"Providing accounting services of the highest quality from our Warkworth premises since 1988."
Blog Layout
Don’t trip! GST mistakes to avoid
accelerateonline • August 30, 2020
GST can be a thorn in your side but if you understand when it’s due, what to pay, and make the most of your accounting software, you’ll escape unscathed. Here are four of the most common mistakes we see business owners make with their GST.
- Not putting aside money to pay GST. For better cashflow, keep 15% of your taxable supplies in a separate account. If you’re registered for GST on a six-monthly basis, you’ll be expected to pay the GST collected minus the GST you paid for the same period.
- Registering for GST too early or too late. If you are starting your business and you register too late, you may miss out on claiming GST on initial start-up costs, and you also might face financial penalties from Inland Revenue if you later find out you met the requirements to register. Talk to us and we’ll work it out together.
- Confusion around leasing and hire purchase. If you’re buying assets or equipment (or there’s an option to take ownership) you can claim GST when the asset is acquired. But if you’re only leasing or hiring an asset, the GST is claimable on each payment. There are many different types of leasing deals out there, so be careful with the fine print as GST may only apply to part of the regular payment.
- Not claiming business purchases paid from personal accounts. When buying assets for business use, you can claim a GST deduction, when the asset is to be used 100% for business purposes. When you buy something using your personal account for the business, it might be missed from the business records, and GST forgotten and not claimed. Remember that where there is private use, such as with vehicles, you can’t claim all of the GST – you need to adjust for the expected private use component.
Accelerate - December 2023
Accelerate August 2023
Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values, determined by a process involving a review of the livestock market as at 30 April.
The values for Dairy this year have seen a fall in values across all female classes, but increases across all male classes. The fall in R1 heifer values can be attributed to the prohibition of live export by sea commencing from 30 April 2023. For the first time the National Average Market Value for R1 Heifers is less than the National Standard Cost of breeding and rearing an R1 Heifer.
In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.
Sheep values have all fallen from the high of 2022, slipping back an average of 10.2%. Whilst values have fallen, they are still either the second or third highest that they have ever been depending on which class of sheep you are looking at.
Goat values have increased on average 7.8% with almost all classes of fibre and meat producing goats at record highs. The value of milking goats continues to be well down from historic highs, except for breeding bucks which are at their highest value.
Like the rest of the world, New Zealand has reeled from the aftermath of Covid, rising inflation and interest rates, and the cost-of-living crisis. This year we also have a massive storm damage repair bill.
Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.
Budget 2023 builds on the $889m already provided in response to this year’s storms. A further $6b is allocated for a National Resilience Plan , for rebuilding after weather events. $71b is committed to new and existing infrastructure projects: not only storm damaged communications, power and roading, but schools, hospitals, public housing, rail and road.
