ACC invoices are coming:-
What you need to know:-
Whether you’re self-employed, a contractor, or you have staff, you’ll likely receive an invoice from ACC between mid-July and mid-August.
Everyone in New Zealand who is in business has to pay ACC levies, which are separate from general tax and cover the cost of injuries caused by accidents.
How ACC determines your leviesWhen you file a tax return or register for GST with Inland Revenue, you choose a Business Industry Classification (BIC) code. This describes the business activity you do.
Inland Revenue passes your BIC code, liable income or payroll, and your contact details along to ACC, so they can invoice you for levies based on your business activity.
Some jobs have more risks than others, so some industries pay higher levies than others.
Why have I received an invoice? (external link) — ACC
Paying levies if you work or own a business (external link) — ACC
ACC levies
Types of ACC levies
Everyone who works or owns a business in New Zealand pays levies. These levies cover injuries that happen at work, at home, on the sports field, and when you’re out and about.
There are three types of ACC levy:
Earners’ levyEveryone who earns a salary in New Zealand pays the Earners' levy, which helps cover the cost of accidents that happen in your everyday activities outside work. It’s a flat rate, currently $1.21 per $100 (excluding GST) of your liable income.
Work levy
This levy goes into the Work Account to fund injuries that happen at work, and it’s different for every business.
Working Safer levy
This levy supports the activities of WorkSafe New Zealand, and is a flat rate - currently 8c per $100 of your liable payroll or income.
What if the details on my invoice are wrong?
ACC receives your income details from Inland Revenue. If they’re not correct on your invoice, get in touch with Inland Revenue, who will send any updates to ACC.
If any other details on your invoice are wrong, eg you’ve changed business activity or ceased trading, this could affect the levies you’re paying.
The fastest way to update your business details is to go online (the link is below). If your invoice is wrong, ACC will send you a debit or credit adjustment.
Do you have more questions about ACC levies?
Employers can call 0800 222 776, or self-employed people can call 0508 426 837.
You can also contact ACC by email at business@acc.co.nz.
Whether you’re self-employed, a contractor, or you have staff, you’ll likely receive an invoice from ACC between mid-July and mid-August.
Everyone in New Zealand who is in business has to pay ACC levies, which are separate from general tax and cover the cost of injuries caused by accidents.
How ACC determines your leviesWhen you file a tax return or register for GST with Inland Revenue, you choose a Business Industry Classification (BIC) code. This describes the business activity you do.
Inland Revenue passes your BIC code, liable income or payroll, and your contact details along to ACC, so they can invoice you for levies based on your business activity.
Some jobs have more risks than others, so some industries pay higher levies than others.
Why have I received an invoice? (external link) — ACC
Paying levies if you work or own a business (external link) — ACC
ACC levies
Types of ACC levies
Everyone who works or owns a business in New Zealand pays levies. These levies cover injuries that happen at work, at home, on the sports field, and when you’re out and about.
There are three types of ACC levy:
Earners’ levyEveryone who earns a salary in New Zealand pays the Earners' levy, which helps cover the cost of accidents that happen in your everyday activities outside work. It’s a flat rate, currently $1.21 per $100 (excluding GST) of your liable income.
Work levy
This levy goes into the Work Account to fund injuries that happen at work, and it’s different for every business.
Working Safer levy
This levy supports the activities of WorkSafe New Zealand, and is a flat rate - currently 8c per $100 of your liable payroll or income.
What if the details on my invoice are wrong?
ACC receives your income details from Inland Revenue. If they’re not correct on your invoice, get in touch with Inland Revenue, who will send any updates to ACC.
If any other details on your invoice are wrong, eg you’ve changed business activity or ceased trading, this could affect the levies you’re paying.
The fastest way to update your business details is to go online (the link is below). If your invoice is wrong, ACC will send you a debit or credit adjustment.
Do you have more questions about ACC levies?
Employers can call 0800 222 776, or self-employed people can call 0508 426 837.
You can also contact ACC by email at business@acc.co.nz.
Business.govt.nz - make business easier
Holiday and short term rentals: what you need to know
December 2017
If you’If you’re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.
Key things to consider for holiday rentals:
With the rise of online holiday accommodation websites like Airbnb and Bookabach, listing a property for short-term let is easy. But there’s more to it than just putting your property out there. Key things to consider include:
Check out your local council rules on short-term accommodation — some councils require you to register properties which are rented out, e.g. Queenstown Lakes District Council.
Make sure you fully understand the terms and conditions of any hosting website you use.Rental agreementsWhen a house you own is used as a holiday rental, you’re not covered by the Residential Tenancies Act. This means standard rental agreements don’t apply.
Some hosting sites, like Airbnb, include booking terms and conditions in your page listing. If terms and conditions aren’t included when you list your rental, you’ll need to create and enforce a written agreement outlining your terms and conditions.
The agreement should cover rules and expectations about:
If you use a template provided by your preferred hosting website, make sure it suits your situation and covers everything you need it to.
Check your preferred hosting site for rental agreement templates and tips on attracting and vetting guests.If you're a landlordYou can’t ask tenants to move out temporarily so you can make more money over the summer by using the property for Airbnb or similar.
If your tenants decide to sublet the property while they’re away, they need your permission and must abide by their tenancy agreement. They can’t sublet the property without your permission.
Subletting (external link) — Tenancy Services
Insurance, tax, customer vetting and the Consumer Guarantees Act are all things to consider when letting to holiday-makers.
Understanding consumer laws
Tax obligationsIncome you receive for providing accommodation, including through websites like Airbnb or Bookabach, is taxable. This includes any payment for one-off or irregular rentals. Exceptions apply, see renting out your holiday home below.
This means you:
GST rules might apply if you offer guests meals, cleaners or other services in addition to accommodation. If you’re not sure, check with Inland Revenue — or your accountant, if you have one.
Your tax obligations when renting out a residential home (external link) — Inland Revenue
Claiming expenses: You can only claim expenses if you declare your rental income in your tax return.
Remember: expenses you can claim include rates, insurance, cleaning and advertising.
Claiming expenses (external link) — Inland Revenue
Holiday homes you rent out and use yourself:
There are different tax rules if you have a mixed-use holiday home where:
Tax rules for mixed-use assets (external link) — Inland Revenue
GST for mixed-use assets (external link) — Inland Revenue
Keeping tax records
Insurance:
Your usual house and contents insurance might not cover you if something happens while your property is rented out. Speak to your insurer — you may need to pay a higher premium or arrange extra cover, but this is better than finding out too late that damage isn’t covered.
Talk to your insurer about cover for:
Some hosting websites offer free cover for these types of things, but it’s worth a chat with your insurance company either way.
Insurance
Health and safety.
Check whether there are any regulations you need to comply with — your local council is a good place to start.
Examples include:
If you’If you’re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.
Key things to consider for holiday rentals:
With the rise of online holiday accommodation websites like Airbnb and Bookabach, listing a property for short-term let is easy. But there’s more to it than just putting your property out there. Key things to consider include:
- creating and enforcing a holiday rental agreement
- tax obligations, if any
- insurance cover
- health and safety and consumer laws
- claimable expenses and record-keeping.
Check out your local council rules on short-term accommodation — some councils require you to register properties which are rented out, e.g. Queenstown Lakes District Council.
Make sure you fully understand the terms and conditions of any hosting website you use.Rental agreementsWhen a house you own is used as a holiday rental, you’re not covered by the Residential Tenancies Act. This means standard rental agreements don’t apply.
Some hosting sites, like Airbnb, include booking terms and conditions in your page listing. If terms and conditions aren’t included when you list your rental, you’ll need to create and enforce a written agreement outlining your terms and conditions.
The agreement should cover rules and expectations about:
- payments, including deposits and refunds
- maximum number of guests
- pets
- camping, eg extra guests can/can’t pitch a tent on the lawn
- smoking/non-smoking
- liability, eg if someone has an accident on your property.
If you use a template provided by your preferred hosting website, make sure it suits your situation and covers everything you need it to.
Check your preferred hosting site for rental agreement templates and tips on attracting and vetting guests.If you're a landlordYou can’t ask tenants to move out temporarily so you can make more money over the summer by using the property for Airbnb or similar.
If your tenants decide to sublet the property while they’re away, they need your permission and must abide by their tenancy agreement. They can’t sublet the property without your permission.
Subletting (external link) — Tenancy Services
Insurance, tax, customer vetting and the Consumer Guarantees Act are all things to consider when letting to holiday-makers.
Understanding consumer laws
Tax obligationsIncome you receive for providing accommodation, including through websites like Airbnb or Bookabach, is taxable. This includes any payment for one-off or irregular rentals. Exceptions apply, see renting out your holiday home below.
This means you:
- must include the income on an Individual tax return (IR3). This can be filed online — for most people it’s due 7 July
- can claim expenses for the time you rented out the space, eg rates, insurance, cleaning and advertising
- must keep clear records to confirm all income and expenses.
GST rules might apply if you offer guests meals, cleaners or other services in addition to accommodation. If you’re not sure, check with Inland Revenue — or your accountant, if you have one.
Your tax obligations when renting out a residential home (external link) — Inland Revenue
Claiming expenses: You can only claim expenses if you declare your rental income in your tax return.
Remember: expenses you can claim include rates, insurance, cleaning and advertising.
- You can only claim expenses for the time you rented out the space.
- If you're renting out a room, you can only claim a proportion of your household expenses.
- Remember to keep clear records to confirm all income and expenses.
Claiming expenses (external link) — Inland Revenue
Holiday homes you rent out and use yourself:
There are different tax rules if you have a mixed-use holiday home where:
- you stay in the holiday home yourself sometimes
- you rent it out to others sometimes
- it's not used for a total of 62 days or more during the tax year — or the same proportion if you buy or sell it partway through a tax year, eg a total of 31 days if you sell six months into a tax year.
Tax rules for mixed-use assets (external link) — Inland Revenue
GST for mixed-use assets (external link) — Inland Revenue
Keeping tax records
Insurance:
Your usual house and contents insurance might not cover you if something happens while your property is rented out. Speak to your insurer — you may need to pay a higher premium or arrange extra cover, but this is better than finding out too late that damage isn’t covered.
Talk to your insurer about cover for:
- theft or damage by short-term holiday tenants
- cover during times the property is empty
- loss of income — if something major happens and you are unable to rent the property out.
Some hosting websites offer free cover for these types of things, but it’s worth a chat with your insurance company either way.
Insurance
Health and safety.
Check whether there are any regulations you need to comply with — your local council is a good place to start.
Examples include:
- Fit smoke detectors throughout the property and check these are in working order every three months.
- Any deck more than 1m high has a fence of at least 1m high right around it.
- Any pool deeper than 400mm is fenced.
- Hazardous items like chemicals and poisons are properly stored and kept out of sight.
- Any kayaks or boats provided for use are seaworthy and life jackets are provided.
Business expenses: What can you claim?
All self-employed people can claim expenses, contractors included. If you work from home you can claim some household expenses, too. Learn about valid expenses.
Check it out
Are you under insured?
Holding back on insurance can be tempting when money’s tight. But allowing for risk could mean the difference between going under and thriving.
Read more
Selling online: Hobby or business?
If you regularly sell online, you are “in trade”. This means paying tax and complying with consumer laws.
Read more
Customer complaints: Fixing delivery problems
Step-by-step advice for sellers on what to do if a customer complains about damaged parcels or delayed deliveries.
See how
Save on power: new online tool for business
Could your energy use be eating into profits? EECA’s new tool tells you where you use most power and how to use less. Get custom results and easy ways to save.
Find out more
Compliance just got easier
It’s now easier than ever to find out how your business can comply with government rules with the updated online tool Compliance Matters.
Check it out
Employment rights: Free online training
If you, or people you advise, employ staff, it’s important to know the rules. These short online courses can help.
Try it
MAKE BUSINESS EASIER - INFO@NEWS.BUSINESS.GOVT.NZ
CONTACT US
If you have a business issue or question, you can call business.govt.nz free on 0800 424 946
SHARE
Ministry of Business, Innovation and Employment
15 Stout Street, Wellington 6011
FOLLOW US
Facebook Twitter YouTube LinkedIn
All self-employed people can claim expenses, contractors included. If you work from home you can claim some household expenses, too. Learn about valid expenses.
Check it out
Are you under insured?
Holding back on insurance can be tempting when money’s tight. But allowing for risk could mean the difference between going under and thriving.
Read more
Selling online: Hobby or business?
If you regularly sell online, you are “in trade”. This means paying tax and complying with consumer laws.
Read more
Customer complaints: Fixing delivery problems
Step-by-step advice for sellers on what to do if a customer complains about damaged parcels or delayed deliveries.
See how
Save on power: new online tool for business
Could your energy use be eating into profits? EECA’s new tool tells you where you use most power and how to use less. Get custom results and easy ways to save.
Find out more
Compliance just got easier
It’s now easier than ever to find out how your business can comply with government rules with the updated online tool Compliance Matters.
Check it out
Employment rights: Free online training
If you, or people you advise, employ staff, it’s important to know the rules. These short online courses can help.
Try it
MAKE BUSINESS EASIER - INFO@NEWS.BUSINESS.GOVT.NZ
CONTACT US
If you have a business issue or question, you can call business.govt.nz free on 0800 424 946
SHARE
Ministry of Business, Innovation and Employment
15 Stout Street, Wellington 6011
FOLLOW US
Facebook Twitter YouTube LinkedIn
IRD Scam targets Kiwi's tax returns - reports the NZ Herald
Clients of Karaka Accounting Services Ltd - should contact us if you have any further questions about their Tax Returns.
NZ Herald - Breaking news 2pm Tuesday 13th June 2017.
An online scam targeting Kiwis filing a tax return has been uncovered by the Herald, and the Inland Revenue is now investigating the scheme.
Inland Revenue confirmed the fraud when the Herald forwarded an email chain purporting to be from IRD.
The email arrives with subject line reading, "IR3 individual income tax return 2016".
It goes on to read: "After the last calculations of your fiscal activity, we have determined that you are eligible to receive a tax refund".
With a domain name of "public.service.department@inlandrevenue.org", it then lists a figure in New Zealand dollars for what the targeted person is owed.
"Please submit the tax refund request and allow us 1-3 days in order to process it," it said.
An external link for the victim to click on and enter their personal details is then offered for the person to claim their "tax refund".
"Note: A refund can be delayed a variety of reasons, for example submitting invalid records or applying after deadline," the email warns.
It ends with a copyright claim for Inland Revenue and that for "security reasons" the user will be "automatically logged off after 15 minutes of inactivity".
An Inland Revenue spokesman told the Herald it was not a genuine email, and warned people of several scams the department was aware of during this year's tax season.
"We have not had reports of this particular scam," he said. "No genuine email from Inland Revenue would have this suffix.
"Scams of various types - mainly email or phone - are unfortunately a fairly constant occurrence these days."
He advised anyone who had received the email, or may have already fallen victim, to contact Inland Revenue on 0800 227 774 with their IRD number.
Ways to spot a scam
The IRD will not:
• Send you an email with a hyperlink to a webpage that asks you to submit personal information.
• Send you an email, knock on your door or phone you promising a tax refund.
• Ask you to pay money to release a tax refund.
• Ask you to pay a tax debt using iTunes cards, or any type of gift voucher.
• Threaten legal action "out of the blue" unless you immediately start to repay a tax debt.
• Send a representative to your house without an appointment. If someone turns up at your house, make sure you check their identification carefully and contact IRD if you are concerned.
NZ Herald - Breaking news 2pm Tuesday 13th June 2017.
An online scam targeting Kiwis filing a tax return has been uncovered by the Herald, and the Inland Revenue is now investigating the scheme.
Inland Revenue confirmed the fraud when the Herald forwarded an email chain purporting to be from IRD.
The email arrives with subject line reading, "IR3 individual income tax return 2016".
It goes on to read: "After the last calculations of your fiscal activity, we have determined that you are eligible to receive a tax refund".
With a domain name of "public.service.department@inlandrevenue.org", it then lists a figure in New Zealand dollars for what the targeted person is owed.
"Please submit the tax refund request and allow us 1-3 days in order to process it," it said.
An external link for the victim to click on and enter their personal details is then offered for the person to claim their "tax refund".
"Note: A refund can be delayed a variety of reasons, for example submitting invalid records or applying after deadline," the email warns.
It ends with a copyright claim for Inland Revenue and that for "security reasons" the user will be "automatically logged off after 15 minutes of inactivity".
An Inland Revenue spokesman told the Herald it was not a genuine email, and warned people of several scams the department was aware of during this year's tax season.
"We have not had reports of this particular scam," he said. "No genuine email from Inland Revenue would have this suffix.
"Scams of various types - mainly email or phone - are unfortunately a fairly constant occurrence these days."
He advised anyone who had received the email, or may have already fallen victim, to contact Inland Revenue on 0800 227 774 with their IRD number.
Ways to spot a scam
The IRD will not:
• Send you an email with a hyperlink to a webpage that asks you to submit personal information.
• Send you an email, knock on your door or phone you promising a tax refund.
• Ask you to pay money to release a tax refund.
• Ask you to pay a tax debt using iTunes cards, or any type of gift voucher.
• Threaten legal action "out of the blue" unless you immediately start to repay a tax debt.
• Send a representative to your house without an appointment. If someone turns up at your house, make sure you check their identification carefully and contact IRD if you are concerned.
Selling Property? calculating RLWT
Selling property? Know how to calculate the correct amount of RLWT?
The 6th edition of our popular book A Practical Guide to Taxing Property Transactions provides comprehensive
coverage of the bright-line test and the associated measures subsequently introduced - namely the residential
land withholding tax (RLWT) and new disclosure and registration requirements.
Extract from Chapter 9 "Selling the Property":
Calculating RLWT
The amount of RLWT is the lesser of:
- 33% (or 28% if the vendor is a company) x (current purchase price – vendor's acquisition cost), or
- 10% x current purchase price, or
- the current purchase price less the amount required to discharge a loan secured by a qualifying mortgage less outstanding local authority rates.
RLWT is payable out of the "residential land purchase amount" (s YA 1), that is, an amount paid or payable for the
disposal of residential land, excluding any deposit or part payment that totals less than 50% of the purchase price.
This ensures that the withholding tax will usually be payable at settlement.
Example
Marama left New Zealand four years ago to go and work in Australia. Despite her best intentions, she has never
returned to New Zealand since she left. Eighteen months ago she purchased a residential rental property in
Hamilton from her old neighbour for $300,000. She has just signed a contract to sell the property for $450,000.
She has a mortgage of $250,000 on the property and outstanding rates of $1500. The purchaser has paid Marama
a deposit of $90,000 before settlement. The RLWT to pay is $45,000 (ie the lesser of the three options outlined
above, being 10% x current purchase price).
Note that the prices used to calculate RLWT are net of GST, if any.
Ready to find out more
Practical and up-to-date, this book will provide readers with the knowledge required to effectively manage the
complex tax rules affecting property transactions.
For more information or to order your copy of the A Practical Guide to Taxing Property Transactions for only $120.00 (plus GST), visit the CCH Bookstore.
Alternatively, you can order by phone on 0800 500 224 or email nz-cchbooks@wolterskluwer.com
understanding provisional tax
Provisional tax makes it easier to pay your income tax by spreading the payments over the year. If your end-of-year tax was more than $2,500 then Provisional tax makes it easier to pay your income tax by spreading the payments over the year. If your end-of-year tax was more than $2,500 then you'll have to pay provisional tax the following year.en you'll have to pay provisional tax the following year.
Instalment datesYour provisional tax payment dates depend on the option you use for calculating provisional tax and when your tax year ends.
Your balance date is the last day of your tax yearFor most people this is 31 March. The 31 March balance date is known as the standard balance date.
Most people pay three instalments of provisional tax. People who file GST returns have other instalment options they can choose.
If you have the
Standard balance date of 31 March, the below due dates will apply:
Instalment Due dates:
1 28 August
2 15 January
3 7 May
If you file six-monthly GST returnsIf you're registered for and file six-monthly GST returns and have a standard 31 March balance date, you'll pay your provisional tax in two instalments:
Instalment Due dates:
1 28 October
2 7 May
If you use the ratio optionIf you use the ratio option for calculating your provisional tax and have a standard 31 March balance date, you'll pay your provisional tax in six instalments:
Instalment Due dates:
1 28 June
2 28 August
3 28 October
4 15 January
5 28 February
6 7 May
Late payment penaltiesMake sure you pay your provisional tax on time because late payments will attract penalties.
Penalty amount Applied
1% the day after the due date
4% seven days later
1% for each month the tax remains unpaid.
Source: IRD website 9 March 2017
Your balance date is the last day of your tax yearFor most people this is 31 March. The 31 March balance date is known as the standard balance date.
Most people pay three instalments of provisional tax. People who file GST returns have other instalment options they can choose.
If you have the
Standard balance date of 31 March, the below due dates will apply:
Instalment Due dates:
1 28 August
2 15 January
3 7 May
If you file six-monthly GST returnsIf you're registered for and file six-monthly GST returns and have a standard 31 March balance date, you'll pay your provisional tax in two instalments:
Instalment Due dates:
1 28 October
2 7 May
If you use the ratio optionIf you use the ratio option for calculating your provisional tax and have a standard 31 March balance date, you'll pay your provisional tax in six instalments:
Instalment Due dates:
1 28 June
2 28 August
3 28 October
4 15 January
5 28 February
6 7 May
Late payment penaltiesMake sure you pay your provisional tax on time because late payments will attract penalties.
Penalty amount Applied
1% the day after the due date
4% seven days later
1% for each month the tax remains unpaid.
Source: IRD website 9 March 2017
To the Company Director
Great news, the changes we've made to GST online are now here! We hope these improvements make managing your GST online a little quicker and easier.
My GST
Our records show that your tax agent files your GST return on your behalf. With your next filing date coming up, now's the time for you and your tax agent to check out the new My GST section. Just login to your myIR account and click on the My GST tab to get started. There's much more to My GST than filing your return, click here to see what other changes we've made.
To get started
We've got a few handy videos to help get you started, including a quick tour of the new GST online services, how to make a GST payment online and how to give someone access to your GST account.
Yours faithfully
Julie Mussen
Manager, Inland Revenue
Ref: eDM-T
Great news, the changes we've made to GST online are now here! We hope these improvements make managing your GST online a little quicker and easier.
My GST
Our records show that your tax agent files your GST return on your behalf. With your next filing date coming up, now's the time for you and your tax agent to check out the new My GST section. Just login to your myIR account and click on the My GST tab to get started. There's much more to My GST than filing your return, click here to see what other changes we've made.
To get started
We've got a few handy videos to help get you started, including a quick tour of the new GST online services, how to make a GST payment online and how to give someone access to your GST account.
Yours faithfully
Julie Mussen
Manager, Inland Revenue
Ref: eDM-T