Tag: GST

Claiming GST on business expenses can help reduce costs, but it’s important to know what you can and can’t claim. Many businesses unknowingly claim GST on ineligible expenses, which can lead to costly mistakes. Here are some common errors to avoid when filing your GST returns. 1. Purchases from Non-GST-Registered Suppliers If you buy goods…

GST Mistakes That Could Cost Your Business

Feb 28, 2025

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Goods and Services Tax (GST) compliance is a crucial aspect of running a business in New Zealand. While it may seem straightforward, mistakes in GST registration, record-keeping, tax filing, and calculations can lead to serious financial consequences, including penalties, interest charges, and even audits by Inland Revenue (IRD). Understanding and avoiding common GST mistakes can…

Year-End Accounting: 3 Challenges Business Owners Face & How to Solve Them

Feb 28, 2025

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As the financial year draws to a close, many business owners find themselves in a rush to organise their finances, prepare reports, and ensure everything is in order for tax season. While some might attempt to handle these tasks alone, year-end financial reporting is far more complex than simply checking the books. From compiling profit…

Transfer Pricing: Key Considerations for Businesses Ahead of Year-End

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As the March and June financial year-end approaches, businesses engaged in cross-border transactions with associated parties must review their transfer pricing positions. Ensuring transactions are conducted at arm’s length—meaning they reflect the pricing that would occur between independent third parties—is critical for compliance with Inland Revenue (IR) and OECD guidelines. Proper transfer pricing planning helps…

Maximising Your Home Office Deductions: A Guide for Business Owners and Remote Workers

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Working from home offers flexibility and convenience, but it also comes with financial benefits in the form of tax deductions. If you use a portion of your home exclusively for business purposes, you may be able to claim home office expenses, reducing your taxable income and improving your cash flow. This guide outlines the key…

Why Businesses Must Prioritise Cash Flow at the End of the Financial Year

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The end of the financial year (FY) is a crucial time for businesses, not only for tax compliance but also for ensuring financial stability and strategic planning. Cash flow, in particular, requires close attention, as it directly impacts business operations, profitability, and overall financial health. Here’s why businesses must prioritise cash flow at FY-end and…

Time-Sensitive GST Transitional Rule: How to Avoid Unexpected Tax Obligations

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If you have claimed GST on an asset with mixed business and personal use, you could face an unexpected GST liability when selling it. However, a one-time transitional rule under section 91 of the GST Act provides a unique opportunity to opt the asset out of the GST system. This rule is only available until…

Tax Implications of Sole Trader vs. Company Structure

Jan 31, 2025

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The structure of your business – whether a sole trader or a company – has significant implications for taxes and financial responsibilities. Here’s a breakdown to help you navigate the differences and make informed decisions. Sole Trader A sole trader is the simplest business structure where you and your business are the same legal entity.…

Record Keeping Requirements: A Practical Guide for SME Owners

Jan 27, 2025

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