Small Business Relief Package
Date: 02 March 2010
• Reducing the size of provisional tax repayments business taxpayers have to make for the 2008/09 and 2009/10 income years. At the present time, taxpayers have to factor in 5% growth, but that will be dropped for those years. Transitional provisional taxpayers’ rates will also reduce by 5%.

• Reducing the use of money interest (UOMI) rate for underpayments of tax from 9.73% to 8.91%. The rate for overpayments will reduce from 4.23% to 1.82%.

• Raising the GST payments basis threshold from $1.3 million to $2 million, allowing more businesses to enjoy the cash flow advantages of having to account for GST only when payment from invoices is actually received.

• Raising the GST registration threshold from $40,000 to $60,000 and allowing businesses that earn less than $60,000 to de-register from GST if they wish.

• Enabling businesses with $10,000 or less of business-related legal expenditure to fully deduct the expense in the year in which it was incurred, regardless of whether it is capital in nature or not.

• Raising the PAYE once-a-month filing and payment threshold from $100,000 to $500,000 to allow more employers to file PAYE returns and pay PAYE once a month instead of twice a month.

• Raising the fringe benefit tax (FBT) annual filing threshold from $100,000 to $500,000 to allow more employers to file FBT returns and pay FBT annually rather than quarterly.

• Raising the value of minor fringe benefits (such as chocolates and flowers) that can be provided to employees without attracting FBT to $300 per quarter per employee and $22,500 per year per employer.

The amendments that involve law changes will be included in a taxation Bill to be introduced this month for application generally from 1 April 2009 or from the 2009/10 income year where appropriate. The new use of money interest rates will apply from 1 March 2009, and the new FBT rate on low-interest, employment-related loans will apply from 1 January 2009.

Comings and Goings
Date: 09 December 2009
P.A Tania Bell (formerly Cox) who has been with us for 18 years, gave birth to her first child Thomas in October. She is currently on Maternity leave. We have engaged Sharon Porter on a fixed term contract until the end of November 2009 to handle Tania's work while she is on leave.

Louise Hunt who has been with us for 6 years gave birth to her first child, a girl named Tegan, early December. Louise will stay as part of our Team working remotely from her home in Hawera.