End-of-Year Tax Checklist: Ensure Cash Flow and Compliance

As you check off items on your end-of-year tax checklist, consider the following rules to keep your cash flowing and ensure compliance:

1. Weather and COVID-19 Relief: 

If recent weather events or ongoing COVID-19 impacts have affected your cash flow or ability to make tax payments and file returns, you may be eligible for relief from use of money interest and penalties. You can also explore instalment arrangements for payments due to the Inland Revenue.

2. Tax Losses as Assets: 

Review your tax losses and determine if you can carry them forward as assets in your accounts. This can be valuable if you plan to raise capital for your business in the future.

3. Small Business Cashflow (Loan) Scheme: 

The scheme has been extended until 31 December 2023, allowing businesses that have repaid their loans to re-borrow until the deadline.

4. Asset Expenditure Review: 

Set aside time to assess your asset expenditure. Identify any necessary assets valued up to $1,000 and consider purchasing them before the end of the tax year. Also, ensure your records are up to date for commercial buildings, as tax depreciation is available for such properties.

5. High-Income Earners: 

If you or your employees earn over $180,000 per year, consult with us to review Fringe Benefit Tax (FBT) implications and your business and investment structure. The 39% marginal tax rate applies to employment income exceeding $180,000, including additional pay such as bonuses, back pay, redundancy, and retirement payments. This is also an opportune time to review dividend payments.

6. Subsidy Record-Keeping: 

Maintain accurate records of any subsidies or payments received, specifying the staff members or business expenses to which they were applied. This ensures proper tax treatment and facilitates record reviews by the Ministry of Social Development if required.

7. R&D Loss Tax Credit: 

Start-up companies can cash out their tax losses arising from eligible research and development (R&D) expenditure, avoiding carrying the losses forward to the next income year. Eligibility criteria apply, and Inland Revenue approval is necessary. Ensure your records of R&D expenditure are up to date.

8. Staff Reimbursements and Allowances: 

Keep a comprehensive record of reimbursements and allowances provided to employees for expenditures. Note the following:

– Telecommunications devices and plans: Reimbursements up to $5 per week are tax-exempt. For amounts exceeding this threshold, the exempt portion varies based on usage.
– Work-from-home (WFH) payments: An additional $15 per week, per employee, can be treated as exempt income for other WFH expenditure.
– Tax-exempt payments for use of furniture or equipment for WFH: Reimburse the depreciation of the item, ensuring the payment is deductible to the employer. The low-value asset threshold of $1,000 applies.

Stay proactive and organized with your tax planning and obligations. Reach out to us today to discuss your specific needs and ensure a smooth transition into the new financial year.


Your Outside Team

Need a bit of assistance with your
business? Contact an Outside Accounting team member today and learn more about
our fixed fees. You won’t regret it.

Aside from business consultation, we
are business accountants Wellington
who offer accountingbookkeeping, payroll services designed to
help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a
call to know more about your needs. We will explain to you how we can improve
your business.


Wellington Accountants | 

Business Accountants | 

Construction Accountants 

Property Accountants 

Contractor Accountants 

Hospitality Accountants |

Property Developer Accountants | Accountants Wellington | Wellington Accountant | Business Consultation | Business Adviser

AddressLevel 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand 

Mail: PO Box 24-457, Wellington 6142

Phone04 889 2975

New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Understanding Changes in Residential Property Taxation

Recent years have seen significant adjustments to the tax landscape, particularly concerning residential property. The government has responded to calls from various quarters to address investor demand in this sector. Notably, recent changes have been initiated to reverse tax policies affecting residential property, aligning with promises made by both National and ACT during their election campaigns.

Read More »
New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: GST on Housing: Avoid Surprise Tax Bills

As we approach May 2024, it’s crucial to address potential GST pitfalls when selling property. Over the past decade, there have been instances where property sellers, unaware of GST implications, faced unexpected tax bills, especially those converting residential properties into holiday rentals or using them for business.

Read More »