News

The end of the tax year is on 31 March 2018. Here are a number of ways you can straighten things up in advance:

Think about. …Deductions

Bad Debts
Write bad debts off in your debtor ledger before balance date so you can claim a deduction. Make sure your records show you have taken reasonable steps to recover the debt prior to write-off. Note the details so we can check the GST adjustments.

Employee Expenses
You can claim deductions for holiday pay, bonuses, redundancy payments, long service leave etc., if you commit to them before year end and pay them within 63 days of balance date. Check holiday pay has been calculated correctly.

Expenses
Can you pre-pay expenses such as stationery, postage and courier charges before 31 March? You may be able to claim for them. Check with us. There are limits to how far some prepaid expenses are claimable, such as on rent, insurance, plant and equipment maintenance contracts, travel and accommodation.

Fixed Assets
Are you still using all of them? Can some be written off?

Repairs/Maintenance
Complete planned maintenance or repairs before year end for a tax deduction. Ask us if you aren’t sure whether the expenditure is classified as repairs and maintenance (which would be deductible) or as a capital expense (which wouldn’t).

Stocktake
Dispose of obsolete stock by year end or write it down to its net realisable value (the lesser of cost or market value). If your stock is worth less than $10,000 and turnover for the year less than $1.3m, you won’t need to include your stock movement for tax purposes.

Vehicles
Don’t forget to note your odometer reading at year end. If you keep logbooks noting business and personal use, mileage and costs, ensure these are all in order.

Think about.…Income

Credit Notes
Look for credit notes issued to customers after balance date but related to sales made prior to balance date. Note these so you can reduce your taxable income for the current year.

Increased Income
Is this year’s income a lot higher than last year’s? If so let us know. It might be a good idea to consider making a voluntary provisional tax payment.

Losses
Did your group of companies have losses in 2017? Groups of companies may offset profits and losses against each other if you make loss offset elections and subvention payments by 31 March. We can help you with this.

Retentions
Check contracts for the terms on retentions owing. Have you invoiced retentions but they are not payable until work is complete in a subsequent tax year? They won’t count as assessable income for this year. However, If they are payable this year they are assessable income. Note retentions you have invoiced which are not receivable until the next tax year.

If you have any questions or concerns regarding your end of tax year preparation then don’t hesitate to contact us – we are here to help.

We are recruiting…
Business Advisory – Assistant Client Manager

Required for one of the fastest growing accounting firms in the top of the South Island. This progressive three partner CA firm has an impressive reputation in the market for the quality of its business advisory, and professional accounting services in the Nelson, and Marlborough regions. The firm offers leading technical expertise in a number of areas, including financial accounting, management reporting, tax, management consulting, and advisory.

We work with a wide range of clients across industries such as aquaculture, manufacturing, construction, agriculture, horticulture, viticulture, forestry, retail, property development, and hospitality to name just a few.

We have a great opportunity for a bright individual, at a junior level, to join our advisory team in Nelson. We seek an Accountant with a depth of experience and an understanding of the complexity of finance operations, reporting requirements, and best practice around systems, controls, maintenance and configuration.

Your strong relationship management skills will compliment your ability to interpret business needs and your customer service approach will enable you to provide the appropriate level of business support, financial modelling, and reporting that our clients require.

This is a multifaceted role which will suit a candidate with strong hands-on financial ability, along with commercial nous to work within an environment which is busy, and yet has a youthful energy about it.

Ideally, you will have:
– The ability to communicate and liaise effectively across the organisation, and with clients.
– A solid and proven background in the core accounting roles.
– A commercial understanding around systems, inventory, cost control, budgeting, forecasting, and reporting.
– Excellent system skills with the ability to interpret data quickly and efficiently.
– A mind for numbers and the ability to translate numbers well for nonfinancial stakeholders
– The ability to manage multiple projects and work effectively to deadlines
– A strong customer focus and be known for your ability to build & maintain effective relationships.
– Attention to detail.
– Self-motivated and enjoy working as a team.
– Thrive on quality and success.
– Experience with a number of accounting systems such as CCH iFirm, MYOB, AO, Banklink and Xero is advantageous but not essential as full training will be given to the suitable candidate.

What you need:
– 3+ years of BAS experience in a New Zealand CA environment.
– Excellent verbal and written skills, and the ability to liaise with a range of clients.

This role offers a competitive salary for the right candidate as well as ongoing professional development, and external training courses. We are an ATE and will support your professional development through in-house and external training.

To register your interest and to find out more about this opportunity, please contact Ben Halliday: bhalliday@jacal.co.nz

With the countdown to Christmas well underway it’s a good time to revisit some of the tax rules when providing entertainment and gifts to staff and customers.

While a cash bonus may be welcomed, PAYE will need to be returned and it is important to bear in mind it can affect an employee’s entitlements to working for families’ tax credits, student loan repayments, and other social assistance.

A Christmas party for staff will be subject to the entertainment rules for tax purposes, meaning you will only be able to claim a 50% tax deduction for the costs of throwing the party. The same rule applies for any after works drinks.

Gifts of food and drink to customers are only 50% deductible. However, other types of gifts such as vouchers or soaps are 100% deductible.

A Christmas gift to your staff of wine or ham will be 100% deductible, but may attract fringe benefit tax (FBT) as an unclassified benefit if certain de minimis thresholds are exceeded. For quarterly FBT filers the de minimis threshold for all unclassified benefits provided to an employee is:

• $300 or less for the employee per quarter; and
• $22,500 for all employees in the current quarter and three preceding quarters.

As you can see from this brief overview there are definitely things you should consider before getting too carried away with festive cheer. For more information we recommend talking to one of our tax advisors – we’re here to help.