When an accountant tells you ‘I will do your accounts.’ what does that actually mean? To answer this question, I need to start from explaining what an accountant is doing. Basically, in terms of a small business, what an accountant does is book keeping, bank reconciliation and reporting.
In this article we will introduce a time management tool called priority matrix. You can have try and see whether it is the right one for you.
Some people set up a family trust to receive residential care subsidy when they get old. By setting up a trust they dispose their interest in an asset to be eligible to receive subsidy. With changing rules of social security it is getting harder to get residential care subsidy.
With the abolition of gift duty you can gift as much as you want and there will not be any tax duty. However, for residential care subsidy there still is a maximum level of gift per couple is $26,000.
What is residential care subsidy?
Residential care subsidy is paid to rest homes or hospitals directly for entitled people by the Ministry of Health.
When a business wants to upgrade its computer, it is easy to become confused by the technical data. In this article I will provide you some basic information that will help you to choose a right computer for your business.
Choosing a PC is actually choosing its hardware. For office use, it is mainly about choosing RAM, CPU and hard drive.
Healthy body means healthy thoughts for business
Mobile application – Moves is awesome to record your daily activity.
This life style changing APP records real time information and its name is Moves. It tracks your everyday life and exercise. What you should do is just carry your phone in your pocket or bag.
This app automatically records your daily walking, cycling and running. It is able to recognise places in your daily life. It will generate a visualised report showing how you spend your day.
With the app, you can see you every day exercise and review your lifestyle. You can start with small changes that can lead to a fitter lifestyle and healthier habits.
Look through company (LTC) is a fairly new concept to our tax system which was introduced in Budget 2010. Basically the main purpose of introducing LTC is to strengthen our tax system by putting a cap on loss attribution rules.
Look through company rules were applicable from 01/04/2011 onwards and only apply to New Zealand resident companies.
What is it?
Subpart OB of ITA 2007 defines the rules related to Imputation credit accounts (ICA). Every company in New Zealand need to maintain an ICA account, basically if you are paying income tax then it is advisable to maintain this correctly as when you start distributing dividend you can also distribute imputation credits to the shareholders.
Imputation credit account is a memorandum account (section OA2), and section OA3 defines an ICA account must record all credits and all debits that arise in the account as at their credit date or debit date.
Credit balances
The credit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of credits over debits.
Debit balances
The debit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of debits over credits.
Motor vehicle is an integral part of any business, and the motor vehicle expense for a small business can be between $5000 to $8,000 per annum thus record keeping and tax rules adherence becomes important.
Things to know about your motor vehicle-
There are four important proposed changes to tax laws announced by the honourable minister Peter Dunne today while making Budget 2013 announcement:-
What is imputation credits?
Imputation credits regime was introduced in NZ in 1988. It is a system which avoids double taxation on already taxed income. So, when NZ Company issue you a dividend this is reported in your tax return as income, and imputation credits attached with that dividend are used as tax credits to avoid double taxation.
Section LA5 (4) ITA 2007: permits imputation credits to be used as credits to settle one's income tax liability.
What is franking credits?
Franking credits is similar to what we have in NZ as imputation credits. In Australia imputation credits are referred as franking credits.
NZ and Australia both have similar imputation credit tax regime which ensures the taxes paid in local jurisdiction are not paid twice.
