Newsletters, Candy Gillespie Ltd, Matamata

CG Update March 2025

Mon, 31 Mar 2025 00:51:31 GMT

CG Update March 2025

End of Financial Year:

Businesses with a March balance date will be sent a green questionnaire.
Whilst providing a checklist for you, this questionnaire is also your instructions for us to compile your financial statements and tax returns.
We are required to keep your questionnaire on file, please sign this and send it to us.

Year end tips:

Do your stock take, dispose of obsolete stock.

Write off any bad debts.

Bonuses and holiday pay amounts payable to staff can be claimed as a deduction for the 2025 tax year if the full amount is paid to the employee by 2 June 2025.

Staff News:

Since our last newsletter, we have welcomed Brathan Balsom to the firm. Brathan is a local lad and is working part-time while studying to be an accountant. Brathan is a long-distance swimmer and spends hours in the pool, lake and ocean. It’s great to have Brathan on board and to be able to support local school leavers with their career progression.

The Big News:

As many of our clients will know, 31 March 2025 also marks the beginning of a new chapter for Keith Earl . Keith has been with Candy Gillespie for 30 years. In that time, he has contributed to our community and clients beyond measure. Since Keith’s retirement was announced there has been an influx of messages from his clients who have appreciated Keith’s support, expertise and friendship over the years.

Keith has been a pillar of Candy Gillespie since 1995. We are incredibly grateful for his contribution. Keith’s retirement has been in the works for a few years. We are fortunate to have had an extended handover period to ensure all his clients continue to receive the level of service they have had from Keith.

With Keith hanging up the proverbial boots, Glen Jenkins will step into a Director role and Keith’s office. Glen shifted to Matamata in early 2024 with his young family. He has enjoyed settling into the community and meeting many of Keith’s clients over the last 12 months.

Unusual Emails & Scams:

Scammers are more active around the end of financial year, often imitating IRD and tempting recipients with the promise of a tax refund. Remain cautious when opening emails and if you are unsure don’t click on links embedded in the email. A call to us to check could prevent bigger issues.

Project Play:

We’re excited to let you know that Candy Gillespie is supporting Project Play to build Matamata’s new destination playground. We believe that having a destination playground will be a great asset for our community. It’s something that we hope Matamata families and visitors to the town will be able to enjoy for years to come.

If you would like to make a donation to this cause, go to the Matamata Futures website. https://matamatafutures.co.nz/project/project-play/

Project Play are also hosting a fun run on Sunday 30 March at Pohlen Park to raise funds.

Dairy Farmers:

With the high payout this season, it is likely your year-end profit will be significantly higher than last year. This means you will be required to pay more tax.
Most dairy farmers will need to pay this additional tax on 28 June 2025 (or 7 May for dairy farmers with a March balance date).
We will review your tax payment due closer to these dates.
For Fonterra farmers, under the current payout schedule, the payout is already at $8.50 and won’t be increasing until August. This means milk receipts will be minimal for May, June and July which could put a strain on cashflow.
If required, there are options available to finance the 28 June tax payment and defer the payment. The cost of deferring is around a 5.5% interest cost.
Drought – Parts of the country have been declared a drought. The main tax relief for this is a more generous opportunity to use Income Equalisation Deposits to spread income between years. We can discuss this with you.

IRD Activity:

In the 2024 budget, IRD was allocated additional funding over four years to increase tax compliance and debt recovery. In the 2024/25 year, specific areas targeted were the hidden economy (cash jobs), GST integrity and increasing audit activity. For every dollar IRD is spending on this activity the expectation is they will recover $8. The bottom line is IRD activity continues to increase and tax compliance is as important as it’s always been.

Employment News:

Minimum wage is increasing to $23.50 on 1 April. Please contact us if you would like updated wage calculations or any further information.
The minimum wage applies to all employees 16 and over, including those paid by salary, piece rates or commission.
For those employees on a salary, please ensure that their hours worked are at or above minimum wage in each pay period.
Give our wages team a call if you need more information.

Working on Public Holidays:

Over Easter, the public holidays are Good Friday and Easter Monday.
Easter Sunday is not a public holiday.
If staff work on a public holiday which would normally be a workday (e.g. Good Friday), they are entitled to receive time & a half plus a day in lieu. Talk to us if you’re unsure.

On the Horizon:

The Dairy Women’s Network “Success Through Inspiration” Conference is your opportunity to dream big, unlock your potential, take meaningful action, and make a difference. This conference features world-class speakers, engaging sessions, networking, and a gala dinner. Connect with passionate, like-minded people, and grow within a supportive dairy industry community.

Conference Details

When: Thurs, 1 May – Friday, 2 May 2025

Time: 11:00am Thursday - 12:30pm Friday

Where: Claudelands Event Centre, Hamilton

Go to the Dairy Women’s Network website for more information.

https://www.dwn.co.nz/dwn2025conference/

Trial Balance Newsletter - March 2025

Mon, 31 Mar 2025 00:45:54 GMT

Click here to read this issue.

Tips regarding business cashflow in tough times
8 ways to have more fun at work
Beware the May 7 tax trap
Don't rely on Artificial Intelligence for disciplinary matters
Keep a close eye on who owes you
Beware - increase in text scams
Minimum Wage increase
Changes to the employment relations act
Government small business cashflow loans (Covid era)
Bitcoin profits taxable
Essential Questions to ask before a major purchase
Tax Calendar

CG Update December 2024

Thu, 19 Dec 2024 23:22:16 GMT

CG Update December 2024

2024 has been another busy year. The US & UK elections were held and have reminded the rest of the world that democracy is alive and well and also that age and prior convictions shouldn’t stop anyone from following their passions.

Closer to home we’ve seen plenty of road cones, political activism, interest rates starting to ease, and a defense of the America’s Cup title – a mixed bag.

While for 2024 the motto has been “Survive until 2025”, it seems that better times are ahead.

Xmas Closure: We will close on Friday 20th December and reopen on Monday 6 ^th January.

Our People: Since our last newsletter, we have had four new staff join the firm:

Colin Tuson is a Chartered Accountant who has joined our Accounting Team. Colin comes to us with a wealth of accounting and taxation experience. Colin has been working in Hamilton and is looking forward to relocating to Matamata.
Wessel van den Berg has also joined our Accounting team having spent several years in public practice and commercial roles. Wessel and his wife have also moved into the area recently.
Samara Theobold has recently joined our payroll processing team. Samara is quickly learning the ropes of our payroll processing function and will be able to help you with your payroll needs.
Divya Sathyanarayana has recently joined us in our GST processing team. Divya and her family moved to Matamata a few years ago and Divya is pursuing her goal of becoming a Chartered Accountant.

We are also sadly saying farewell to a couple of staff:

Sonia Hart has been with us for almost 18 years, and we thank her for her dedication and the work she has done across the office and with her clients. Sonia and her family are moving to the sunny Hawkes Bay and we wish them all the best.
Lindi van Deventer and her family have received an opportunity in Australia and will be relocating in the New Year. Lindi has been a key member of the payroll team and we extend our thanks for her commitment. We wish Lindi and her family all the best for the move.

We have also celebrated some significant milestones during the year:

Lynette Sclater has been working for Candy Gillespie for 20 years. Mrs Sclater began here in 2004 and has been taking care of our clients ever since. We’re looking forward to the next 20 years just as much as Lynette is.

Earlier in the year we held our annual lunch to celebrate and thank all past and present staff members who have joined the 20-year club with our firm. We now have more than 15 members of this club who have dedicated over 20 years to Candy Gillespie clients.

Interest Rates: In their recent interest rate review, the Reserve Bank reduced the Official Cash Rate by 50 basis points to 4.25%. They also indicated that another 50-basis point cut is likely in February. Pundits are expecting the OCR to settle around 3% - 3.25% over the next 12-18mths.

This means mortgage rates are coming down, but the reductions may be limited. The RBNZ stated that mortgage rates may not decrease a huge amount in the year ahead, even if the OCR continues to fall. The OCR tends to impact short-term mortgage rates the most, while longer term rates are influenced by moves in the US rate markets.

Financial Health Check: As the end of the year rolls around, it’s a good time to review a few key decisions in your life and make sure your affairs are in order. We can’t help you with all of them, but we can remind you of some.

Wills – Congratulations! If you’re reading this, you still have time to review your will. Is your Will up to date? Do you need to refresh it?
Trusts – If you have a Family Trust, is it still fit for purpose? Do you still need a Trust? Have you made sure that only the people you want to benefit from your Trust are listed as beneficiaries?
Memorandum of wishes - This sets out how you want your trust to be run when you’re not here to manage it. Just like your Will, this needs to be kept up to date.
Insurance and ACC – Are you sufficiently covered? Are you over- or under-insured?
Kiwisaver for self-employed – if you’re aged 18 – 65 years, make sure you’re investing at least $1,040 per year into your Kiwisaver scheme. That way, you’ll get $520 of free money from the government. You pay a lot of tax, so get some back.

Cyber-attacks/Spam: These are becoming more regular and sophisticated – bad grammar is now a thing of the past. There are a variety of ways hackers can attack, from locking files to sending emails to changing bank account numbers on invoices sent to customers. To help protect your business:

Multi-factor authentication is said to protect businesses from 99.9% of cyber-attacks
Watch out for strange emails, websites or links. DON’T OPEN THEM.
Install software updates as soon as they are available
If you suspect the worst, go offline immediately by unplugging your computer network cables and your router and contact your computer specialist.

Our Predictions for 2025

· Interest Rates Heading south and we will see home loans settle at sub 5% and farm loans slightly higher than that.

· Milk Payout $10 and holding strong

· Inflation On the way south, but don’t expect the increase in rates and insurance to stop.

· Sport Chiefs to win the Super Rugby title, and Djokovic to win a 25th Grand Slam.

· Travel More roadworks, but fewer road cones in 2025.

Make the most of the summer break to spend some time with your loved ones. We wish all our Candy Gillespie clients a Merry Christmas and a Happy New Year

Trial Balance Newsletter - December 2024

Wed, 18 Dec 2024 00:21:20 GMT

Click here to read this issue.

Revive, Refresh, Re-Focus
EMA Case Summary - employees must be consulted on transferring in a business sale
Trust - a key element of brand loyalty
Extra pay when employment ends
Ethical disposal of old devices
Undercharging - a recipe for disaster
Contractor or Employee
Tax Calendar

Trial Balance Newsletter - September 2024

Thu, 10 Oct 2024 01:53:37 GMT

Click here to read this issue.

Tips for using AI in business
Be wary of beneficiaries becoming trust settlors
Planning critical for survival
Navigating the NEW GST RULES for 'listed services" and digital platforms
Interest deductions on residential rentals
Strategies for building wealth
Interest deduction on rental property
Tax Calendar

Trial Balance Newsletter - June 2024

Sat, 29 Jun 2024 23:47:06 GMT

Click here to read this issue.

Items of interest include:

Unveiling NZ's business metamorphosis
Invest in yourself - the ultimate path to success
Company vehicles kept at home but used for business
Changes to personal income tax thresholds
90-day trial period
Disposal of trading stock at below market value
Trustee income to be taxed at 39%
Shareholding continuity and different classes of shares - watch your imputation credits and losses
Mileage rate
Minimum wage increase from 1 April
Bright-line test on property held briefly
Knowing your numbers

CG Update May 2024 - Rural Edition

Thu, 30 May 2024 23:40:21 GMT

CG Update May 2024 - Rural Edition

End of Financial Year:

Businesses with a May balance date will receive a green questionnaire from us.
Whilst providing a checklist for you, this questionnaire is also your instructions for us to compile your financial statements and tax returns.
We are required to keep your questionnaire on file, PLEASE SIGN AND SEND IT IN.

Livestock Numbers:

Here are a few tips to help you accurately record your livestock numbers.

· It is a lot easier if it’s done on or near to balance date.

· Don’t include heifers coming into the herd in the cow numbers, these are R2 heifers at 31 May.

· Calves born after last year’s balance date and before this year’s balance date are categorised as Rising 1. Autumn-born calves are R1 calves at 31 May. Please show 2024 autumn-born calf numbers separately on the questionnaire.

· Don’t forget to include carry-over cows, stock out grazing or leased out that you own.

Farmer Outlook

· For May balance date Fonterra farmers, your payout for the 2024 financial year will be about $8. This is made up of last years deferred payments of $1.39 and the $6.55 advance for this season.

· Although milk price is lower compared to 2023, costs also appear to have been lower which means profits did not drop as much as was expected earlier in the season.

· Early indications are for a higher payout for 2025. The NZX Futures market is currently predicting about $8.40 - $8.50.

· All going well, interest rates should be at their peak which would suggest that if you are going to fix, a shorter term is better.

· Cashflow is going to be tight for many farmers through the winter. Based on the current Fonterra Schedule, the July retro payment is going to be minimal at 10 cents.

· Pay attention to your costs and work to minimise the impact of these price increases on your business where possible.

· Banks do have a positive long-term outlook on Dairy Farming. Be proactive around your requirements. Start with a budget and don’t be afraid to discuss interest rates with them.

· Remain optimistic and maintain a long-term view.

Provisional tax – 28 June instalment:

May Provisional taxpayers will soon receive their last instalment notice for the 2024 provisional tax commitment which is due on the 28 ^th June 2024.

Using IRD’s standard uplift calculation, this tax payment is based on your 2023 tax return plus an uplift of 5%.
In some cases, we will be reviewing your actual profit for the year to date in order to give you a better estimate of what you need to pay for the 2024 year. We may be able to adjust your payment accordingly.
To assist us, please send in your GST paperwork ASAP in June and let us know your production for the year.
Please talk to us if you would like us to review your provisional tax payment notice we send out or would like to defer the timing of your tax payments.

Tax Deferral options:

Rather than using your overdraft to pay your tax, there is an option to defer the tax payment using Tax Pooling.

· We use Tax Management New Zealand (TMNZ) and can defer the tax payment for an interest cost that is cheaper than that charged by the IRD.

· A common scenario is clients deferring their 28 June tax payment until November when cashflow is picking up. Talk to us if this is of interest to you.

Xero Software:

Due to our banklink (MYOB) GST processing software being made obsolete, we have converted most of our clients to Xero in the past few months. We will be processing your 2024/25 records in xero from 1 June 2024.

For those of you who we prepare your GST returns for, there is no real change apart from the GST cashflow reports you receive from us will look different to what you have received in the past.

For those of you who will be processing your own records and GST returns in Xero, we will have some training with you once some of your live data is available. Remember we are always here to help so please contact the team at any time if you are unsure.

Budgets:

Now is a great time to put together a budget for the 2025 season:

It is important to have a robust financial plan rather than relying purely on good fortune.
It helps you clarify the decisions you need to make.
It will give direction on where you are going.

The key then is to monitor your actual performance compared to your budget, compared to last year and even an estimate of your end of year position based on a combination of your actual and budget figures. We can provide that information by adding the Figured software to your Xero subscription.

Please let us know if you would like us to assist you with a budget, we have all your financial information and history.

Wages & Payroll:

If you’re having headaches with paying your wages and filing your PAYE, we have a dedicated team working specifically on employment and payment of staff.

· We can also handle your IRD filing requirements.

· If you are wanting help with employment agreements, wages calculations for new or existing employees, or final pay calculations, please contact us.

· We can advise on payroll software which can be used for keeping timesheets and preparing wages payments and filing with the IRD.

Minimum Wage:

The minimum wage from 1 April 2024 is now $23.15 per hour.

You may need to check what hours your staff are working to ensure they’re at least being paid the minimum hourly rate, particularly over the calving period.

It’s better for you to pay your staff fortnightly rather than weekly so the payroll covers the typical roster and includes days off.

Accommodation:

A house with the job is a point of difference that farm employers should be using to attract workers.

· Farmers who provide accommodation to staff as part of their package should use market value rents as the taxable value of the house is included in the wage calculation.

· A higher house value also helps you meet minimum wage requirements.

Wages to children:

Wages to children are taxed at source like other wages. Paying your kids for getting the cows in or pulling weeds is still very tax efficient as they’ll mostly fall within the 10.5% tax threshold. To ensure that a tax deduction is permitted:

- The wages should actually be paid, we recommend an automatic payment into the child’s bank account.

- You need to register as an employer.

- The wages must be for genuine work done and must be at a market rate. There is no minimum wage for children under 16.

- The child must complete an IR330 and have PAYE deducted.

- All employees, including your own children, require an employment contract.

CG Update March 2024

Wed, 06 Mar 2024 22:29:26 GMT

CG Update March 2024

End of Financial Year:

Businesses with a March balance date will receive a green questionnaire from us.
Whilst providing a checklist for you, this questionnaire is also your instructions for us to compile your financial statements and tax returns.
We are required to keep your questionnaire on file, PLEASE SIGN AND SEND IT IN.

Year end tips:

- Do your stock take, dispose of obsolete stock.

- Write off any bad debts.

- Bonuses and holiday pay: amounts payable to staff can be claimed as a deduction for the 2024 tax year provided the full amount is paid to the employee within 63 days of balance date.

Staff News: Since our last newsletter we have welcomed two new staff to the firm.

Cara Jeffery has recently joined the annual accounting team coming from another Chartered Accounting firm in Hamilton. She has great experience with Commercial clients in xero and is now learning farm accounting and reconciling livestock. Having come from a farming background in Morrinsville, the farming terminology is familiar and she is picking things up quickly. Cara lives in Morrinsville and is currently building a new home.

Glen Jenkins has relocated his family from Wellington and is working in Keith Earl’s team. Glen worked for KPMG when he was fresh out of university but in recent years has been working in government departments. Glen is married to Bridget and has two young children with 1 due at Easter.

Wages & Payroll:

The Minimum wage increases to $23.15 per hour from 1 April 2024.
The “training or starting out” wage increases to $18.52.
ACC and SL (student loan) rates also change from 1 April which will also change net payment amounts paid.
If you have set up an Automatic Payment for net wages, this wage amount will need to change. Give us a call to work out your new net wages calculations.

Working on Public Holidays:

Over Easter, the public holidays are Good Friday and Easter Monday.
Easter Sunday is not a public holiday.
If staff work on a public holiday which would normally be a workday (e.g. Good Friday), they are entitled to receive time & a half plus a day in lieu. Talk to us if you’re unsure.

Trust and the 39% Tax Rate:

It is highly likely that from 1 April 2024 the effective Trust tax rate will increase from 33% to 39%, in some shape or form.
This 6% increase will have an impact for you if your Trust generates income and it is retained in the Trust
Note that we can continue to allocate income out as beneficiary income and will do so to utilise individuals lower marginal tax rates where we can.

IRD activity and phone calls:

With the cupboard pretty empty at the beehive, we have noticed that the IRD are currently more proactive chasing tax arrears and making phone calls. Payment arrangements are an option as well as using tax pooling to pay income tax arrears. Tax pooling may also be an option for you to finance your upcoming provisional tax obligations and preserve cashflow.

Trial Balance Newsletter - March 2024

Thu, 29 Feb 2024 22:35:23 GMT

Click here to read this issue.

Items of interest include:

Stress & Pressure - how are they different?
8 employee retention strategies
Tax changes loom for rental income
Business Valuation - what is your business worth?
Family trust shareholder - pay dividends now?
Family trusts and children who grow up
GST registration for part-time business
Loans to your company
Shareholder fallouts
Tax Calendar

Trial Balance Newsletter - December 2023

Thu, 30 Nov 2023 22:26:07 GMT

Click here to read this issue.

Items of interest include:

Embracing self-leadership
How Kiwi companies in Australia can avoid the 'double tax' trap
Inheritances and relationship property
Paid parental leave
Air tags to track your valuables
String of emails - policy may be required
Bright-Line - main home exclusion
Tax Calendar

CG Update December 2023

Thu, 30 Nov 2023 22:19:58 GMT

CG Update December 2023

2023 has been a big year. A change of Government, a Cyclone, another War, a few sporting World Cups, Artificial Intelligence taking over headlines, and a new King.

Xmas Closure: We will close on Friday 22 ^nd December and reopen on Monday 8 ^th January.

Staff News: Since our last newsletter, we have had three new staff join the firm:

Cassie Naea comes to us with a lot of experience. She has been helping out a lot of clients with their Xero questions. Cassie and her husband have 2 young children.
Melissa Trillo has joined our team as a GST processer. Melissa has farming experience and is quickly gaining experience in the accounting world. She and her husband have 3 young children.
Samantha McGiven has recently joined Candy Gillespie. As well as accounting experience, Sam also has experience in banking and the rural industry. Sam and her husband are farming and have 2 children.

We have also celebrated some significant milestones during the year:

Jo Austin has been working for Candy Gillespie for 30 years. Jo began work in 1993 and is now a very experienced senior accountant.
Earlier in the year we held a function to celebrate with all of our staff members who have reached milestones with the firm.

New government tax changes

We don’t know exactly what tax changes the new coalition government will make yet. But National did promise to make some major tax changes if elected. Here are some potential changes that could affect you:

Adjustments to tax brackets: National had proposed changes to tax brackets for individuals, designed to adjust for inflation.

Current Tax Bracket Tax Rate Proposed Tax Bracket

Up to $14,000 10.5% Up to $15,600

$14,000 to $48,000 17.5% $15,600 to $53,500

$48,000 to $70,000 30% $53,500 to $78,100

$70,000 to $180,000 33% $78,100 to $180,000

Over $180,000 39% Over $180,000

There has been no mention of a change to Labour’s proposed 39% tax rate for Trusts, so this may go ahead from 1 April 2024. We’ll let you know of any tax planning requirements that may result from this change.

Reinstate interest deductibility on rentals and a two-year bright line test: National has said it will gradually return to 100% interest deductibility on residential investment properties. This will happen in stages over the next three years. The Brightline Test, which is currently set at 10 years, would reduce to two years.

We will be looking out for the tax changes as the new Government makes decisions and we’ll keep you updated.

Xero Software: Behind the scenes, we have been changing our data processing software from Banklink to Xero. The Banklink software has been great but its owner, MYOB, has decided that time is up for Banklink. This required us to find the best alternative, so we have chosen Xero. We have already converted many of our commercial businesses. In the New Year we will begin the process with our farming entities. There will be very little change at your end, but we do require new bank authority forms to be signed.

Keep an eye on your Cashflow: Steady cash flow is the fuel that powers your business. But when you’re busy working hard in your business it can be easy to let it slip. Here are some tips to keep the cash flowing:

Invoice quickly - good debtor management is crucial, so send invoices quickly, make sure your payment terms are clearly displayed and chase up late payers.
Make it easy - offer mobile, online, credit card or Eftpos payment options to make it simple for customers to pay you.
Take advantage of technology – make use of cloud accounting to easily send invoices and keep track of who has paid you.
Be one step ahead - use cash flow forecasting to predict your expected income and costs.

Christmas Parties, Gifts & Bonuses: A reminder at this time of year:

Entertainment costs for Xmas Functions are only 50% deductible.
Food & drinks given to staff or customers are only 50% deductible
Gifts to customers that don’t include food & drink are 100% deductible.
Christmas bonuses by way of cash (wages) are taxable to employees as part of the PAYE system. Be aware, bonuses are taxed in a different way to regular wages.
Non-cash bonuses (e.g. gift vouchers) are tax-free for staff provided the total value per staff member is below $300 per quarter. If you give staff more than $300 per quarter then you will be required to file an FBT return and pay tax on these benefits. Remember that GST cannot be claimed on vouchers.

Working on Public Holidays:

If an employee works on a public holiday which would usually be a work day, they are entitled to receive time & a half plus a day in lieu.
This year the Christmas period public holidays are on Monday and Tuesday. If they are an employee’s usual work day they will be entitled to a paid day off, or time and a half plus a day in lieu if they work on it. If they fall on a usual rostered day off for an employee then they don’t get a paid public holiday that day. Talk to us if you’re unsure.

Other staffing advice: Reminders for the Christmas period:

Employees may request to cash up one week of annual leave per year but make sure they’re taking some time off if you think they need it.
Farmers, if you’re employing relief milkers, make sure they fill out an IR330. If they don’t show you an exemption certificate and you don’t withhold any tax from them, it is not tax deductible for you.
If we process your PAYE, please let us know about any staffing changes.
Remember to keep all your time-sheets up to date.

Our Predictions for 2024

· Interest Rates We hope they’ve peaked and rates will start easing back later in 2024.

· Economy A deepening budget deficit will be revealed.

· Inflation Will be stubborn but will start to ease as interest costs continue to bite

· Employment Some good staff will pop up but there won’t be mass unemployment

· Milk Payout A slow growth back to $8.

· Sport NZ to win 6 golds at the Paris Olympics

Be sure to take some time this summer to spend time with your loved ones. We wish all our loyal Candy Gillespie clients a Merry Christmas and a Happy New Year

Trial Balance Newsletter - September 2023

Tue, 10 Oct 2023 02:01:37 GMT

Click here to read this issue.

How to retire EARLY
How to maximize opportunities as an Accredited Employer
ChatGPT at work - crafting and effective company policy for AI usage
Biking & scooting to work
GST on software payments
Backdated payments from ACC
Interest deduction on rental property
Creative ways to use a diary
Property sharing agreements
Tax Calendar

CG Update May 2023 - Rural Edition

Tue, 02 May 2023 23:07:14 GMT

CG Update May 2023 - Rural Edition

End of Financial Year: If your Financial Year ends 31 May you will receive a green questionnaire from us. Even if you think there is nothing to fill out, please sign the front page and send it in.

Livestock Numbers: Here are a few tips to help you accurately record your livestock numbers.

· It is a lot easier if it’s done on or near to balance date.

· Don’t include heifers coming into the herd in the cow numbers, these are R2 heifers at 31 May.

· Don’t forget to include carry over cows, stock out grazing or leased out that you own.

· Calves born after last year’s balance date and before this year’s balance date are categorised as Rising 1. So autumn-born calves are R1 calves at 31 May. Please show 2023 autumn-born calf numbers separately on the questionnaire.

Farmer Outlook

· The expected Fonterra payout for a May balance date will be about $8.30.

· Early indications are for a similar payout for 2024. The NZX Futures market is predicting about $8.40 currently.

· Farm costs have risen significantly, particularly feed and fertiliser. Pay attention to your costs and work to minimise the impact of these price increases on your business where possible.

· All going well, interest rates should be near their peak which would suggest that if you are going to fix, a shorter term is better.

· Banks do have a positive long-term outlook on Dairy Farming. Be proactive around your requirements. Start with a budget and don’t be afraid to discuss interest rates.

· Talk to your bank about temporarily reducing your principal repayments. Nobody likes surprises so discuss issues early.

· Remain optimistic and maintain a long-term view.

Dairy Farmers Cashflow: With a static payout and increasing costs, cashflow is going to be tight for many farmers through the winter.

Your bank may allow you to put a hold or reduce your principal repayments over the short term. Hopefully they realise that there’s no point increasing your overdraft to make your principal repayments.
The IRD will be expecting a large 28 June tax payment based on the 2022 year’s larger profits. We will be reviewing these tax amounts and look to reduce these where possible.

Tax Tips for Dairy Farmers before 31 May: Tax deductible expenditure includes:

R&M on tracks, water and fencing;
Applying fertiliser.
Prepay your Road User Charges before 31 May.
Stock up on farm stores such as feed, fuel, fertiliser, and animal health products. The total value of unused stores on hand at balance date must be below $58,000 to be a tax saving.
You don’t need to pay for these before 31 May, but the invoice needs to be dated in May.
Assets under $1,000 are immediately deductible, but a new ute or tractor won’t reduce your tax bill much.

Budgets: Now is a great time to put together a budget for the 2024 season:

It is important to have a robust financial plan rather than relying purely on good fortune.
It helps you clarify the decisions you need to make.
It will give direction on where you are going.

Please let us know if you would like us to assist you with a budget, we have all your financial information and history.

Once the budget is sorted, we can prepare reports that compare actual vs. budget figures on a when preparing your GST returns. This helps you keep track how you are performing compared to budget, or even just compared to last year.

Provisional tax – 28 June instalment: Provisional tax payers are about to receive their last instalment notice for the 2023 provisional tax commitment.

Using IRD’s standard calculation method, this tax payment is based upon your 2022 tax return plus an uplift of 5%.
With reduced payouts and higher costs, most farms will have a lower profit than last year.
Your 28 June tax payment is likely to be lower than the IRD is expecting using the standard uplift.
We will be reviewing your profit for the year to date in order to give you a better estimate of what you need to pay.

Tax Deferral options: Rather than using the overdraft to pay your tax there is an option to defer the tax payment using Tax Pooling.

· We use Tax Management New Zealand (TMNZ) and can defer the tax payment for an interest cost that is cheaper than that charged by the IRD.

· A common scenario is clients deferring their 28 June tax payment until November when cashflow is picking up. Talk to us if this is of interest to you.

Tax Text Reminders: We now email tax payment letters. We can also send out text reminders a few days before your tax is due. Let us know if you wish to make use of this text option.

Wages & Payroll: If you’re having headaches with paying your wages and filing your PAYE, we have a dedicated team working specifically on employment and payment of staff.

· We can also handle your IRD filing requirements.

· If you are wanting help with employment agreements, wages calculations for new or existing employees, or final pay calculations, please contact us.

· We can advise on software which can be used for keeping timesheets and preparing wages.

Minimum Wage is now $22.70 per hour. You may need to check what hours your staff are working to ensure they’re at least being paid the minimum hourly rate, particularly over the calving period.

It’s better for you to pay your staff fortnightly rather than weekly so the payroll covers the typical roster and includes days off.

Accommodation: A house with the job is a point of difference that farm employers should be using to attract workers.

· Farmers who provide accommodation to staff as part of their package should use market value rents as the taxable value of the house to be included in the wage calculation.

· A higher house value also helps you meet minimum wage requirements.

Wages to children: Wages to children are taxed at source like other wages. Paying your kids for getting the cows in or pulling weeds is still very tax efficient as they’ll mostly fall within the 10.5% tax threshold. To ensure that a tax deduction is permitted:

- The wages should actually be paid, we recommend an automatic payment into the child’s bank account.You need to register as an employer

- The wages must be for genuine work done, and must be at a market rate. There is no minimum wage for children under 16.

- The child must complete an IR330 and have PAYE deducted.

- All employees, including your own children, require an employment contract.

Government Budget 2023

One of the major changes in the recent government budget was the increase of the Trust tax rate from 33% to 39% to align with the highest individual tax rate. This follows the IRD’s report and misleading comments in the media that top tax payers aren’t paying their fair share of tax. Most dairy farmers, who have had huge tax bills over the past few years, would dispute this claim.

Although the Trust tax rate has increased, it doesn’t necessarily mean that all Trust income will be taxed at this higher rate because some income can be distributed to beneficiaries. There are also other benefits in holding your assets in a Trust.

Some economists are expecting the increased spending in this budget to fuel inflation and lead to further increases in interest rates in the short term. However Treasury eventually expects higher interest rates to help reduce inflation to 4.5% by the end of this year and back near the 1-3% inflation target by late 2024.

Trial Balance Newsletter - March 2023

Tue, 14 Mar 2023 21:58:27 GMT

Click here to read this issue.

Items of interest include:

Interest pitfalls - if you had a big year
Borrowing money for your company
Year end tax implications
Increase your chances of getting the right staff
Rules change again on tax payment dates
Developing an employee career path - why it's good for business
Keeping business records for seven years
Flu vaccine vouchers and FBT
Land purchase - when not to claim GST
Build to rent - asset class proposed
Refinancing a partnership
6 things your business needs to do NOW
Tax Calendar
Foreign exchange rates

CG Update March 2023

Tue, 14 Mar 2023 21:52:13 GMT

CG Update March 2023

Staff News: Sue Dixon has recently joined our team as a GST processor and is settling into her new role. Sue and her husband run their own farming business.

End of Financial Year:

Businesses with a March balance date will find a green questionnaire enclosed.
This questionnaire is also your instruction to us to compile your financial statements and tax returns. We are required to keep it on file.
Please sign and send it in.

Year-end Tax Tips: The enclosed Trial Balance Newsletter has some tips. Here is a summary of a few:

Pre-pay expenses: P re-paying tax-deductible expenses before 31 March will help to reduce your tax bill. Some categories of business expenses can be pre-paid without any limitations. Most other expense categories have limits but can still be claimed in advance.

Repairs: If any business assets require some R&M, do it now so the expense can be claimed in this financial year.

Bad Debt: Bad debt deductions can only be claimed if it’s written off prior to balance date. Make a decision on your aged debtors. Either call in the debt collectors or accept that it's not going to be paid and write it off.

Bonuses and holiday pay: A mounts payable to staff can be claimed as a deduction for the 2023 tax year provided the full amount is paid to the employee within 63 days of balance date.

Trading stock: Either dispose of obsolete stock or revalue it to the current market value.

Dairy Farmers Tax Tips: If you hope to reduce your tax bill in the next two months before balance date, be sure to spend money on items that are tax deductible.

Tax deductible expenditure includes:

R&M on tracks, water and fencing; and applying fertiliser.
If you plan to stock up on farm stores such as feed, fuel, fertiliser, and animal health products, the total value of unused consumables on hand at balance date must be below $58,000 to be a tax saving.

Wages & Payroll:

Minimum wage increases to $22.70 per hour from 1 April.
If you have set up an Automatic Payment for net wages, this wage amount may need to change. Give us a call to work out new net wages.

Working on Public Holidays:

Over Easter, the public holidays are Good Friday and Easter Monday.
Easter Sunday is not a public holiday.
If staff work on a public holiday which would normally be a work day (e.g. Good Friday), they are entitled to receive time & a half plus a day in lieu. Talk to us if you’re unsure.

Donations: Pay before 31 March to claim the 33% rebate in the current year. Send your donation receipts in with your annual records and we will process your rebate claim.

If you have questions on any of the information in this newsletter, please give us a call.

CG Update December 2022

Sat, 03 Dec 2022 21:45:31 GMT

CG Update December 2022

What a year! And it looks like there will be more head winds to our economy in 2023. Interest rates are rising, costs are soaring and a recession looks imminent and even desired by the Reserve Bank. Well done to those of you who locked in interest rates at 2%. It will be a shock for many when those loans mature and they suddenly become floating loans of 8 or 9%.

There are some positives though. As with all cycles, things will turn again and the economic environment will eventually improve. Look out for opportunities that these market conditions bring. As legendary investor Warren Buffet says, “Be greedy when others are fearful and be fearful when others are greedy”.

Xmas Closure: We will close on Friday 23 ^rd December and reopen on Monday 9 ^th January.

Staff News: Since our last newsletter, we have had two new staff join the firm:

Stephanie Wooller is an experienced Chartered Accountant with a wealth of knowledge. She and her husband Dale also run their own agricultural spraying business.
Jess England is an experienced accountant and comes to us with loads of skills.

We have also celebrated some significant milestones during the year:

Melinda McMillan has been working for 40 years at Candy Gillespie. Melinda began work at the upstairs reception in 1982 and is now a very experienced senior accountant.
Michele Goodwin has been working at Candy Gillespie for 20 years now. When Michele isn’t working hard at Candy Gillespie, she is busy helping husband Todd on the farm.
Anna Davey became Anna Patel. Anna and Jason were married at the beginning of the year.

Sadly for us, Neilar Shuttleworth is leaving our firm. Neilar is moving closer to family and is planning a new career as a nurse which we know she will excel at.

Tax Tips & News:

Brightline Test – if you purchase a residential property that is not your main home and it is sold within 10 years, any capital gain is taxable. For new builds the timeframe is 5 years. This also applies to a change in title, so be careful if transferring title between family members.
Interest on residential rental properties (other than new builds) is no longer fully deductible. For loans taken out prior to 2021, interest is 75% deductible this year and will reduce to 0% deductible over the next few years. However, interest on new borrowing is not deductible at all unless it is for a new build. New builds (post March 2020) qualify for 20 years of 100% interest deductibility.
If you miss a Provisional Tax payment please get in touch with us before you pay it so we can consider alternative payment options which could save you interest and penalties.
IRD Use of Money Interest (UOMI) on overdue tax will increase to 9.21% from 2023.

Xero Software: Behind the scenes, we are changing our data processing software from Banklink to Xero. If this affects you, we will be in touch with specific information. We will be phasing this conversion process over the next year. Initially we will be converting our commercial businesses to Xero, followed by our farming entities. There will be very little change at your end, but we do require new authority forms to be signed.

Internet Banking: In the good old days when we paid a bill, we would write a cheque. It was a relatively safe way of protecting your bank account because the bank would only accept your signature and you would have to complete and sign each cheque. Nowadays, although Internet Banking does offer a lot of convenience and safety features, we find that some people are too trusting of others. If you are not computer savvy and just give your internet banking password to others to help you pay your bills, it’s the same as giving someone your cheque book and showing them how to sign your name.

Nine times out of ten, the person you give the password to will be totally trustworthy, but there are bad eggs who might have all kinds of financial troubles. By giving them the password, they will have access to your funds, and if you’re not keeping an eye on it, you might find yourself on the losing end. It does happen. There are ways for banks to set up proper access for other people if you don’t want to or aren’t able to pay bills yourself online. Talk to your bank about it. We have banking permissions arranged for a number of our clients to set up tax payments through their internet banking. If this is something you would be interested in, give us a call.

Christmas Parties, Gifts & Bonuses: A reminder at this time of year:

Entertainment costs for Xmas Functions are only 50% deductible.
Food & drinks given to staff or customers are only 50% deductible
Gifts to customers that don’t include food & drink are 100% deductible.
Christmas bonuses by way of cash (wages) are taxable to employees as part of the PAYE system. Be aware, bonuses are taxed in a different way to regular wages.
Non-cash bonuses (e.g. gift vouchers) are tax-free for staff provided the total value per staff member is below $300 per quarter and the total annual value for the business is below $22,500. Remember that GST cannot be claimed on vouchers.

Working on Public Holidays:

If an employee works on a public holiday which would usually be a work day, they are entitled to receive time & a half plus a day in lieu.
When a public holiday falls on a weekend and it isn’t an employee’s usual work day, then the public holiday gets moved to the Monday or Tuesday.
For farmers, it can be more complicated to determine which days are public holidays and it can differ between employees depending on their roster. Talk to us if you’re unsure.

Other staffing advice: Reminders for the Christmas period:

Employees may request to cash up one week of annual leave per year but make sure they’re taking some time off if you think they need it.
If you’re employing relief milkers, make sure they fill out an IR330. If they don’t show you an exemption certificate and you don’t withhold any tax from them, it is not tax deductible for you. If we process your PAYE, please let us know about any staffing changes.
Remember to keep all your time-sheets up to date.

We have a dedicated team who can take the headaches out of processing wages and PAYE. If you’d rather leave it to the professionals, please contact Jo Paton at our office. If you have a significant HR issue, we can put you in touch with the right people for advice.

Our Predictions for 2023

· Interest Rates - Will we see double digits? High rates are helping push up our dollar.

· Politics - 2023 election will be a close one.

· Inflation - Costs will continue to rise sharply until the Reserve Bank gets its way.

· Employment - Expect increased difficulty in finding and retaining good staff.

· Milk Payout - There are downside risks, but it should hover near $9.

· Sport - Scott Robertson to become All Black coach.

Be sure to take some time this summer to look after yourself & your loved ones. We wish all our loyal Candy Gillespie clients a Merry Christmas and a Happy New Year

CG Update May 2022

Tue, 24 May 2022 21:17:02 GMT

CG Update May 2022 - Rural Edition

End of Financial Year: If your Financial Year ends 31 May you will receive a green questionnaire from us. Even if you think there is nothing to fill out, please sign the front page and send it in.

Livestock Numbers: Here are a few tips to help you accurately record your livestock numbers.

It is a lot easier if it’s done on or near to balance date.
Don’t include heifers coming into the herd in the cow numbers, these are R2 heifers at 31 May.
Don’t forget to include carry over cows, stock out grazing or leased out that you own.
Calves born after last year’s balance date and before this year’s balance date are categorised as Rising 1. So autumn-born calves are R1 calves at 31 May. Please show 2022 autumn-born calf numbers separately on the questionnaire.

Farmer Outlook

Fonterra payout for a May balance date will be about $9.10. This is up on the previous year which will likely result in larger profits and higher taxes.
Early indications are for another good pay-out for 2023. The NZX Futures market is still predicting over $9. So there is a real expectation for another prosperous year.
Farm costs have risen significantly, particularly feed and fertiliser. Pay attention to your costs and work to minimise the impact of these price increases on your business where possible.
It’s difficult to see a demand for Fonterra shares if there’s only a requirement for 1 share per 3 KgMS. This is reflected in the recent plunge in share price. Hopefully Fonterra can pay a decent dividend, otherwise the share price will remain low. It will be interesting to see whether Fonterra can improve their business profit while paying more for the raw product.
Interest rates are on the rise, especially longer term rates. You need to consider your risk profile and the impact higher interest rates will have on your business. If you don’t need to fix rates to secure your costs, then it’s still likely to be beneficial to stay close to floating. However global uncertainty and changing conditions mean the future of interest rates are hard to predict.

Dairy Farmers Cashflow: With consecutive years of a high payout and a $9+ forecast payout, our dairy farming clients need to be turning their minds to what they are going to do or should be doing with their cash.

Farming efficiently and not wasting cash on things just because it’s there and you can.
Paying off debt vs pursuing other priorities on farm or off farm.
Having a tax plan.

Tax Tips for Dairy Farmers before 31 May: Tax deductible expenditure includes:

R&M on tracks, water and fencing.
Applying fertiliser.
Prepay your Road User Charges before 31 May and get the discount as well.
Stock up on farm stores such as feed, fuel, fertiliser, and animal health products. The total value of unused stores on hand at balance date must be below $58,000 to be a tax saving.
You don’t need to pay for it before 31 May, but the invoice needs to be dated in May.
A new ute or tractor won’t reduce your tax bill much.

Budgets: Now is a great time to put together a budget for the 2023 season.

Please let us know if you would like us to assist you with this, we have all your financial information and history.

Once the budget is sorted, we can prepare reports that compare actual vs. budget figures on a monthly and year to date basis when preparing your GST returns. This helps you keep track how you are performing compared to budget, or even just compared to last year.

Dairybase: If you want to compare your farm’s performance against the DairyNZ benchmark figures please let us know and we can load your financial information for you or send your accounts directly to DairyBase who load your data for a $100 fee.

Provisional tax – 28 June instalment: Provisional tax payers are about to receive your last instalment notice for your 2022 provisional tax commitment.

Using IRD’s standard calculation method, this tax payment is based upon your 2021 tax return plus an uplift of 5%.
With record payouts and still relatively low interest rates, most farms will have a higher profit than last year.
With these healthy profits come large tax bills. Your 28 June tax payment may need to be higher than the standard uplift to prevent the IRD charging interest on shortfalls.
We will be reviewing your profit for the year to date in order to give you a better estimate of what you need to pay.

Tax Deferral options: Rather than using the overdraft to pay your tax there is an option to defer the tax payment using Tax Pooling.

We use Tax Management New Zealand (TMNZ) and can defer the tax payment for an interest cost that is significantly cheaper than that charged by the IRD.
A common scenario is clients deferring their 28 June tax payment until November when cashflow is picking up. Talk to us if this is of interest to you.

Tax Text Reminders: We now email tax payment letters. We can also send out text reminders a few days before your tax is due. Speak to us if you wish to make use of this text option.

Wages & Payroll:

If you’re having headaches with paying your wages and filing your PAYE, we have a dedicated team working specifically on employment and payment of staff.

We can also handle your IRD filing requirements.
If you are wanting help with employment agreements, wages calculations for new or existing employees, or final pay calculations, please contact us.
We also have access to a specialist Human Resources consultant that we refer clients to for tricky employment issues. If you have a problem in this area, please call and we can assist with a referral.

Minimum Wage is now $21.20 per hour. You may need to check what hours your staff are working to ensure they’re at least being paid the minimum hourly rate, particularly over the calving period.

It’s better for you to pay your staff fortnightly rather than weekly so the payroll covers the typical roster and includes days off.

Rosters: If you are having trouble finding staff, perhaps a change in the roster is required so that workers are getting more time off. It will cost you more, but it might help attract better staff.

Accommodation: A house with the job is a point of difference that farm employers should be using to attract workers.

Farmers who provide accommodation to staff as part of their package should use market value rents as the taxable value of the house to be included in the wage calculation.
A higher house value also helps you meet minimum wage requirements.

The wages should actually be paid, we recommend an automatic payment into the child’s bank account.
You need to register as an employer.
The wages must be for genuine work done, and must be at a market rate.
The child must complete an IR330 and have PAYE deducted.
All employees, including your own children, require an employment contract.

Trial Balance Newsletter - March 2022

Wed, 06 Apr 2022 01:14:45 GMT

Click here to read this issue.

Items of interest include:

Building your business
Tax by stealth
Take action if you lose your cellphone
Debt collection in an age of inflation
The overlooked virtue of the Disputes Tribunal
Big change to loss carry forward rules
Getting IRD interest cancelled 2021 year
Tax Calendar
Year end tax implications
Why you need a will in NZ

CG Update March 2022

Wed, 06 Apr 2022 00:54:12 GMT

CG Update March 2022

Staff News: Alisha Young has joined our team as the new receptionist. Alisha comes from an education background but has settled in to her new role. Alisha will be the friendly face to greet you when you come in to visit.

End of Financial Year: 31 March sees the end of the financial year for most businesses. Those businesses will find a green questionnaire included with this newsletter. To accurately calculate your financial performance for the year, a snapshot of your position at balance date is required. When preparing your accounts we need to determine what you own and what you owe at balance date. This questionnaire is also your instruction to us to compile your financial statements and tax returns. We are required to keep it on file. Even if you think there is nothing to fill in, please sign and send it in. Scan and email it back if that’s easier.

Tax Tips: As the financial year end approaches, here are some tax tips to think about:

Pre-pay expenses: P re-paying for tax-deductible expenses before March 31 will help to reduce your tax bill. Some categories of business expenses can be pre-paid without any limitations e.g. stationery, postage, courier bags, and vehicle registration. Most other expense categories have limits but can still be claimed in advance. (See the Trial Balance Newsletter for more detail).

Repairs: If any business assets require repairs and maintenance, do it now so the expense can be claimed before year end.

Work in Progress: Review work in progress. Invoice it or write it off by balance date, otherwise you might be paying tax on income you haven’t received.

Bad Debt: Bad debt deductions can only be claimed if the debt is actually written off prior to balance date. Make a decision on your aged debtors. Either call in the debt collectors or accept that it's not going to be paid and write it off.

Fixed Assets: Review your fixed asset register and decide whether any assets are no longer in use by the business. If they meet the write off criteria, a tax deduction will be allowed.

Bonuses and holiday pay: A mounts payable to staff can be claimed as a deduction for the 2022 tax year provided the full amount is paid to the employee within 63 days of balance date.

Trading stock: either dispose of obsolete stock or revalue it to the current market value.

Tax Tips for our Dairy Farmers: As a result of the recent increases in the milk payout for the 2021/22 season, dairy farmers are generally going to see a significant increase in taxable income for the 2022 financial year. If you are hoping to reduce your tax bill in the next two months before balance date, be sure to spend money on items that are tax deductible. A new tractor or ute won’t help much.

Tax deductible expenditure includes R&M on tracks, water and fencing; and applying fertiliser. If you plan to stock up on farm stores such as feed, fuel, fertiliser, and animal health products, the total value of unused consumables on hand at balance date must be below $58,000 to be a tax saving.

Due to the increased payout, we may be looking to revise your 28 June provisional tax as we expect there to be a significant increase in these tax payments.

Covid Support Payments

A number of businesses are being affected by the requirement for household contacts to isolate. Some businesses are having to shut down for 7 days while staff are isolating, or they simply can’t get supplies delivered. Covid Support payments may be available in these instances.

To be eligible, your business must show a drop of at least 40% in actual weekly revenue as a result of COVID-19 in the community and health measures taken to reduce the spread.

Applications are through IRD using your myIR account. You will need details of your actual drop in revenue to apply, so make sure you have these handy. We can help with this.

Each Covid Support Payment is $4,000 per business plus $400 per full-time employee (up to 50 staff). If you do receive a Covid subsidy, please let us know because it has tax implications.

New Zealand Business Number (NZBN)

To apply for Covid Payments, you will also need an NZBN number. All Companies automatically receive an NZBN. If you are a sole trader, you will need to apply for an NZBN using a Real Me login. It can be quite a painful process and a bit of IT savvy is required, but you are potentially missing out on a lot of subsidies if you don’t have an NZBN.

Other Covid support The Leave Support Scheme and Short Term Absence support are still available if you or your staff are required to test and isolate, as is the Small Business Cashflow Loans Scheme. You can apply for these as well as the Covid support Payment if you are eligible.

Wages & Payroll: The Minimum wage rate increases to $21.20 per hour from 1 April. The ACC Earner Levy is also increasing to 1.46%. This means that if you have set up an Automatic Payment for net wages, this wage amount may need to change. Give us a call to discuss.

If you are hiring new staff and you want wage calculations done, please provide us with all their payroll information as soon as possible. This will allow us time to get it set up before new staff begin. Please don’t wait until you’ve started employing them before asking for a wage calculation.

Working on Public Holidays: Over Easter, the public holidays are Good Friday and Easter Monday. Easter Sunday is not a public holiday. A reminder that if an employee works on a public holiday which would normally be a work day (e.g. Good Friday), they are entitled to receive time & a half plus a day in lieu. Be careful and talk to us if unsure.

Candy Gillespie Payroll Services: Payroll is becoming more complicated each year. We have in-house payroll specialists who can take care of all your wage & PAYE processing. If you are finding it difficult or don’t have time to process wages and PAYE returns, give us a call to discuss letting our experts take care of this for you. We are familiar with a variety of Payroll software providers, so we can advise on this as well.

ACC: Cover Plus Extra (CPX) is a good option for self-employed people. CPX allows you to choose a level of ACC cover to meet your needs. If you’re not already using CPX, call us to discuss your options. Those who already use CPX would have received notification regarding your cover for next year. If it’s correct, it rolls over automatically. If not, complete the changes and send it back to ACC. You can set up an interest free instalment plan over 6 months.

Donations: The IRD provides a 33% rebate on cash donations paid to registered charities. Pay before 31 March to claim the rebate in the current year. Send your donation receipts in with your annual records and we will process your rebate claim.

If you have questions on any of the information in this newsletter, please give us a call.

Trial Balance Newsletter - December 2021

Thu, 16 Dec 2021 23:39:27 GMT

Click here to read this issue.

Items of interest include:

How much should you invest
Signs of a scam
Reimbursement for use of telcos
Bye-bye tax invoices
Ways to grow your business
Family Trusts - new tax law
Keys to sustainable business success
Take control of Direct Debits
Debt Collection in an age of Inflation
New sale rule splits business components
Covid Subsidies and GST
Fringe Benefits
Rental property repairs and maintenance
Immigration Update

CG Update December 2021

Wed, 15 Dec 2021 22:05:38 GMT

CG Update December 2021

What a year! Who would have thought this time last year we would have been in and out of lock down with Covid having such an impact on our lives, businesses and dominating many of our conversations. Some of our clients and families have been affected more than others and our thoughts go out to them. As a country we must learn to live with this pandemic and box on, we hope we can but expect that 2022 will not be all plain sailing.

Office Xmas Hours : Our office will close on Thursday 23 ^rd December and reopen on Monday January 10 ^th 2022.

Staff News : For those of you who haven’t heard, our long serving receptionist, Shelley Usmar, passed away in November. Shelley worked for Candy Gillespie for over 24 years and always greeted clients with a welcoming smile or voice on the phone. Shelley will be sadly missed.

Keith Rea retired in April after more than 52 years in the firm. Keith comes into the office now & then to catch up and is working hard on reducing his golf handicap and enjoying a well-earned retirement.

Since our last newsletter, we have had two new staff join the firm. Jess Talbot is working in Keith Earl’s team having recently worked at Deloitte. Jess is a keen wake boarder and will be showing us all up at our next staff water ski night. Ceri Tarry joined us in November from another local accounting firm. Ceri is in Alan Candy’s team and comes to us with loads of farm accounting experience.

Candy Gillespie Covid Policy :

For the safety of all our staff and clients, we now have an office covid policy. All clients are welcome to visit the office but we ask that you observe the following:

- All visitors MUST please scan in or record your visit when you arrive.

- If you are unvaccinated you must wear a mask and social distance 1m.

- If you are sick or unwell, please reschedule your appointment.

Covid 19 : As the country navigates its way through the traffic light system, government assistance is still available.

- There are no additional rounds of the Resurgence Support Payments & Wages Subsidy planned. Wages subsidy applications are now closed. The 4 ^th – 6 ^th Resurgence Payments (22 Oct – 1 Dec period) are open for applications until the 13 ^th January 2022.

- There is a one-off Transition Payment to help businesses transition to the traffic light system, businesses must have experienced a 30% drop in revenue over a 7 day period. The final day to apply is 13 January 2022.

- Short-term Absence Payment and Leave Support Scheme – this is available to help pay employees who are required to stay at home and await test results or are required to self-isolate, where those employees are unable to work from home. Applications can be made at www.workand income.govt.nz.

- Small-Business Cashflow (Loan) scheme – Applications for this remain open until 31 December 2023. It is interest free provided you repay it within 2 years of draw down, otherwise interest starts at day 1. You may be able to repay the loan and draw it down again to extend the interest free period.

- Paying tax – if you are struggling to pay your tax or can’t pay your tax because of Covid, the IRD may be able to help by cancelling interest and penalties if you contact them and set up an instalment arrangement.

Tax Tips & News :

- From 1 April 2021, the top individual tax rate for income over $180,000 is 39%

- Brightline Test – if you purchase a residential property that is not your main home and it is sold with 10 years, any capital gain is taxable. For new builds the timeframe is 5 years.

- Sick Leave entitlement changed to 10 days as from 24 ^th July 2021.

- If you make IRD payments online, please be sure to pay them into the correct Tax Type, Tax Period (Year) and use the correct IRD number.

- If you miss a Provisional Tax payment (even by one day) please get in touch with us so we can arrange an alternative payment through Tax Pooling. If it’s late, you will fall out of their “Safe-Harbour” tax regime. This means that the IRD will charge ongoing Interest (UOMI) even after you have paid. Using Tax Pooling to catch up on late payments can significantly reduce this interest and avoid penalties.

Land Purchase Price Allocation : The IRD have introduced new rules around having values of individual assets in sale and purchase agreements. We recommend that you talk to us on what values to include. If the values aren’t agreed prior to settlement, the IRD may determine what these values are which could have an unfavorable tax outcome for you.

Cyber-attacks : These are becoming more regular and sophisticated as attackers target businesses by encrypting files that stop you from accessing software and systems. To protect your business

- Use multi-factor authentication. It’s said to protect businesses from 99.9% of cyber-attacks

- Watch out for strange email, websites or links. DON’T OPEN THEM.

- Install software updates as soon as they are available

- If you suspect the worst, go offline immediately by unplugging your computer network cables and your router.

Christmas Parties, Gifts & Bonuses : A reminder at this time of the year

- Entertainment costs for Xmas Functions are only 50% deductible.

- Food & drinks given to staff are only 50% deductible

- Gifts to customers that don’t include food & drink are 100% deductible.

- Christmas bonuses by way of cash (wages) are taxable to employees as part of the PAYE system. Be aware, Bonuses are taxed in a different way to regular wages.

- For businesses, non-cash bonuses (e.g. gift cards or fuel vouchers) are exempt from tax provided the total value per staff member is below $300 per quarter and the total value for the employer per year is below $22,500.

Working on Public Holidays : A reminder at this time of the year if an employee works on a public holiday which would otherwise be a work day (e.g. this year Christmas is on a Saturday and the employee usually works on a Saturday), they are entitled to receive time & a half plus a day in lieu. With the new legislation, Mondayisation happens when an employee’s public holiday which falls on a Saturday or Sunday is moved to the following Monday or in some cases Tuesday. Be careful and talk to us if unsure.

Our Predictions for 2022

- Interest Rates -- Interest rates will go up by 1.5% but then flatten off

- Politics -- Will we see the return of a democracy?

- Covid 19 -- We are in for some headwinds still in 2022

- Inflation -- Expect costs to continue to rise.

- Employment -- Expect increased pressure on retaining good staff.

- Sport -- Novak will get a jab & become the tennis GOAT

- Milk Payout -- Looking strong & will get to $9

It has been a tough year for many, don’t sweat the small stuff and take time this summer to look after yourself & your loved ones. We wish all our loyal Candy Gillespie clients a Merry Christmas and a Happy New Year

Trial Balance Newsletter - September 2021

Tue, 28 Sep 2021 20:37:20 GMT

Click here to read this issue.

Items of interest include:

Cyber Attacks
How to become financially stable
Sick Leave entitlement increases
Interest and rentals
Family Trusts
Cyryptocurrency
Subsidies on electric vehicles explained
Benefits in on-time supplier payments
Tax Calendar
Transferring Shares
Feasibility expenditure
Interest-free period on the Small Business Cashflow Loan

CG Update May 2021

Wed, 26 May 2021 23:00:00 GMT

Rural Edition May 2021

End of Financial Year: If your Financial Year ends 31 May you will received a green questionnaire from us. Even if you think there is nothing to fill out, please sign the front page and send it in.

Livestock Numbers: Here are a few tips to help you accurately record your livestock numbers.

· It is a lot easier if it's done on or near to balance date.

· Don't include heifers coming into the herd in the cow numbers, these are R2 heifers at 31 May.

· Don't forget to include carry over cows, stock out grazing or leased out that you own.

· Calves born after last year's balance date and before this year's balance date are categorised as Rising 1. So autumn born calves are R1 calves at 31 May. Please show autumn born calf numbers separately on the questionnaire.

Dairy Farmers Cashflow: With two consecutive years of a $7 plus payout and an $8 forecast payout announced recently, our dairy farming clients need to be turning their minds to what they are going to do or should be doing with their cash.

1) Farming efficiently and not wasting cash on things just because it's there and you can.

2) Paying off debt vs pursuing other priorities on farm or off farm.

3) Having a tax plan.

Farmer Outlook

· Fonterra payout for a May balance date will be about $7.40. This is up on the previous year's $7.10. In addition, production has generally been the same or higher than last year. This will likely result in larger profits and higher taxes.

· E arly indications are for another good payout for 2022 which was reflected in Fonterra's Forecast Milk Price of $8. Recently, farmers could lock in a fixed milk price of $7.60 (net) so there is a real expectation for another prosperous year.

· Historically, high milk payouts have resulted in low or no Fonterra dividends. It will be interesting to see whether Fonterra can improve their business profit while paying more for the raw product.

· It's difficult to see a demand for Fonterra shares if there's only a requirement for 1 share per 4 KgMS. Hopefully they can make a buck and pay a decent dividend, otherwise the share price will remain low.

· Interest rates have remained low. Over the past few years, those who have kept terms short have benefited. If you don't need to fix rates to secure your costs, then it's still likely to be beneficial to stay close to floating.

Fonterra Capital Structure Consultation: Fonterra suppliers will have received information about the review of the capital structure of the company, together with information about the directors preferred option. It is important that you read and understand this information as this may have a major impact on your farming business moving forward. We would encourage you to form your own opinions on the proposals and have your say during the consultation process either at the local meetings or through your Area Manager. You are likely to be voting on this at the AGM in November.

It will be interesting to watch the banks' position and in particular the value they use for your Fonterra Shares on your Balance Sheet for your security calculation. It may well be nil if there is no market?!

Computer Software: During Fieldays you will see and hear a lot about cloud computer packages such as Xero, MYOB and Cash Manager Rural. If you are going down that track:

1) Please talk to us first so that we can make sure you are getting the right package for you.

2) Make sure we help you set it up properly from the outset

3) Invest in some training so that you are getting it right and utilising all the features.

Land Purchase Price Allocation: If you are selling or buying property or a business it is important that asset values are included in the agreement. If they aren't, there is the potential for an unfavourable tax outcome.

Talk to us before signing a Sale & Purchase agreement.

Trial Balance Newsletter - March 2021

Sat, 20 Mar 2021 22:00:00 GMT

Click here to read this issue

In this issue:

Enhancing your email marketing
Small Business cash flow loan scheme (SBCS)
Short-term absence payment
Resurgence support payment
Leave support scheme
Minimum wage
Increase in sick leave entitlement
Discuss worker mistakes to avoid more mistakes
Tax changes for 2021
Tax Calendar
COVID-19 consumer travel reimbursement scheme
Kilometre rate
No-link merchant misses sales
Habitual buying and selling
Time to write off bad debts
Year end tax implications
5 way to build brilliant customer relationships

CG Update March 2021

Sat, 20 Mar 2021 22:00:00 GMT

People News: We are sad to say goodbye to three valuable staff members.

Keith Rea: Keith is retiring in March. He has worked at Candy Gillespie since he left school 52 years ago. Keith has certainly earned his retirement and we know he has a lot to look forward to with Jane, his children and grandchildren. We at Candy Gillespie deeply appreciate Keith's many years of loyal service and we know all our clients do too. We are currently working with Keith's clients to ensure they continue to receive the same great service that Keith has provided for all these years.

Debbie Hornsey: Deb has worked for Candy Gillespie for almost 24 years. She joined us straight from school, had a break to raise her family, and then couldn't resist coming back. Deb has been great value in the office. Deb leaves us to further her career in the corporate world and we wish her the best.

Latasha Tappin: Tash joined us nearly 9 years ago and qualified as a Chartered Accountant while working at Candy Gillespie. She leaves us to follow her dreams and pursue a career in the corporate world. We wish Tash all the best and we're proud of what she has achieved.

End of Financial Year: 31 March sees the end of the financial year for most businesses. Those businesses will receive a green questionnaire in the post. To accurately calculate your financial performance for the year, a snapshot of your position at balance date is required. When preparing your accounts we need to determine what you own and what you owe at balance date. This questionnaire is also your instruction to us to compile your financial statements and tax returns. We are required to keep it on file. Even if you think there is nothing to fill in, please sign and send it in. Scan and email it back if that's easier.

Tax Tips: As the financial year end approaches, here are some tax tips to think about:

Pre-pay expenses: Pre-paying for tax-deductible expenses before March 31 will help to reduce your tax bill. Some categories of business expenses can be pre-paid without any limitations e.g. stationery, postage, courier bags, and vehicle registration. Most other expense categories have limits but can still be claimed in advance. (See the Trial Balance Newsletter for more detail) .

Repairs: If any business assets require repairs and maintenance, do it now so the expense can be claimed before year end.

Work in Progress: Review work in progress. Invoice it or write it off by balance date otherwise, you might be paying tax on income you haven't received.

Fixed Assets: Review your fixed asset register and decide whether any assets are no longer in use by the business. If they meet the write off criteria, a tax deduction will be allowed.

Bonuses and holiday pay: Amounts payable to staff can be claimed as a deduction for the 2021 financial year provided the full amount is paid to the employee within 63 days of balance date.

Trading stock : either dispose of obsolete stock or revalue it to the current market value.

Tax update: 39% Tax Rate . From 1 April 2021 a new tax rate of 39% will apply to personal income in excess of $180,000. The top rate for resident withholding tax (RWT) paid on interest will also increase to 39%. There may be some tax planning options available to those individuals affected by this change, so talk to us.

Wages & Payroll : The Minimum wage rate increases to $20 per hour from 1 April. Jo Storey is our resident payroll expert and is here to help. If you are hiring new staff and you want wage calculations done, please provide us with all their payroll information as soon as possible. This will allow us time to get it set up before your new staff begin. Please don't wait until you've started employing them before asking for a wage calculation.

The government is currently considering changes to the holidays act. These include:

· Increasing sick leave from 5 days to 10 days

· Allowing staff to take bereavement leave and domestic violence leave from their first day

ACC: Cover Plus Extra (CPX) is a good option for self-employed people. CPX allows you to choose a level of ACC cover to meet your needs. If you're not already using CPX, call us to discuss your options. Those who already use CPX would have received notification regarding your cover for next year. If it's correct, it rolls over automatically. If not, complete the changes and send it back to ACC. You can set up an interest free instalment plan over 6 months.

Rental Property Changes: The Residential Tenancies Amendment Act (RTAA) is now in effect. Rent increases have been limited to once a year. Landlords are no longer able to remove a tenant without giving a reason. You are now expected to allow tenants to settle for longer and make minor alterations to the property to help them feel at home. To reduce risks, make sure you have a robust process in place to select the right tenant for your property.

It's important to put everything in writing. Make sure you have a signed tenancy agreement. Landlords are now required to keep thorough tenancy records and make them available to tenants or the Government upon request. Make sure you have a system to keep good records and all your paperwork is filled in correctly.

Trust Act 2019: A new Trust Act came into force in January which brings increased administration, disclosure and record keeping requirements for Trusts. If you have a Family Trust you should have heard from us or your solicitor by now about this. These are significant changes and do require your consideration. We have completed a review of all Trusts where we act as Independent Trustees. Due to the increased administration requirements we will begin charging an annual fee of $300 plus GST to Trusts for which we act as Professional Trustees.

Review your will, memorandum of wishes and other legal documents. A long standing client died recently and the latest will was dated in the 1980's. One of the nominated executors was already dead making the issue of probate somewhat delayed. This is a timely reminder that circumstances change over time and it's important to keep your important legal documents current.

Kiwisaver: With Term Deposit rates being so low, it's a great idea to maximise your Kiwisaver contributions before 30 June to be entitled to the $520 government tax credit. Make sure you're using the correct Kiwisaver PIR too. Remember, you can still use Kiwisaver if you're over 65.

Accounting Software: Around this time of year there is hype in the accounting software market. "Code your bank statements while you sit on the beach" the advertisers say. That sounds boring, even for accountants.

Candy Gillespie prides itself on our team of trained staff who are dedicated to efficiently process your records to ensure your various IRD returns are correct and on time. We are able to work with your software – Xero, MYOB or Cash Manager. We are Xero certified and can get a 25% discount for clients who pays their monthly Xero subscription through us. If you are considering accounting software please have a discussion with us first on the alternatives available.

Social Media: Follow our new Facebook page for important reminders, information and updates that might interest you, www.facebook.com/CandyGillespieCharteredAccountants

Interest Deductions Fact Sheet March 2021

Sun, 14 Mar 2021 22:00:00 GMT

This fact sheet from Inland Revenue Department summarises changes the Government has announced it intends to introduce to the tax treatment of interest on loans for residental property.

Click here to read the full proposal.

Bright-line Test Fact Sheet March 2021

Sun, 14 Mar 2021 22:00:00 GMT

This fact sheet from Inland Revenue Department summarises changes the Government intends to make to the taxation of Residential Property.

Click here to read the full proposal.

CG Update Dec 2020

Tue, 15 Dec 2020 22:00:00 GMT

Newsletter December 2020

Office Xmas Hours: Our office will close on Wednesday December 23rd and reopen on Monday January 11th.

Staff News: Keith Rea is retiring in March. He has worked at Candy Gillespie since he left school 52 years ago. Keith has certainly earned his retirement and we know he has a lot to look forward to with Jane, his children and grandchildren. We at Candy Gillespie deeply appreciate Keith's many years of loyal service and we know all our clients do too. We are currently working through the process of transitioning Keith's clients to other accountants within the firm. We'll be in touch soon with more details.

We'd also like to welcome Rachael Coveny who has joined our firm recently. Rachael is a Chartered Accountant who brings a wealth of experience to our team.

Asset Purchases : Business assets purchased for up to $5,000 between 17 March 2020 and 16 March 2021 can be claimed as a tax deductible expense in the year they're bought rather than depreciating the cost over the life of the asset. You only have a few months left to make use of this one-off opportunity to get a full tax deduction for small assets e.g. computer, chainsaw, heat pump for a rental property. The amount will reduce to $1,000 on 17 March 2021.

Land Purchase Price Allocation: If you are selling or buying property or a business it is very important that asset values are included in the agreement. If they aren't, there is the potential for an unfavourable tax outcome. The enclosed Trial Balance newsletter has more information relating to this. Make sure to talk to us before signing a Sale & Purchase agreement.

Trust Act 2019: A new Trust Act comes into force in January 2021. This brings increased administration and record keeping requirements for Trusts. The attached Trial Balance newsletter has an in-depth summary of these changes. If you have a Family Trust you should have heard from us or your solicitor by now about this. These are significant changes and do require your consideration. We have begun a review of all Trusts that we act as Professional Independent Trustees for. Due to the increased administration requirements we will begin charging an annual fee of $300 (plus GST) to Trusts for which we act as Professional Trustees.

Bright Line Property Sales: IRD are currently very active in this space. All property purchase and sales information is collected and sent to IRD and they use this information to make sure tax is paid on bright line profits. If you purchase a residential property that is not your main home and it is sold within 5 years, any gain is taxable. You can only have one main home, so your beach house is subject to these bright line rules. If in doubt, discuss with us.

IRD Update: The Labour Party is bringing in their new 39% personal tax rate for income over $180,000. This will come into force from 1 April 2021 and will apply for the 2021/22 tax year. This will not impact most clients who use companies or Trusts as it is currently intended as a tax on personal income only.

Scam IRD Emails: We see a lot of scam emails pretending to be from the IRD and stating you've got a tax bill or refund. They ask you to click on a link and have your credit card ready. These are scams. Delete them. There are some giveaway signs that the email is fake. Check the email address that the email is coming from. Often it shows a strange email address that is definitely not Inland Revenue. The fake emails often state an NZD amount. If in doubt, check with us. If you do have a tax bill or a refund, we'll know about it.

ACC Quad Bike Crush Protection Rebate: ACC are offering a $180 rebate on certain Crush Protection Devices for quad bikes. It won't cover much of the cost, but if you are interested, Google "ACC Cashback Crush" to find out how to get the cash-back offer.

Christmas Parties & Gifts: Entertainment costs for Xmas Functions are 50% deductible. This is because the IRD states that food & drink are 50% private (non-deductible). The same 50% deductibility rule applies to gifts of food & drink given to staff, customers and suppliers. However, gifts that don't include food & drink are 100% deductible. Fringe Benefit Tax (FBT) rules apply to staff gifts.

Staff Bonuses: Any cash bonuses are taxable and need to go through the PAYE system. Non-cash bonuses (e.g. gift cards, meat) are exempt from tax provided the total value per staff member is below $300 per quarter and total value for the employer per year is below $22,500.

Public Holidays: At this time of year, public holidays come in quick succession. If an employee works on a public holiday which would otherwise be a work day they are entitled to receive time & a half plus a day in lieu. To save costs, many of our farming clients give full-time staff a paid day off on public holidays rather than pay them time & a half.

If you do need your salaried staff to work on a public holiday, as long as they don't work more than two-thirds of a normal day, then a top up for time & a half is not required (e.g. if they just milk on Xmas Day and do no other farm work). That's because working two-thirds of a day at time & a half is equivalent to one full day's pay. So they would just receive their normal day's pay. They would still be entitled to receive the extra day in lieu.

Other staffing advice: Reminders for the Christmas period:

· Employees may request to cash up one week of annual leave per year but make sure they're taking some time off if you think they need it.

· If you're employing relief milkers, make sure they fill out an IR330. If they don't show you an exemption certificate and you don't withhold any tax from them, any payment you make to them is non-deductible for you.

· If we process your PAYE, please let us know about any staffing changes.

· We are members of Federated Farmers, so if you would like one of their contracts at member's prices, please let us know.

· Remember to keep all your time-sheets up to date. If your children work for you over the holidays, they need to keep a time sheet too.

· Contact Jo Storey or Latasha Tappin at our office if you have questions about wages.

Our Predictions: We only got about half of last year's predictions right. Not one of us predicted a Global Pandemic shutting down the whole world. We'll try to do better for 2021.

- Interest Rate watcher Alan Candy - Keep an eye out for good short term fixed rates

- Political Editor Keith Earl - Cindy will be as effective this term as she was in

the previous three years.

- Family Matters Craig Taylor - Succession planning to be a cause of headaches

- Weather forecaster Sonia Hart - A wet summer ahead

- Golfer John Gillespie - Getting close to shooting his age

- Living the Dream Keith Rea - Electric Bike will be clocking up record distances

- Covid watcher Heath Tapper - Another year without needing a passport.

- Dairy forecaster Michael Candy - $7 payout here we come!

We wish all our loyal clients a Merry Christmas and a Happy New Year.

Trial Balance Newsletter- December 2020

Sun, 06 Dec 2020 22:00:00 GMT

Click here to read this issue

In this issue:

Tax Calendar
Purchase Price Allocation
New Rules around feasibility expenditure
Supplying commercial accommodation and GST
Control Direct Debits
Mortgage deferral
Trusts Act 2019 and how it will affect your Trust
Be realistic with social media expectations
How to find a work/life balance
Business Cards with impact

May 2020 Year End Update

Sat, 30 May 2020 23:00:00 GMT

End of Financial Year: We e nclose your annual year end green questionnaire form. Even if you think there is nothing to fill out, please sign it on the front page and send it in.

Livestock Numbers: Here are a few tips to help you accurately record your livestock numbers.

· It is a lot easier if it's done on or near to balance date.

· Don't include heifers coming into the herd in the cow numbers, these are R2 heifers.

· Don't forget to include carry over cows and stock out grazing or leased out that you own.

· Calves born after last year's balance date and before this year's balance date are categorised as Rising 1. So autumn born calves are R1 calves at 31 May.

Budgets: Now is a great time to put together a budget for the 2020/21 season. The bankers generally shy away from doing your budget so please let us know if you would like us to help you with this, we have all your financial information and history.

Once the budget is sorted, we can prepare reports that compare actual vs. budget figures. This helps you track how you are performing compared to budget, or even just compared to last year. If you'd like to make use of this feature, please let us know and we can send you a report each GST period.

IRD Livestock Values: The IRD have recently released their Herd Scheme values for 2020.

Wages & Payroll: We have a dedicated team working specifically on employment and payment of staff. If you are wanting help with employment agreements, wages calculations for new or existing employees, final pay calculations then please contact us. We also have access to a specialist Human Resources company that we refer clients to for those tricky employment issues, if you have a problem in this area then please call and we can assist with a referral.

The Minimum Wage is now $18.90 per hour. You may need to check what hours staff are working particularly over calving to ensure they're at least being paid at or above the minimum hourly rate.

Payday filing is now compulsory. If you aren't already doing it or you're finding it a real bind, speak to us, we can do this for you.

There are a few "golden rules" for employing staff:

· You should not pay anyone without an IRD number. New employees must sign an IR330 tax code declaration.

· All employees must have an employment agreement , including casual employees. We can supply you with Federated Farmers Contracts at members' rates ($95 incl).

· Everyone is entitled to 8% holiday pay or Annual leave. This must be agreed to in the employment agreement.

· Each pay period must meet the minimum pay rate requirement with respect to hours worked. We recommend you pay staff fortnightly to better allow for this.

· If you provide any taxable allowance (e.g. free house) then its value must be included in your wage/PAYE tax calculation. Market value of rents should apply.

· Kiwisaver is compulsory for all NZ staff aged 18-65 when beginning a new job. An opt-out form needs to be completed if the staff member does not want to join Kiwisaver.

Interest Rates: We are seeing many farmers experiencing some incredibly low interest rates at the moment but see quite a range across our clients. We encourage you to talk to you banker about your interest rate if you haven't done so already. If you want some certainty then ask the banker for details of fixed interest rates, you might be surprised at how close the 1,2,3,4,5 year rates are. That being said those clients who have elected to float or work on rolling 1 to 3 month rates have had the advantage of falling rates for quite some time. With the current state of the economy it doesn't look likely that rates will bounce back any time soon. As a last note, banks now require that principal repayments are included in all budget calculations, interest only loans appear to be a thing of the past.

Rental losses law change: As of 1 April 2019, residential property owners are no longer able to offset their losses against their other income. This will be the first year that we cannot claim those rental losses in your tax returns, thos losses will be "ring-fenced' which means they will accumulate and carry forward and can only be used against future rental profits.

Inland Revenue & My IR: Inland Revenue have recently overhauled their website. If you are a user of My IR you will have noticed the changes. If the website shows that you have overdue taxes, please check with us.

Tax Payments: Remember that the IRD no longer accepts cheques for tax payments. When you pay your taxes electronically, please be sure to load the correct IRD number, period and tax type code for which that payment applies. Give us a call if you're unsure.

You can also make tax payments by eftpos (or cash) at Westpac branches.

When paying PAYE, there is a new tax code, it's EMP, please do not use DED any more. We will remind you of this when we send out your PAYE payment notices each month.

Asset Purchases : Assets purchased for under $5,000 between 17 March 2020 and 16 March 2021 can be claimed as a tax deductible expense in the year they're bought. This used to only apply to assets costing less than $500. The level will reduce to $1,000 on 17 March 2021. Assets costing more than these levels can still be depreciated at IRD set percentages.

Kiwisaver: Make sure you have contributed at least $1,043 to your Kiwisaver fund by 30 June as you will then receive the $521 Tax Credit. That's Free Money! It's a good time to check how your fund is performing too. While you're at it, please check you're on the correct PIR tax rate. Talk to us if you're unsure.

Emailing of Client Documents: We are increasing the use of email as a way of distributing important information to our clients, it's now more reliable than the traditional posty delivered mail.. We have already begun emailing reminder letters and payment notifications for GST & PAYE. We will shortly begin emailing Income Tax notifications as well as our fee invoices to you. If you would prefer to receive these documents by post, please let us know.

MPI 2020 Drought Recovery Advice Fund: MPI have recently announced the 2020 Drought Recovery Advice Fund is to help farmers recover from the 2020 drought, and plan for future droughts. It will pay for professional advice to a maximum of $5,000 (excluding GST).

To be eligible for this fund:

1) the farm must be in a 2020 drought-affected region or district

2) the farming business must have been negatively affected by the 2020 drought

3) at least 50% of the farmer's income, in a normal year, must be earned from the farming business

If you think that you might benefit from this, please give us a call or check out the MPI website. https://www.mpi.govt.nz/protection-and-response/responding/adverse-events/support-during-a-drought/2020-drought-recovery-advice-fund/

Candy Gillespie is currently applying to be a preapproved supplier and can help you with:

ü strategic planning, including farm business and whole farm plans

ü business continuity

ü modelling farm systems change scenarios

ü alternate land-use options

ü financial planning and decision support

ü farm accounts analysis

Farmer Outlook

At this stage, farmers have been reasonably insulated from Covid 19. The real impact of this is yet to be seen and no one is going to be immune. A few points to consider:

- Fonterra have predicted their deferred payments for July to October 2020 at $1.41, this is well above their prediction of $1 for the 2020/21 season. This will help hold up income through the coming milking season even though next years projected payout is significantly down.

- Depending on the weather, production and cost, farmers 2020/21 taxable incomes will be consistent with 2019/20. However 2021/22 year may show a significant drop,

- Covid 19 is going to have an impact on the labour market. Particularly those employers relying on overseas labour, conversely there may be more New Zealanders looking for farming jobs.

- Commodity prices – it will be interesting to see what happens to commodity prices as a result of changes to unemployment figures and some of our population's disposable incomes.

- It's a time to strengthen your balance sheet – it'll make it easier to weather a down turn and it'll put you in a better position to make that next move when the times right.

- Don't revert back to a she'll be right attitude with regards to expenditure, don't lose the lesson or some of the efficiencies you have now gained.

- Talk to your banker and us early if you haven't already done so.

- Work on that relationship with your banker, you need them and they need you, be proactive around your requirements, start with a budget and don't be afraid to discuss interest rates, remember that nobody likes surprises so discuss issues early.

- Remain optimistic and maintain a long term view.

May 2020 Rural Edition

Sat, 30 May 2020 23:00:00 GMT

End of Financial Year: We enclose your annual year end green questionnaire form. Even if you think there is nothing to fill out, please sign it on the front page and send it in.

Livestock Numbers: Here are a few tips to help you accurately record your livestock numbers.

· It is a lot easier if it's done on or near to balance date. (i.e. 31 May 2020!)

· Don't include heifers coming into the herd in the cow numbers, these are R2 heifers.

· Don't forget to include carry over cows and stock out grazing or leased out that you own.

· Calves born after last year's balance date and before this year's balance date are categorised as Rising 1. So autumn born calves are R1 calves at 31 May.

Wages & Payroll: We have a dedicated team working specifically on employment and payment of staff. If you are wanting help with employment agreements, wages calculations for new or existing employees, or final pay calculations then please contact us. We also have access to a specialist Human Resources company that we refer clients to for those tricky employment issues, if you have a problem in this area then please call and we can assist with a referral.

The Minimum Wage is now $18.90 per hour . You may need to check what hours your staff are working to ensure they're at least being paid at or above the minimum hourly rate, particularly over the calving period.

Payday filing is now compulsory. If you aren't already doing it or you're finding it a real bind, speak to us, we can do this for you.

There are a few "golden rules" for employing staff:

· You should not pay anyone without an IRD number. New employees must sign an IR330 tax code declaration.

· All employees must have an employment agreement , including casual employees. We can supply you with Federated Farmers Contracts at members' rates ($95 incl).

· Everyone is entitled to 8% holiday pay or Annual leave. This must be agreed to in the employment agreement.

· Each pay period must meet the minimum pay rate requirement with respect to hours worked. We recommend you pay staff fortnightly to better allow for this.

· If you provide any taxable allowance (e.g. free house) then its value must be included in your wage/PAYE tax calculation. Market value of rents should apply.

· Kiwisaver is compulsory for all NZ staff aged 18-65 when beginning a new job. An opt-out form needs to be completed if the staff member does not want to join Kiwisaver.

Rental losses law change: As of 1 April 2019, residential property owners are no longer able to offset their losses against their other income. This will be the first year that we cannot claim those rental losses in your tax returns, these losses will be "ring-fenced' which means they will accumulate and carry forward and can only be used against future rental profits.

Inland Revenue & My IR: Inland Revenue have recently overhauled their website. If you are a user of My IR you will have noticed the changes. If your receive any correspondence from the IRD telling you that you have overdue tax owing or tax refunds due, please check with us first before paying it or giving them your bank account details.

You can also make tax payments by eftpos (or cash) at Westpac branches.

When paying PAYE, there is a new tax code, its EMP, please do not use DED anymore. We will remind you of this when we send out your PAYE payment notices each month.

Asset Purchases : Assets purchased for under $5,000 between the 17 March 2020 and 16 March 2021 can be claimed as a tax deductible expense in the year they're bought. This used to only apply to assets costing less than $500. The level will reduce to $1,000 on 17 March 2021. Assets costing more than these levels can still be depreciated at IRD set percentages.

Emailing of Client Documents: We are increasing the use of email as a way of distributing important information to our clients, it's now more reliable than the traditional posty delivered mail. We have already begun emailing reminder letters and payment notifications for GST & PAYE. We will shortly begin emailing Income Tax notifications as well as our fee invoices to you. If you would prefer to receive these documents by post, please let us know.

Farmer Outlook

At this stage, farmers have been reasonably insulated from Covid 19. The real impact of this is yet to be seen and no one is going to be immune. A few points to consider:

- Depending on the weather, production and costs, farmers 2020/21 taxable incomes will be consistent with 2019/20. However the 2021/22 year may show a significant drop based on the current payout estimates.

- Covid 19 is going to have an impact on the labour market. Particularly those employers relying on overseas labour, conversely there may be more New Zealanders looking for farming jobs.

- Commodity prices – it will be interesting to see what happens to commodity prices as a result of changes to unemployment figures and some of our population's disposable incomes.

- It's a time to strengthen your balance sheet – it'll make it easier to weather a down turn and it'll put you in a better position to make that next move when the times right.

- Don't revert back to a she'll be right attitude with regards to expenditure, don't lose the lesson or some of the efficiencies you have now gained.

- Consider preparing a budget. It is important that you have a robust financial plan rather than relying purely on luck and/or good fortune, it helps you clarify the decisions you need to make, it will provide you with some clarity and direction on where you are going, it may well reduce stress levels.

- Talk to your banker and us early if you haven't already done so.

- Remain optimistic and maintain a long term view.

May 2020 Covid Update

Sat, 30 May 2020 23:00:00 GMT

Candy Gillespie staff have been working from home during Covid Lockdown. We will re-open under government recommendations when Covid Alert Level 2 begins.

Corona Virus Government Package : This is a quick rundown of the support the government is offering to help businesses impacted by Covid 19.

Wage Subsidy Scheme: Thousands of businesses in New Zealand have applied for the Covid Wage Subsidy and billions of dollars have been paid out. To be eligible, one of the main criteria was that Covid 19 had caused business turnover to drop by 30% or more compared to the same time last year. Some businesses who have applied are now discovering that their turnover did not drop as much as expected and are having to pay the subsidy back. Some employers did not continue to pay their staff for the full 12 weeks and are also liable to pay the subsidy back. If you are one of these businesses, talk to us, but be prepared to pay back any subsidy you weren't entitled to.

Small Business Cashflow Scheme (SBCS): This is a loan offered to small businesses.

• To be eligible for the SCBS loan a business or organisation must have 50 or fewer full-time employees and be eligible for the Wage Subsidy Scheme. The business must have a sound plan to be viable and ongoing and hold information on file to verify this.

• In most cases, businesses will be entitled to a one-off loan amount of $10,000 plus $1,800 per full-time-equivalent employee.

• Applications will be open from 12 May 2020 to 12 June 2020. Most businesses will receive the funds within five working days.

• Inland Revenue will administer the payments and repayments of this loan.

• The loan has a five-year term and must be repaid in full by 31 July 2025.

• The annual interest rate will be 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within one year (i.e. it's only interest free for the first year if it is repaid in full within 12 months). Repayments are not compulsory in the first 24 months.

This will be a good option for many businesses. It could be better than going further into overdraft or applying to the bank for more funding.

Applications need to be made using the MyIR website. You will need to make a declaration about your business and how you'll be using the funds. You only have until 12 June.

Loss Carry Back: This scheme allows you to move any losses made in the 2019/20 year or the 2020/21 year to the previous year. Prior to this rule change, these losses could only be carried forward to future years. If in either the 2019/20 year or the 2020/21 year you are likely to make a tax loss, these rules may create some benefit for you. You may be able to have tax refunded for the prior year. If this sounds like something you want to look into further, please contact us.

Deferral of tax: If you have tax due and you aren't able to pay it because of the financial impact of Covid 19 please contact us to discuss your options. IRD is allowing deferral of tax payments with no interest or penalties if you are in this circumstance. Financial arrangements and Tax payments need to be made 'as soon as practicable'.

Asset Purchases : Assets purchased for under $5,000 between 17 March 2020 and 16 March 2021 can be claimed as an expense immediately rather than depreciating the cost over the life of the asset. After next year, this limit will reduce to $1000.

ACC: ACC has delayed sending out invoices for Cover Plus Extra (CPX) until July. If you use CPX, you will remain covered at your agreed amount until this time.

Review your costs: Now is also a good time to review your costs and ensure your costs are all necessary. Are there any that can be cut back? Talk to your creditors and your debtors to arrange a payment plan for any outstanding bills. We can help with cashflow forecasts.

Tax Payments: Remember that the IRD no longer accepts cheques for tax payments. When you pay your taxes electronically, please be sure to load the correct IRD number , period and tax type code for which that payment applies. Give us a call if you're unsure.

You can also make tax payments by eftpos (or cash) at Westpac branches.

CG Update March 2020

Mon, 30 Mar 2020 22:00:00 GMT

Office Closed : Due to Covid-19 Alert Level 4 being enforced, our office closes at 5pm Wednesday 25 March until further notice. We will continue to work from home and will be available by telephone and email. As much as possible, it will be business as usual. We will continue to support you and your business, including GST processing, PAYE and Payroll processing, Annual Accounting, tax planning and cashflow forecasts. We will be in touch with further information on how we will deal with this new way of doing things.

People News: We are losing two valuable staff members. Briar Earl first joined Candy Gillespie in 2001. After a move to Hamilton, Briar returned to Candy Gillespie in 2014.

John Rea began working for Kim Hancock in 2007 and shifted with Kim to Candy Gillespie in 2013. John's retirement will no doubt be spent enjoying his many extra-curricular pursuits.

Corona Virus Government Package : Covid-19 is undoubtedly the biggest talking point of recent times. This virus has had a significant impact on people's lives, the global economy, and probably your business. If you need help creating a cashflow budget to make sure you can get through a downturn, please contact us.

· Income Subsidies: Businesses that can prove the Corona Virus has caused a 30% monthly decline in revenue are entitled to weekly wage subsidies of $585 per full time worker for 12 weeks. Self-employed workers are also entitled. We have already had clients apply for and receive this subsidy. If you think you are eligible, apply for these subsidies Google: WINZ Covid-19. We can help.

· Tax Changes: The most relevant parts of the government's tax plan relate to increasing the provisional tax threshold, the reinstatement of depreciation on commercial buildings, writing off interest on late tax payments for businesses affected by the virus and increasing the small asset depreciation threshold.

**Hint : If you're planning to buy a business asset under $5,000 this year, wait until after 1 April (or 1 June for most farmers). For the 2021 financial year only , assets under $5,000 can be claimed as an expense immediately rather than depreciating the cost over the life of the asset. So if you were planning to buy a new laptop or a farm bike, wait until the new financial year. After next year, this limit will reduce to $1000.

· Interest Rates: The Reserve bank recently lowered the OCR to 0.25% and pledged to keep it there for 12 months. Most banks followed suit with rate cuts.

Drought Declared: The government has officially declared a drought in a number of regions in New Zealand. As a result of this, there are minor tax relief provisions available for affected farmers. We don't think these provisions will be widely used by our farmer clients this year, but we will be in contact with you if this is something we think you can take advantage of.

End of Financial Year: 31 March sees the end of the financial year for most businesses. Those businesses will find a green questionnaire included with this newsletter. To accurately calculate your financial performance for the year, a snapshot of your position at balance date is required. When preparing your accounts we spend a considerable amount of time determining what you own and what you owe at balance date. This questionnaire is also your instruction to us to compile your accounts and tax returns. It is integral to our system to have it on file. Even if you think there is nothing to fill in, please sign and send it in.

As the financial year end approaches, here are some matters to think about:

Trading stock : either dispose of obsolescent stock or revalue it to the current market value. If you do devalue your stock, you need to be able to justify that value if the IRD challenges it.

Work in Progress: Review work in progress. Invoice it or write it off by balance date, otherwise you might be paying tax on income you won't receive.

Bad Debt: Bad debt deductions can only be claimed if the debt is actually written off before balance date. Make a decision on your aged debtors. Either call in the debt collectors or accept that it's not going to be paid and write it off.

Wages & Payroll: Minimum wage increases to $18.90 per hour from 1 April. Jo Storey is our resident payroll expert and is here to help. However, we request that if you are hiring new staff, please provide us with all their payroll information sooner rather than later to give us time to get it set up before your new staff begin. Please don't wait until you've started paying them before asking for a wage calculation.

Job layoffs caused by the Corona Virus, particularly in the tourism sector, may result in a number of people looking for work. This could be an opportunity for employers to find quality staff in a previously tight labour market.

Tax Payment Notices: As of 1 March, the IRD no longer accepts cheques for tax payments. You will notice a new format for the Tax Payment Notice that you receive. There is no longer a tear-off pay in slip. Instead you will find details to help you make the payment electronically.

When you pay your taxes electronically, please be sure to load the correct IRD number , period and tax type code for which that payment applies. Give us a call if you're unsure.

You can also make tax payments by eftpos (or cash) at Westpac branches.

ACC: Cover Plus Extra (CPX) is a good option for self-employed people. It gives you a level of ACC cover to meet your needs. If you're not already using CPX, call us to discuss your options. Those who already use CPX would have received notification regarding rolling over your cover for next year. If it's correct this rollover happens automatically. If not, complete the changes and send it back to them. ACC no longer accepts cheques. Internet banking or Direct Debits are the best way to pay. You can set up an interest free instalment plan over 6 months.

CG Update Feb 2020

Thu, 27 Feb 2020 22:00:00 GMT

IRD Cheques

From 1 March 2020 the IRD will stop accepting payment by cheque, including cheques dated after 1 March. From this date, you will need to use an alternative payment method.

Internet Banking

Internet banking is now a safe & efficient way to make tax payments. To do this, you will need to set up an internet banking account with your bank prior to 1 March. You will choose a user name and a password. Your bank can help you set this up and use the tax payment options. Bank websites usually have a "pay tax" or "IRD Payment" button which makes it easier.

When you pay online, you'll get notification of the date and time the IRD received your payment, so you can make sure your taxes are paid on time.

We can help you make an online payment once your internet banking account is set up and you have your login details.

Our suggestion is that you use Internet Banking, but the IRD also offers these other Payment Options:

My IR

A myIR account lets you manage all your Inland Revenue matters securely online. You can use it to pay IRD with a credit card or debit card. You can also set up a direct debit to allow IRD to deduct tax payments from your nominated bank account. You can make the payment immediately or set it up for a future date. The IRD will let you know in advance how much will be debited, and on what date.

You need to register for a myIR account on the IRD website. We can help you with this.

Credit and debit card payments

If you don't have a myIR account, you can also make a payment from your debit or credit card on the IRD website. The bank charges a convenience fee of 1.42% for any credit or debit card payment made to the IRD.

Cash or Eftpos at Westpac

You can make cash or Eftpos payments at a Westpac branch. You'll need all the details with you when you go into the branch. From 1 July 2020 you will need to have a barcode to ensure the payment goes to the right place. Barcodes are usually printed on Inland Revenue returns, statements or letters. We'll be able to provide this barcode to you if you want to use this option.

Trial Balance - Dec 2019

Sun, 08 Dec 2019 22:00:00 GMT

Read the Dec 2019 Trial Balance here

In this issue:

CG Update - Dec 2019

Sun, 08 Dec 2019 22:00:00 GMT

Office Xmas Hours: Our office will close on Friday December 20th and reopen on Monday January 6th.

Staff News: We have had new staff join the firm in recent months: Jewell Johnston, Lindi van Deventer and Neilar Shuttleworth all began midway through the year.

As we aim to process your work as efficiently and quickly as possible, it may not be the same person doing your GST from one month to the next. Please be aware that you may get emails or phone calls from different people in our office from time to time.

IRD 2019

- Payday filing began in April 2019. For most of our clients it doesn't seem to be as painful as it appeared it would, especially if we are handling it all for you.

- Capital Gains tax discussion came and went.

- Residential Rental Property Losses are no longer deductible against other income. Instead, losses will be ring-fenced and only able to be offset against future rental income.

- Pensioners can still join Kiwisaver which might offer a better return than a Term Deposit

IRD 2020: No more Cheques. From March 2020, the IRD will no longer accept cheques unless under exceptional circumstances (e.g. if you don't own a phone or don't have the internet). IRD's cheque counting machine is out of warranty and they don't want to buy another one. Many people are already using Internet banking to pay their taxes, but for those clients who currently pay taxes by cheque, we'll have a plan for you before March.

Inland Revenue & My IR: If you make IRD payments online, please be sure to pay them into the correct Tax Type, Tax Period and use the correct IRD number. If you have any doubts, check with us before making payment. If you receive an IRD refund that you weren't expecting, please check it with us.

Provisional Tax Payments : If you miss a Provisional Tax payment (even by one day) please get in touch with us so we can arrange an alternative payment through Tax Pooling. If it's late, you will fall out of the "Safe-Harbour" tax regime. This means that the IRD will charge ongoing Interest (UOMI) even after you have paid. Using Tax Pooling to catch up on late payments can significantly reduce this interest.

Bank RWT & PIR Rates: You may have received letters from your bank and the IRD recently about making sure they have your IRD number and correct RWT/PIR rate. If your bank doesn't have your IRD number, any interest you earn will be taxed at 45%.

PIR rates for income from PIE investments (such as Kiwisaver) need to be correct otherwise you might end up paying more tax than you need to, and it can't be refunded.

Give us a call if you are unsure what your RWT or PIR rate should be.

Christmas Parties & Gifts: Entertainment costs for Xmas Functions are 50% deductible. This is because the IRD states that food & drink are 50% private (non-deductible).

The same 50% deductibility rule applies to gifts of food & drink given to staff, customers and suppliers. However, gifts that don't include food & drink are 100% deductible. Fringe Benefit Tax (FBT) rules apply to staff gifts.

Staff Bonuses: Christmas bonuses by way of cash/wages are taxable to employees as part of the PAYE system. For small businesses, Xmas gifts (non-cash) are exempt from tax provided the total value per staff member is below $300 per quarter.

For example, if you give staff a $300 cash bonus, they will pay PAYE tax on it. But if you give staff $300 worth of gift vouchers there would be no tax on it for them, no FBT, and it would still be 100% tax deductible for you. Warning: If you give staff a $300 voucher and a leg of ham, then you're over the $300 threshold which means all of the gift is taxable, so be careful.

This $300 FBT exemption applies to all legitimate employees of your business including yourself if you are a shareholder employee. It can't be cash, but Gift Vouchers are OK.

If this sounds like something you'd like to do, give us a call to discuss the process.

Public Holidays: At this time of year, public holidays come in quick succession. If an employee works on a public holiday which would otherwise be a work day (e.g. this year Christmas is on a Wednesday and the employee usually works on a Wednesday), they are entitled to receive time & a half plus a day in lieu. To save costs, many of our farming clients give full-time staff a paid day off on public holidays rather than pay them time & a half.

But if you need your salaried staff to work on a public holiday, as long as they don't work more than two-thirds of a normal day, then a top up for time & a half is not required (e.g. if they just milked on Xmas Day and did no other farm work). That's because working two-thirds of a day at time & a half is equivalent to one full day's pay. So they would just receive their normal day's pay. They would still be entitled to receive the extra day in lieu.

Other staffing advice: Reminders for the Christmas period:

· Employees may request to cash up one week of annual leave per year but make sure they're taking some time off if you think they need it.

· If you're employing relief milkers, make sure they fill out an IR330. If they don't show you an exemption certificate and you don't withhold any tax from them, it is non-deductible for you. If we process your PAYE , please let us know about any staffing changes.

· Contracts – We are members of Federated Farmers, so if you would like one of their contracts at member's prices, please let us know.

· Remember to keep all your time-sheets up to date.

Contact Jo Storey at our office if you have any questions about staff wages.

Our Predictions for 2020

- Rate watcher Alan Candy - Interest rates will remain flat.

- Foreign Affairs Dept Keith Earl - Trump re-elected in a landslide.

- Weather watcher Craig Taylor - Ice creams drip if not licked. Global warming?

- Political watcher Sonia Hart - Winston will jump ship (or will he be pushed?)

- Fisherman John Gillespie - He'll get his quota of Snapper.

- Rugby Head Keith Rea - Ian Foster for All Black coach

- Cricket fan Briar Earl - NZ to win Boxing Day Test and the series.

- Fashion watcher Heath Tapper - Beards will go out of fashion.

- Dad bod Michael Candy - Fatherhood 2.0 is just around the corner

We wi sh all our loyal clients a Merry Christmas and a Happy New Year

Trial Balance - June 2019

Sat, 29 Jun 2019 23:00:00 GMT

Check out the June Trial Balance here

In this issue

Trial Balance - March 2019

Sun, 31 Mar 2019 22:00:00 GMT

here

In this issue

CG Update - March 2019

Sat, 30 Mar 2019 22:00:00 GMT

People News

At the end of March we are losing two long standing staff members. Raewyn Goscomb joined Candy Tappin as a school leaver, left for OE and child rearing years before becoming the right hand and go to person for clients of firstly Jim Kyle and then Craig Taylor. Raewyn and Leon are moving to the sunny climate of Blenheim.

Anne Gillespie is also retiring after a long, desperate, and yet brave effort of keeping her husband on the straight and narrow. John Gillespie is also significantly reducing his time at the office.

Event of the year to date has been the celebration of Keith Rea's milestone of 50 years with the firm after starting as a school leaver in 1969.

Recent additions to our staff in 2019 have been Stacey Shearman and a returning Lynette Yetman.

New Directors

The office also welcomes two new directors and owners of Candy Gillespie Ltd. Staff members Heath Tapper and Michael Candy will take up their new roles in April.

End of Financial Year

Every year we plead with and beg clients to complete and return the green questionnaire form, one year we even offered a prize, and that didn't work either. This form is your instruction to us to compile your accounts and tax returns. It is integral to our system to have that form on file. Please do not ignore it even if you think there is nothing to fill out on it, please sign and send it in.

Donations

A 33% rebate is available for cash contributions to registered charities in the education, religious and philanthropic fields. Rebate applications are made to IRD and we can do this for you if you send in all your donation receipts with your green questionnaire.

Wages & Payroll

A minimum wage increase to $17.70 per hour comes into effect on April 1 ^st. For 16 to 19 year olds on training or starting wages the rate is $14.16.

The Domestic Violence Victims Protection Act comes into being on April 1 ^st entitling victims to two weeks paid leave every twelve months.

Payday filing is compulsory from 1 ^st April 2019. For employers, enclosed is a summary on what you need to know.

Post Dated Cheques

The IRD will no longer hold post-dated cheques until the nominated date and our postal system has become unreliable in terms of delivery time. If you are paying tax commitments by cheque, please allow plenty of time for delivery and accept that the cheque will be presented when received.

IRD are pushing for all payments to be made electronically. If you choose to pay your taxes electronically, please make sure that you load the correct IRD number , tax type code and the period for which that payment applies.

Trial Balance - December 2018

Fri, 30 Nov 2018 22:00:00 GMT

Check out the December 2018 Trial Balance here In this issue Are you managing all aspects of risk in your business Write attention-grabbing headlines Tool helps track Kiwisaver Proposed new rules for GST on low value imported goods announced Claiming business expenses Get an NZBN Food businesses - do you need to register ACC levies Tax calendar Business Succession Planning Planning: Tips and tools to help you start a business Another home business calculation Are you owed an ACC levy refund Five key features of Kiwisaver changes Capital gains tax Updating your will Are you making good use of your business cards Are you a gig worker? Quick tips to make your life easier

Trial Balance - September 2018

Sat, 29 Sep 2018 23:00:00 GMT

Check out the September 2018 Trial Balance newsletter here In this issue: Location the key to success Cracking down on cartels Kiwisaver - 5 key features of changes Entity for owning rental property Deemed dividends New rules for PAYE Payments for babies born or due from 1 July Home business requires discipline Tax calendar Quick cash flow tip Never too old? Get rid of email prompts - and keep working A going concern 10 reasons you need help to grow your business Rental losses law change coming Mischief of family trusts Are they an employee, or an independent contractor? Get ready for payday filing Complying with the AML/CFT legislation

CG Update - May 2018

Wed, 30 May 2018 23:00:00 GMT

CG Update - March 2018

Fri, 30 Mar 2018 22:00:00 GMT

CG Update - December 2017

Sat, 30 Dec 2017 22:00:00 GMT

CG Update - June 2017

Thu, 29 Jun 2017 23:00:00 GMT

CG Update - May 2017

Tue, 30 May 2017 23:00:00 GMT

CG Update - March 2017

Sun, 26 Mar 2017 22:00:00 GMT

People News

At March 31 ^st we say farewell and thanks to Kim Hancock. We look forward to continuing to provide accounting services for his clients who are now in the capable hands of our Directors and senior associates.

Congratulations to clients Phillip Van Heuven, Adrianus Van T Klooster, and Carlos & Bernice Delos Santos who have all won Farmer awards in recent competitions.

End of Financial Year

Over the next few months most clients will reach their annual financial balance date. This is an important day in your business life and you should take a moment to recognise its significance in determining your financial results for the year.

If we are to accurately calculate your financial performance for the year, then a snapshot of your position on balance date is a vital component of the data required. When preparing your accounts we spend a considerable amount of time and effort in determining what you own and what you owe on balance date.

End of year livestock and trading stock are vital pieces of information.

Bad Debts – Bad debts are deductible only in the year that they are written off. Bad debts must be written off before balance date.

All of the above is to encourage you to fill in the green questionnaire form when you have assembled all the information, sign it and send it in to the office.

Donations

We Kiwis are extremely generous when it comes to giving help to others in terms of time, energy, expertise and with cold hard cash. The Government recognises that contribution by providing a 33% rebate on cash contributions to registered charities in the education, religious and philanthropic fields.

Send donation receipts in with annual records for us to process your rebate claim.

Wages & Payroll

Be aware of an increase of 50 cents to $15.75 per hour in the adult minimum wage rate applying from April 1 ^st . Other "starting out" and "training rates" have also changed.

Employers need to ensure that the rate of pay for salaried employees does not fall below the minimum rate on a weekly basis for the hours worked

If you are paying Contractors or receiving income as one, then new rules exist to allow taxpayers to nominate their own rate of withholding tax (minimum 10%). Check with us if you need further information.

Interest Rates

Competition in the banking industry remains strong and therefore interest rates have not moved to any great extent. Markets do react to world events but, in the absence of such an occurrence, we see the current situation continuing.

The OCR remains steady at 1.75% with indications from the Reserve Bank that no change is foreseen in the short term.

Budget for the next farming season.

As the current season winds down, if you have not already done so, it is time to think about a budget and cash flow forecast for the coming year. A few points to remember:

- Incomes were down in 2016, many have experienced a tax holiday over this last year. It is probable that 2017 taxable incomes will be up on the previous year. You need to budget for terminal tax April 2018.

- As your dairy payout prediction is likely to exceed the Fonterra loan repayment trigger point then factor in repayments of the 2016 dairy support loan.

We can help you with producing the budget but you need to give serious thought to the big budget items; employment, feed, fertiliser, any one off item of a repair or capital nature and, most importantly, your personal living requirements.

Mixed Use Assets

If you have a mixed use business asset then you need to provide us with usage details. Using the beach house as a classic example, in order to calculate the correct percentage of claimable expenses, we need to know:

1. The number of days rented on a commercial basis.

2. The number of days used by family members plus days rented to others at less than 80% of market.

Could you please note those details on your questionnaire. If your rental income is less than $4k per annum then you may be able to opt out of returning any income in your returns. Of course that means there is no loss to claim either.

Review your will, memorandum of wishes and other important documents.

A long standing client died recently and despite periodic reminders from the accountant the current will was dated in the 1980's. One of the nominated executors was also deceased making the issue of probate somewhat delayed.

In another recent instance, a review of the constitution of an incorporated society revealed that in the event of the society winding up, the charity or organisation that is the nominated beneficiary of any residual assets or surplus funds technically no longer exists.

Another timely but gentle reminder that circumstances and thinking change over time and the need to keep your important legal documents current.

Kiwisaver

Still a great idea for all of us not of the retirement age. If your Kiwisaver account is lying dormant in terms of annual contributions then you should make a voluntary payment of $1,040 before June 30 ^th to entitle the account to receive the $520 government tax credit.

Trial Balance - March 2017

Tue, 28 Feb 2017 22:00:00 GMT

The latest Trial Balance newsletter has been released. Check it out here In this issue Maximising your property investment Directors' key responsibilities Minimum wage increase Tax calendar Motor vehicle expenditure of close companies Retrospective adjustment to salaries Beware the debt collector Shareholders' and partners' agreements Deducting tax from payments to a contractor Cross boarder finance Overseas student loan interest exemption Foreign income - reminder Big changes to PAYE on the way Save data even with cloud accounting The worth of a business Valuing trading stock

CG Update - December 2016

Wed, 30 Nov 2016 22:00:00 GMT

Office News

Our office will close on Friday December 23rd and reopen on Monday January 9th. For urgent enquiries, we will be checking emails and the office answer phone on a regular basis so please leave a message.

Two new babies to enlighten the lives of Karyn Walters and Anna Davey were the only interruptions to the committed workload of the great team here at the office.

Kim Hancock has given notice that he will resign from his position with the firm at the end of March next year. We wish Kim well and assure his clients that our team of qualified and capable accountants are ready and keen to continue the excellent service that he provides.

Office Essentials

- Wages

Reminders for the Christmas period

· Employees may request to cash up one week of annual leave per year after the entitlement has arisen. The net payment will not be the same as a normal week, the PAYE will need to be calculated at lump sum rates and house rental (if any) is not deducted.

· Be aware that even if your staff are rostered off on Christmas Day or New Years Day, these public holidays transfer to the Tuesday. Normal statutory holiday entitlements will apply if they work on the Tuesday instead of the Sunday.

· If you're employing relief milkers over the Christmas period make sure they fill out an IR330 and if we process your PAYE , please let us know about any staffing changes.

· Contracts – ignore having these for employees at your peril, this can be an expensive lesson if you don't have one or the right bases covered. We are members of the Federated Farmers so if you are not and would like one of their contracts, please let us know.

· Timesheets – we are now getting used to this as being good practice.

- ACC

While you are checking your ACC bill, make sure that you are on the correct industry classification. If you are on the wrong classification, you could be paying too much. If ACC don't know what industry you are in, they default to industries with high levy rates. Making sure this is correct could save you money. If you are unsure, we can review this for you.

- IRD due dates and payments

Trying to get IRD cheque payments to the right place by the right date is a continual stress point. Internet banking is the safest and best option and we encourage clients to use this method of meeting IRD obligations.

- IRD Numbers

If you need to give your IRD number out to anyone because you are about to receive an income stream (i.e. wages, super, interest) then please make sure you give out the correct number for the type of income. Personal income such as wages or national super require your personal IRD number, not that of your partnership or trust or company. Trying to get the data changed over to the correct number at IRD is a nightmare.

If you are unsure then give us a call, the information is literally at our fingertips.

Dairy Farmer Clients

In 1992 Queen Elizabeth described that particularly bad year as Annus Horribilis which is an apt description for the 2016 dairy season. Students of Latin will know that Annus Mirabilis means wonderful year and while it is unlikely that the farmers will yet see the current season payout in those terms, things are moving in the right direction.

Low income years give us the opportunity for tax planning options such as livestock valuation and fertiliser cost deferral to take advantage of the differential tax rates.

Economic Review – Where did the year go?

The mid year of the electoral cycle can often be described as "steady as you go" with no major economic changes to impact on business decisions. There were legislative changes put in place to reduce the hype in the property market and to a certain extent they have achieved the desired effect.

The often predicted interest rate rise did not happen and the cut to OCR softened rates further. The currency exchange rate with our major trading partners also did not move as far or as quickly as some had forecast.

In the last 12 months we have lost two great NZ captains McCaw and Key. In the case of McCaw there was an end of year blip and a settling in period, but as is common with us Kiwis, the next person stepped up to the plate and we carry on. I trust the same will happen in the political field.

However, on the global scene there have been enough happenings to maintain a degree of uncertainty and volatility in economic markets. The existing world order of politics and economics is under scrutiny and possible threat from a number of sources :

- The war(s) in the Middle East leading to a substantial refugee outflow has brought a number of pressures to European countries.

- The Brexit vote was a huge misread of the British sentiment in rural England by Cameron and the establishment.

- The USA has just played its biggest trump card. While the big cities overwhelmingly voted for the status quo the "make America great again" obviously struck a chord with middle America. There are a significant number of overseas countries who are watching as to how the new administration attempts to convert that promise into reality with some trepidation and consternation.

Our Predictions for 2017

Our last year's predictions were appallingly bad, only Alan Candy's call on falling interest rates and Craig Taylors obvious flag choice bore any resemblance to reality. We can only improve.

- Rate watcher Alan Candy - Interest rates will not rise until after the election.

- Tennis watcher Keith Earl - Roger has one more grand slam left in him.

- Weather watcher Craig Taylor - The weatherman still has no idea.

- Political watcher Sonia Hart - Crusher Collins will have a big year

- Cricket lover John Gillespie - Kane will win the toss and bat.

- Rugby Head Keith Rea - AB,s 2 Lions 1

- Cocky upstart Ben Blackett - I will be the firms best golfer by March

- Staff watcher Brenda Hull - Ben Blackett will be fired late February

- Fashion watcher Heath Tapper - Beards will be out (same as last year) eventually.

- Newly wed Michael Candy - Fatherhood is just around the corner

We wish all our loyal clients a Merry Christmas and a Happy New Year.

Trial Balance - September 2016

Thu, 01 Sep 2016 23:00:00 GMT

here

In this issue

CG Update - May 2016

Sun, 17 Jul 2016 23:00:00 GMT

End of Financial Year
The annual questionnaire for your 31 May 2016 balance date has been sent out. Here are a few tips to help you accurately record your livestock numbers.

All of the above is to encourage you to fill in the green questionnaire form. When you have assembled all the information, sign it and send it in to the office.

IRD Livestock Values
The IRD had not released their Herd Scheme values for the 2016 year at date of writing this newsletter, but we expect the values to come down.

Provisional tax – last instalment
For provisional tax payers, you are about to receive your last instalment notice for your 2016 provisional tax commitment. This instalment is due on the 28 ^th June 2016. Using IRD's standard calculation method, this tax payment is based upon your 2015 income plus an uplift of 5%.

An opportunity may exist to re-estimate your 2016 provisional tax downwards to reflect the lower income.

Wages & Payroll
Hardly a day goes by without a client ringing with an employment or wage calculation issue and we are happy to help. We have seen big improvements in compliance and record keeping over the last few years with respect to time records.

We would trust that by now paying staff "under the table" is a thing of the past. There are too many risks, too many prying eyes and the costs and penalties of non compliance are not worth it.

There are a few "golden rules" in calculating wage payments for those who work in your business.

Payroll is a sensitive issue and good communication with employees on wage issues is essential. There is a bigger picture to consider. Many staff have non job related issues that are affected by their gross wage such as child support and family assistance.

Latasha Tappin and Alicia Collins are currently looking after our PAYE and payroll calculations. Give them a call on any payroll issues.

Budgets & Cash Forecast
We can assist you in preparing your 2016/17 budget and cash flow. NOW is a good time to get onto that task. We are also able to import those figures into your accounting file and produce actual vs budget comparatives as we go through the season processing your GST returns.

For comparison with other farmers Dairy Base provides good statistical data. We can assist you with the input information required for you to participate.

Disruptive Technologies – Food for Thought!
These are new tech developments that are going to materially affect economies in the future. These are predictions that have validity due to changing cost criteria such as.

The reason why the above are referred to as disruptive technologies are the possible effects these new developments are going to have on significant existing industries, such as oil, car parts, power generation. The economies of whole countries will be affected, what about agriculture?