St Andrews Accounting

Small Business Accountant

Tax Returns

Autumn 2021

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Here is the latest update from the world of accounting:

New top tax rate

The government has recently announced a new top tax rate of 39% from 1 April 2021. This will only apply for individuals with total annual income over $180k. This new law is only expected to affect 2% of New Zealanders.

Income tax payments

For those who had a tax bill owing for the 2020 financial year and haven’t yet paid it, the final date for payment is 7 April 2021. If this affects you then I will email you directly to remind you of this.

2021 Tax returns

March 31 is not far away. After this date I will start to complete tax returns for the year ended 31 March 2021. I will be in touch directly to request the information needed. In the meantime, make sure any outstanding payments are made, cashbooks are up to date and all receipts are easily accessible.
If you have any questions please let me know.

Regards -Andrew

IRD targeting tradies

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I regularly receive e-mails from IRD outlining which areas of tax crime they are currently focusing on. Here is a passage from a recent e-mail I received from IRD:

We’re looking hard at tax crime in the construction industry.

We’ll be contacting tradies to encourage them to declare all of their income through their GST and income tax returns. While most people in the construction industry are doing the right thing, we’re reminding your clients that undeclared cash jobs can have negative consequences. They can result in tax penalties, a criminal conviction that could affect their ability to contract for work, and even prison time.

This is a serious warning to tradies in the construction industry that any cash jobs they are doing may be found out by IRD and punished. If this wasn’t enough of a warning, I received another e-mail from IRD one week later:

We’re emailing you again to let you know we’re looking hard at tax crime in the construction industry.

IRD mean business with this so if you have any friends or family members who are tradies and you know they are not declaring all their income, please make them aware that the IRD are targeting them. If they need help completing their tax returns, feel free to pass on my details to them and I can help them file all the relevant returns.