Digital tools can help your business become more efficient, save time, and win new customers, but there are also dangers to watch out for. Cyber-attacks and con artists could target any small business in New Zealand. Here are the latest risks: Facebook danger One sophisticated Facebook scam has ensnared 10 million users. Millions of…
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Looking to invest in R&D this year?
The Ministry of Business, Innovation & Employment has announced that businesses performing eligible research & development can access faster and more frequent payments of the R&D tax incentive this year. What is the R&D tax incentive? The scheme provides a 15% tax credit to businesses conducting ‘eligible’ R&D activities and has supported more than…
IRD increases visibility of sales data
From April 1, 2023, payment service providers (i.e. EFTPOS providers and online payment platforms) must provide information to Inland Revenue every six months on all transactions processed. Inland Revenue will compare this information with what businesses have filed in their tax returns. They will follow up on any discrepancies in these comparisons.
Could the Government help you grow this year?
Yes, here is how: Research & Development Funding If you are a small company investing in product development, check out what is available through Callaghan Innovation. Business advisory servicesThe Regional Business Partner Network can back small businesses, with advice, support, and access to funding for business growth initiatives. Capability development vouchersIf you employ fewer than…
Should you sell a stake in your business?
Like every plant needs water and sunlight to grow, every business needs financing. Starting a business or expanding an existing one requires investment, and it can often be confusing for small companies to weigh up their options. Is it time to sell a stake? As a business owner, you may struggle with the concept…
What does the Fair Pay Agreements Act mean for you?
New Zealand has a new system of employment bargaining with the passage of the Fair Pay Agreements (FPA) Act which took effect from 1 December last year. Fair Pay Agreements bring unions and employer associations together to bargain for minimum employment terms for all covered employees within a sector or occupation. Visit Employment New…
Your alternative funding options
An outright stake sale might not be the best fit for your company. Here are three different paths you could take: Asset finance: A loan to pay for a particular business asset, such as a vehicle or piece of machinery. Pros Interest rates can be competitive if you are able to go through a…
What lenders want to know about your business
While getting a business loan from a bank can be painful (with reams of red tape to wade through), it’s not impossible. Here’s what banks are looking for. Motivation: Why are you in business, and what is your vision for the future? You should be able to explain this in a few short sentences.…
Why angel investors can be a godsend
If you run an innovative company offering the world something new, a partnership with an angel could be right for you. Angel investors are a great match for fast-growing businesses who want funding and are willing to hand over a slice of equity. In most cases, there are no collateral obligations to angel investors…
Digital boost for SMEs extended
At the height of the pandemic in 2020, the government announced its free Digital Boost support package to help small businesses transition to a digital world. The scheme was such a success, the following five services will be available until the end of June. Real world video case studies, showcasing how small Kiwi businesses…
GST Special Alert 2023
New rules on GST invoicing apply from 1 April 2023. These changes have been designed for 21st century business record-keeping and modernise invoicing rules in place since 1986, based on paper-based record-keeping systems. The rules are permissive, so businesses can issue current tax invoices without falling foul of the new rules. However, this doesn’t mean…
Top tips for running a thriving family business
There are so many upsides to running a family business: working together as a close-knit unit and sharing the good times together. However, being in charge of one can be complicated as you juggle company interests with those of your loved ones. Family is loyal and dedicated, but problems can arise when emotions get…
The key to succession planning success
So you’ve created your company from nothing, put years of blood, sweat and tears into its success, and retirement is just around the corner. What do you do next? If you’re one of the lucky people who have an exit strategy, congratulations. If you’re unsure what will happen, it’s time to think about succession…
Why it’s important to define roles in a family-owned business
Whether you’re running a small family business or one that employs dozens of people, defining roles and governance is vital for any SME. The basic roles in a company include ownership, governance, management, and operational. Setting out a clear structure can bring long-term benefits and prepare your company for growth. Ownership, aside from literally…
The benefits of family advisory boards
Every business, large or small, deserves to be run as professionally as possible. By setting up the right structure you can give your family business the best chance of success. While the family knows your business inside out, it can be helpful to have independent parties on hand to provide an external perspective. A family…
GST invoicing changes are coming!
New rules modernising GST invoicing and record-keeping requirements will apply from 1 April 2023. The key change is removing the requirement to issue and hold a “tax invoice” document (which meets certain prescribed requirements on details required), and instead having GST requirements met provided specific GST information is held through various business records, for…
Navigating the new world office
Pre-Covid, we never would’ve imagined working from home could be so welcomed and productive. The pandemic has pushed many companies to make the long-needed leap into the digital world, and as a result, remote working offers a lifestyle like never before. Now, your team can ditch the commute, gain more flexibility for family life,…
Could your business survive without you?
Would your business still thrive, or would it suffer a catastrophic failure if you suddenly stepped away? It’s tough to remove yourself from the day-to-day operations when you’re passionate and busy. However sudden accidents, illnesses, or family emergencies can – and will – happen and you need to be able to step back knowing your…
Time is money - make the most of it
We’re all familiar with the phrase ‘time is money’ so why isn’t it tracked in the same careful way as our finances to maximise both? Remote working has brought with it a wave of disruption and time is a hot commodity. Here are four ways you can re-set and prioritise productivity. #1 Get your team…
Employment law changes, April 2022
From 1 April 2022, the minimum wage rate increases from $20 per hour to $21.20. Communicate the change with your employees in writing and if you have staff on salary, make sure their total remuneration meets the requirements.The Holidays Act is getting revamped bringing new ways of calculating holiday pay and other leave entitlements and…
Time to grow? A guide to attracting investors
If you don’t have the working capital to invest in significant expansion, it might be time to consider bringing investors on board. Pitching to raise funding can be a nerve-racking experience, so here are some tips to impress: Investors need to see evidence of an opportunity before they’ll part with their time and money. One…
Six financial myths busted
Those long-held beliefs holding you back from financial freedom need to be dispelled. Take a closer look at budgeting and money management. Myth: I need a credit card for emergencies. Reality Check: Someone who just lost their job won’t be able to pay rent or their mortgage with a credit card. That’s why having an…
Residential investment property: what you can claim for
If you’ve invested in residential property, you may be scratching your head over whether recent tax changes affect you. If you borrowed to acquire residential property before March 27, 2021, interest deductions will be phased out over the next three years. If you bought on or after March 27, 2021, you won’t be allowed…
Summer Staff Generation
A how to guide: Getting the staff you need over the silly season during a global pandemic is tough. If you’ve tried Seek, Careers, and Trademe with no luck, maybe it’s time to think creatively. And remember, while our unemployment rate is low, there are always going to be part-time workers looking for more…
Directors: Know your role
If you’re a director, make sure you’re up to speed on both company law and the accepted code of behaviour required for the job. If you ignore the underlying principles of ‘good faith’ and ‘duty of care’ you could be fined up to $200,000 or face jail time. Remember to: Maintain a consistently solid…
Six simple ways to make your business more sustainable
Assess your environmental impact. Look at your materials, emissions, and waste. Try carbon calculators Ekos or Toitu or the new Climate Action Toolbox. Put your green mission on paper. What does sustainability mean to your team, company, industry, and clients? Developing a short mission statement establishes your priorities and gets everyone on the same…
Residential Rental Property Tax
There are many tax implications when investing in residential property in New Zealand. Property investment and understanding the impact of current tax laws and their application is rather complex now, Please seek professional advice when you are unsure of the implications, as mistakes can be costly! The Brightline test For sale and purchase agreements that…
Employment Matters
Sick leave entitlement changes The recent passing of the Holidays (Increasing Sick Leave) Amendment Act increased the employee sick leave entitlement from 5 to 10 days per year. The change comes into effect on 24 July 2021. The day in which the employee’s sick leave increases is based on their next entitlement date and not automatically…
New Trust Disclosures
With the introduction of the 39% tax rate for individuals from 1 April 2021, the Inland Revenue is increasing the information it collects from trusts to assess compliance with the new tax rate and to monitor how trusts are being used. Trust disclosure obligations The additional information that needs to be included in a…
Purchase Price Allocation Rules
If you are planning to buy or sell a business, you need to be aware of the new purchase price allocation rules that apply to business asset sales as well as commercial property sales. The new rules took effect from 1 July 2021 and impact the way parties allocate the agreed purchase price between…
Reinstatement of Depreciation on Commercial Buildings
Since the 2012 income year the depreciation rate for commercial and industrial buildings had been reduced to 0%. Following the Government’s raft of Covid-19 support measures, depreciation can now be claimed on commercial and industrial buildings from the beginning of the 2021 income year. The reinstatement will mean commercial and industrial buildings are now…
Covid-19 Business Support
This lockdown was announced at 17 August 2021 and has triggered three of the government’s existing policies – Resurgence Support Payment, the Covid Wage Subsidy, and the COVID-19 Leave Support Scheme. The terms ’employee’ and ‘business’ below include sole traders and shareholder-employees. Some information and applications may not be immediately available, so keep checking…
Your step-by-step guide to meaningful customer feedback
Make a list of seven key clients or customers to call for feedback. Decide who is going to make the calls or split them between two staff members. Email in advance explaining how committed you are to improving your customer service and experience, that you value their constructive feedback, and would like to interview…
Does the new 39% tax rate affect you?
The new 39% marginal rate that applies to all employment income over $180,000 is now in force. Consider how the new rate will affect you and your business. The 39% tax rate and… Trusts? From now on, you’ll need to disclose a lot more information to Inland Revenue in your annual trust tax returns.…
Good communication = repeat customers = more profit
Did you know customer retention is faster and, on average, costs up to seven times less than customer acquisition? If you’re looking to improve your bottom line by turning your current customers into lifetime customers, here’s the best way to communicate with them. Communicate kindly Customer service is key, whether it’s in-person, on the phone,…
Paid parental leave applications online
Now’s the time to let staff know applying for paid parental leave just got easier. As of March 2021, your staff can apply for paid parental leave via myIR on the Inland Revenue website. The site can now pre-populate information it already holds for customers, such as contact details, name of employer(s), and an estimate…
Six things you should know before filing your EOY Tax post COVID-19
New rules to keep cash flowing If money is a bit tight as the financial year draws to a close, here are four tax measures focused on providing and enabling cashflow that you might like to consider: 1. The tax loss carry-back rule, which means if you’re expecting a tax loss for the year ended…
Trusts Act 2019, What you need to know
Trusts Act 2019 As of 30 January 2021, there will be significant changes to New Zealand trust law. Therefore, 2020 is the year for trustees to review trust arrangements and to make any necessary changes, and to be ready to comply with the Trusts Act 2019. The Trusts Act 2019 is the first major rewrite…
Keeping you and your staff pain free in 2021
Whether you and your staff are sitting or standing at work, there are risks to physical and mental wellbeing that can be easily avoided. Here are some top tips from Erin Holland from Active+, who’s an experienced physiotherapist in occupational health. What are the key health and safety risks when you’re working in an office?…
Lead by example: be a mental health champion
Did you know the main reason people take time off work is due to poor mental health? So, it’s in your best interest to promote positive mental health at work. Plus, stats show investing in building and maintaining good mental wellbeing at work boosts productivity, sales, creativity, and customer satisfaction. Here are some straightforward, effective…
Implementing health and safety so it sticks
Have a health and safety policy and plan in place? Great! But how can you ensure everyone’s 100% on board? Here are four simple steps from Livewire HR to get your crew on the same page. Make it relatable. To engage staff in health and safety at work, they need to understand why health and…
Health and Safety: Do I need help getting it right?
Since the Health and Safety at Work Act 2015 came into place, specialised advisors and consultants have been popping up all over New Zealand. But how do you know who’s genuine? We talk to Rebecca Jenkins from Livewire HR, who says it’s all about doing your groundwork. What should businesses look for when seeking help?…
From Airbnb to boarders: What’s new for property owners?
Renting your home or bach online? If you rent a property for short periods, you need to know your tax commitments. New rules announced last May come into force this financial year. Here’s what you need to know: 2,500 If your tax due at end of year is more than $2,500, you’ll have to…
What’s new in 2020?
Partnership Law gets a makeover: The Partnership Law Act 2019, which governs business partnerships …
Are you a landlord? Keep up with the changes
With a third of New Zealanders renting homes, and some for a lifetime, it’s key to have clear, fair rules for tenancies. The Government’s tenancy law reforms announced late last year aim to improve tenants’ security and stability while protecting landlords’ interests. The Residential Tenancies Amendment Bill is now making its way through Parliament,…
Five steps to a healthy rental property
To boost the quality of rental properties in New Zealand, the Healthy Homes Guarantee Act was passed in 2017. If you’re a landlord, there are five actions you need to take to ensure your property meets the Healthy Homes Standards. By 1 July 2024, you need to provide: Fixed, efficient and healthy heating devices…
New kilometre rate for claiming motor vehicle expenses
Are you using your car for business purposes? It’s timely to outline the process for claiming tax on your work vehicle expenses. If you’re using a vehicle for business purposes, you can claim tax back on expenses. If you use the vehicle only for business, you can claim the full running costs. If you…
Four-week checklist to keep tax time low-stress
Week 1: First things first Talk to your accountant or bookkeeper. They’ll tell you what you need to do before 31 March including what you can claim for and what you can’t. Remember, tax time is busy for them too, so the more prepared you are, the smoother the process, and the better the…
Family Trusts
Introduction Family trusts have become a popular way of conducting small business operations in New Zealand. There are a number of persons who form and operate the trust. Settlor This is the person who establishes the trust and signs the trust document. They may transfer property other than the initial settlement to the trustee to…
Pricing and Profits
This guide contains the following topics: What is profit? How to increase profit Developing a profit improvement strategy Adding value What is profit? Profit is residual The important thing to note is that profit is ‘what’s left over’. In other words, profit is residual. It is the consequence of what happens in and to your…