 |
We promise your annual accounts, delivered at a fixed price and on a fixed day.
If you have any business query or problem, email me for a free of cost response.
Regards, Jamie Tulloch
Managing Director
Call me on (03) 379 2343 or email jamie@e3accountants.co.nz
|
TAX TIPS
From 1 April changes to Resident Withholding Tax (RWT) rates kick in. Those on a current tax rate of 19.5% will automatically go up to 21%. For tax payers earning less than $14,000 per annum, you can have your RWT rate changed to 12.5%. Most children would be in this category – a wee job for the school holidays at the lowest possible tax rate.
New Secondary Tax
A new, low secondary tax rate of 12.5% and new calculations for extra pays/lump-sum payments are being introduced from 1 April 2010. Check that your payroll system has been upgraded (usually happens in March) to include the new rates (as well as handling Payroll Giving Tax Credits).
The new, low secondary tax code (SB) for is individuals who want to apply the 12.5% rate to their secondary income. The new tax code can be used by individuals who expect their total income from all sources to be less than $14,000 for the year. A new formula will apply to employees who select this code, hence the calculation will change.
IRD’s online PAYE/KiwiSaver calculators will be updated from 1 April to include the new SB tax code. To calculate PAYE, go to "Work it out", "PAYE/KiwiSaver calculator".
IRD will also be updating the tax code declaration (IR330) form in March with the new secondary tax code SB, and the PAYE Deduction Tables.
(Thanks to the CECC for this tax summary)
BUSINESS TIP
Who Will Inherit Your Business?
Succession planning and the development of new leaders remain a priority in the changing economy. A sound succession plan can be a prudent step for most small business owners and is essential for some. Here are some best practices for succession planning, laying the basic groundwork for a tailored approach for finding a small business successor:
• Create A Plan. Recognise the need to plan, and embed succession planning into the organisation: Create a written succession plan documenting firm policies which sets a vision for internal staff members.
• Fix retirement issues. Set a mandatory sell-of-ownership age and stick to it.
Define “retirement” to prevent misunderstandings and disagreements.
• Develop future leaders. Consider potential successors on their individual merits; for family-run businesses, groom only the members who possess the appropriate skills and talent for the job. Get formal leadership training for the appropriate firm members. Develop client transition by getting high-potential staff involved with clients.
• Set a timetable for new leadership. Don’t underestimate the amount of time it can take to prepare a successor. In planning for a transition, the firm should allow enough time for the person to qualify for, and grow into, his or her new role.
(Thanks to The Main Report)
|
| |
|
Brief Client Profile
Stewart Carruthers - General Manager of TBA Communications one of our Auckland based clients. Two claims to fame. Creates all the Bunnings adverts here in NZ and finished 3rd in the really old blokes division of the Coast to Coast. Well done Stewart.
The average New Zealander eats between 15 and 20kg of bananas a year. (I know I do eat at least that). Bnanas make up around1% of all supermarket sales.
Next time you're in an elevator, resist the strong temptation to watch the floor numbers light up. Just look at the floor number when it stops to identify if this is your floor. Observe others who want to avoid eye contact by watching the numbers.
Albert Einstein "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
"The surest sign that intelligent life exists elsewhere in the universe is that it has never tried to contact us."
|
"During my 87 years, I have witnessed a whole succession of technological revolutions. But none of them has done away with the need for character in the individual or the ability to think"
Bernard Baruch, financier
In the 1400's a law was set forth in England that a man was allowed to beat his wife with a stick no thicker than his thumb.
Hence we have 'the rule of thumb'
Many years ago in Scotland, a new game was invented. It was ruled 'Gentlemen Only...Ladies Forbidden'.. .and thus, the word GOLF entered into the English language.
|
