It's Monday 18 February, we are all sitting at our desks ready to "attack" the week.
"With our passion and purpose you will profit."
As the card above suggests ... we love what we do!
BIGGER BEANS & BETTER RESULTS AWAIT
Everything we do is targeted at making your accounting easier by condensing bundles of information into simple strategies to get you ahead.
But getting ahead and reaching your financial ambitions can't be achieved by just doing your end accounts and tax returns, touching base with you frequently or getting together regularly will.
We will surprise you with what we know and what advice and ideas we can offer.
Have a listen to our team song ...
Payday filing is a new method for reporting information to Inland Revenue and is compulsory from 1 April 2019.
From 1 April 2019 employers must:
· File employment information every payday instead of via an Employer Monthly Schedule (IR348), which has previously been completed at the end of each month.
· Provide new and departing employees' information, as well as their date of birth – if they have provided this to you, to Inland Revenue as part of each payroll run processed.
The due date for payment of applicable PAYE remains the same, being the 20th of the following month (or 5th and 20th of the month for twice-monthly filers)
From 11 March 2019, the ir-File service in MyIR used to previously file the Employer Monthly Schedule (EMS – IR 348) and the Employer Deductions Forms (EDF – IR 345), will be discontinued.
The Payroll Returns account tab replaces this and will show in your MyIR account from 28 February
For more information about payday filing go to ird.govt.nz/payday
QUESTION OF THE WEEK... 18 FEBRUARY 2019
GST implications of having an Airbnb rental
Company A generates Airbnb income from a residential property (which was previously rented out to long-term residential tenants). Company A will soon be generating income above the $60,000 GST registration threshold and will need to register for GST.
- Can Company A claim input tax for the purchase value of the property or would an input be claimed for the market value at the time the property became an Airbnb?
A person is entitled to make an input claim when they introduce an asset to a taxable activity that was acquired before they commenced the taxable activity.
This claim is done through the GST apportionment process with the first adjustment period starting on the date the asset was acquired and ending on the balance date following the asset being introduced to the taxable activity. As the property has been owned during a period when Company A was not registered, only a portion of the input tax will be claimed at the end of the first adjustment period (because the use for making taxable supplies since the property was acquired will be less than 100%). If Company A uses the property for Airbnb 100% of the time, Company A will claim the balance of the input tax at the end of the second adjustment period. Otherwise on-going adjustments will be required.
The apportionment is based on the input tax the person could have claimed at the time of purchase if the asset had been acquired for the sole purpose of making taxable supplies.
If the asset is sold, GST will need to be accounted for on the sale. If Company A has not claimed all the input tax relating to the property's purchase at the time of sale, a wash up calculation is undertaken to determine if further input tax can be claimed.