything changes that may affect your eligibility or entitlement to the subsidy, you must notif...

Cost Control

When you're looking at your profit and loss statement, it can be a challenge to see how all the elements inter-relate. You can see your bottom line but how did you get there? It’s a given that you’ll want to maximise your income. Sometimes, however, when factors outside your control are limiting your income, rethinking your costs might be where you can shift your outcomes. Why cost control? Cost control is particularly important in a downturn. With one or the other or both poor production a...