Welcome to JGH

11 April 2018

1st April 2018 Tax Changes.

1. Student Loan repayment threshold has increased from $19,136 to $19,448 per year. This means any earnings over $19,448 will be subject to 12% student loan repayments.

2. ACC Earner Levy Maximum Liable Earnings has increased from $124,053 to $126,286. Any income over $126,286 will not be subject to the ACC Earner Levy.

3. The adult minimum wage rate has increased from $15.75 to $16.50 (before tax) an hour.

3 February 2017

Mileage rate for self-employed and reimbursing employees

Have you kept records of your actual motor vehicle expenses when making business related travel?

If you answered No then there is an alternative.

You have the option to select the 2016 IRD prescribed mileage rate of 72 cents for persons whose business travel is 5,000km or less in an income year. For example, if you have business related travel of 4,500km in an income year, you can claim $3,240 as motor vehicle expense.

Talk to us today if you think this option best fits your business situation.

19 January 2017

Entertainment Expenses

Thinking of taking a client/customer to a sporting event or out for a meal and drinks.

If so then there is a certain expense rule that limits tax deductions. The rule here is the 50/50 rule. This is where expenses provided for entertainment, food and drinks off business premises are subject to only 50% deductibility.

If you are unsure what deductions are allowed, please don't hesitate to contact your trusty accountant and they will be more than willing to help.

 

16 August 2016

There is a strong trend developing in the finance teams of SMEs towards a "Lean Finance" function.

Area	Lean Finance Team Benchmarks
Month-end reporting	Fast month-end by day three or less.
Year-end accounts	Committing the auditors, your finance team, your  board and executive to a 45-working-day signed set  of annual accounts.
Annual planning	Produce the annual plan in less than two weeks from  the rolling planning exercises. Eventually the annual  plan will be dropped in favour of a quarterly rolling  planning process.
Key performance  indicators (KPIs)	Work with no more than 6 KPIs in the organisation.
Excel ad hoc  systems	All spreadsheets over 100 rows replaced with a   robust solution using one of the modern planning  and reporting tools now readily available. Excel   being phased out as a budgeting and planning tool  in favour of specific forecasting applications.
Streamlining the   chart of accounts	Having over 50 account codes for profit and loss   (P/L) is unnecessary and leads to miscoding and is   anti-lean.

9 August 2016

With the Auckland Unitary Plan about to be finalised property owners need to be aware of the effects of Section CB 14 of the Income Tax Act 2007. Where property has been held for less than 10 years the gain on the disposal of Land where 20% of the gain on disposal arises from rezoning or potential rezoning may be taxable. Land owners may reduce the taxable amount for each year the property has been held. Any clients looking to sell property affected by the unitary plan should seek advice.