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Chartered Accountants

Trusted advisers of all tax compliance and annual accounting issues facing both individuals and small businesses.

Introduction of Best Start

Posted on Jul 5, 2018 by admin

From 1 July 2018, eligible parents who have a baby born on or after 1 July 2018 will receive a Best Start payment of $60 per child. Eligible individuals will receive $60 a week until the baby turns one regardless of household income. For those with a household income of less than $79,000, you will receive $60 a week until the child turns three. The eligibility requirements are as follows: – You must be the principal caregiver of the child – You must be a New Zealand resident or citizen and have been in New Zealand for a continuous period […]

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Budget 2018: Ensuring fairness across the tax system

Posted on Jun 7, 2018 by admin

This year’s Budget focused on the Government’s commitment to creating a fairer tax system for all New Zealanders. New initiatives aimed at cracking down on tax dodgers are expected to generate an extra $726.3 million in revenue. The additional revenue is set to assist the Government in addressing significant under-resourcing of critical public services. Inland Revenue will receive $31.3 million of operating spending over the next four years, and $23.5 million to ensure outstanding company tax returns are filed. This is expected to recover approximately $183.3 million. Initiatives designed to reduce distortion in the tax system are also set to […]

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Registering for GST

Posted on May 25, 2018 by admin

Businesses need to register for GST once they earn more than $60,000 in 12 months. Penalties may be enforced if businesses do not register when they are required. This applies to all business structures including sole traders, contractors, those in a partnership and companies. Although business owners need not register if they do not think they will turnover that much, voluntary registration means you may be able to claim a GST refund. Once you register, you must complete regular GST returns. When registering, you must decide on how often you will file returns, i.e., monthly, two-monthly or six-monthly. You will […]

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Deductibility of legal expenses for rental property investors

Posted on May 11, 2018 by admin

Previously, rental property investors could not deduct legal expenses under section DB 62 unless they were in the business of providing residential rental accommodation. Recent changes have been made to allow property investors who are buying a residential property to access these deductions. Under section DB 62 of the Income Tax Act 2007, an individual can deduct legal expenses if they are $10,000 or less in an income year, including legal expenses that relate to spending on capital assets such as property. The legal expenses still need to meet the general permission of being incurred in deriving income or as […]

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Recent tax changes

Posted on May 3, 2018 by admin

The beginning of April marks the start of the new financial year in New Zealand. And along with the new financial year, there are many tax changes that have come into effect. Here are four important tax changes affecting employers, individuals and contractors: The bright-line test The bright-line test for residential property has been extended from 2 years to 5 years from 29 March 2018. The extended bright-line test only applies to properties for which an agreement to purchase the property was entered into on or after 29 March 2018. The 2-year bright-line test will remain for properties entered into […]

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Changes to provisional tax

Posted on Apr 16, 2018 by admin

Small businesses, sole traders and contractors can choose a new pay-as-you-earn option rather than paying provisional tax instalments several times a year as changes to pay-as-you-earn tax have come into place this April. The changes were made to help small businesses pay provisional tax based on their cash flow rather than the previous year’s earnings or estimated earnings for the current year. Paying provisional tax as you earn profit provides more certainty about cash flow. This new method is known as the Accounting Income Method (AIM). It is optional and only available for businesses with an annual turnover of less […]

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Short term rentals: the basics

Posted on Feb 2, 2018 by admin

Entering into the short-term rental field can be a very lucrative decision, but there are considerations to be made. To ensure you cover all bases and don’t find yourself caught out financially, make sure you understand the following: Tax obligations Remaining compliant in terms of your tax obligations when you rent your property as a short-term rental is important. According to the New Zealand Government, you: – Must include income generated through providing accommodation on an Individual tax return (IR3). This is due by July 7th each year. – Must keep clear and accurate details of all income and expenses […]

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Claiming expenses on work-related trips

Posted on Dec 21, 2017 by admin

When travelling for business or paying for employee travel there are many daily expenses that can be claimed. Generally, you can claim for flights, taxis (or mileage if you use your own car), accommodation, meals and snacks when you are away from home on business travel. For work-related meetings, conferences or training courses that require an overnight stay, employers can claim the cost of accommodation. If an employee is working away from home for an extended period, you can claim for accommodation or any accommodation allowance paid providing it is for a period of no more than two years (or […]

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Boost for tertiary education

Posted on Nov 22, 2017 by admin

The Government has announced that it will be introducing a new programme to make tertiary education and training more affordable. From 1 January 2018, the Government’s first 100 day programme will involve providing a $50 a week boost to both student allowances and loan entitlements for living costs and will make the first year of tertiary education-fees free. These changes will affect more than 130,000 students New Zealand wide. Student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week. The increase will be $1000 net a week where […]

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Managing employer returns

Posted on Oct 27, 2017 by admin

There have been proposals for changes to the management of employer returns. The Government has announced that changes will be made to the process of filing employer returns, with the main change proposed being to file returns based on the business pay cycle rather than based on the calendar month. You won’t have to make the return on the payday, you will have time to do this. On top of this, payment due dates for your PAYE and other deductions won’t change. There are multiple benefits to this change, including: Having current information on hand and fresh in your mind, […]

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I have used the Accountancy Services of BDS Hughes since they opened their practice in Orewa. I am more than pleased with the way they have looked after our financial and tax business interests and especially appreciate the fact that I can ring Garry anytime and get his expert advice whenever I need it. I thoroughly recommend BDS Hughes to all other businesses for people who require a friendly no hassle accountancy team.
Robyn PedersenAccountsBusy Bobcats

Latest news

KiwiSaver for new employees: what you need to know

Posted on August 3, 2018 by BDS Hughes

Upon hiring a new employee, there is a range of obligations and responsibilities you will have to meet when it comes to KiwiSaver. Start the enrolment process Firstly, you will be required to check whether they are eligible to join KiwiSaver. The employee needs to be enrolled in KiwiSaver (providing they are eligible for automatic enrolment) unless you offer an approved alternative superannuation scheme. You must provide every new employee with KiwiSaver information (KS3), including a KiwiSaver deduction form (KS2) and an Opt out request (KS10) form. Ensure you keep a copy of the KS2 form for your records. If […]

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