Whitehall Accounting Limited

Reminders and important dates

15 January - Provisional tax installments, student loan interim payments, GST and employers' returns and payments due

28 January - GST returns and payments due

7 Feb - student loan end of year bill due

7 Feb - End-of-year income tax and Working for Families bills are due

28 Feb - GST return and payment is due for the taxable period ending 31 January

28 Mar - GST return and payment is due for the taxable period ending February

28 May - GST return and payment is due for the taxable period ending 30 April

28 Jun - GST return and payment is due for the taxable period ending 31 May

28 Jun - Provisional tax payments are due if you have a March balance date and use the ratio option

7 Jul- Income tax returns are due if you do not have an extension of time

28 Jul - GST return and payment is due for the taxable period ending 30 June

28 Aug - GST return and payment is due for the taxable period ending 31 July

28 Aug - Student loan interim payments are due; they count towards your end of year repayment obligation

28 Aug - Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options

28 Sep - GST return and payment is due for the taxable period ending 31 August

30 Sep - Student loan payments are due if you're based overseas and do not have a repayment holiday

28 Oct - GST return and payment is due for the taxable period ending 30 September

28 October - Provisional tax payments for ratio option customers and GST returns and payments due

28 November - GST returns and payments due

Newsletters

Property interest limitation rules

Since 1 October 2021, the following rules apply. Interest cannot be claimed for residential property acquired on or after 27 March 2021 unless an exclusion or exemption applies. The ability to deduct interest is being phased out between 1 October 2021 and 31 March 2025 for properties acquired before 27 March 2021. Interest deductions for any new loans drawn down on or after 27 March 2021 will not be allowed from 1 October 2021 onwards. If your rental property is financed by a loan in foreign currency, any interest is non-deductible from 1 October 2021 unless it is refinanced with a New Zealand dollar loan.

Reduced self-employed income

If you are a self-employed and have a significant reduction of income. You can apply for a tailored tax code for your reduced annual income. You can apply for a certificate of exemption ; certificates of exemption can only be used for schedular payments. They cannot be used for salary or wages.

Loss carry-back scheme

Loss carry-back scheme is available if you're expecting to make a loss in the 2019/20 or the 2020/21 year.

Provisional tax option for small businesses

Small businesses that have turnover of less than $5 million a year can work out their provisional tax using the accounting income method (AIM).

AIM uses new functionality included in approved accounting software to work out payments. You can continue to use another provisional tax option if you think your business won't suit AIM. It will suit your business if you have:

irregular or seasonal income
accounting software or want to start using accounting software.

Once you've opted in to AIM you'll only pay provisional tax when your business makes a profit. This will help you to avoid cash flow problems.

As long as you make your payments in full and on time, there is no exposure to use-of-money interest. If your business makes a loss you can get your refund straightaway rather than waiting until the end of the year.

You can start using AIM as an option for provisional tax from 1 April 2018.

Manufacturers

Zero-rating of tooling costs to non-residents

New Zealand manufacturers can zero-rate the supply of tools if the tools are: • used in New Zealand solely to manufacture goods that will be exported, and • supplied to a non-GST registered non-resident. The type of tools includes jigs, patterns, templates, dies, punches and similar machine tools. The tools don’t have to be exported with the goods to be zero-rated, but can’t be used to manufacture goods that will be supplied in New Zealand.

Your'll need to keep details of the tools used solely for nonresidents separate from tools used for both New Zealand and non-resident customers. The income from the tools will be recorded and shown in your GST return as zero-rated along with the income from the exported goods. You may need to adjust any accounting programs you use that shows the income separately.

Farmers

Mixed-use assets (holiday homes, boats and aircraft)

A mixed-use asset is If your assets are used for both private use and income-earning use, and it's also unused for 62 days or more during the tax year.

Expenses from mixed-use assets fall into three categories:

If an expense relates to both income-earning use and private use, you need to apportion it
You can't claim any expenses for the private use of the asset.
You can claim 100% of any expense solely for the income-earning use of the asset. For example, costs of advertising for tenants for your holiday home.

If you make a loss from your mixed-use asset, sometimes you won't be able to claim the loss straightaway.