to contact us call
0800 11 33 99
jamie@e3accountants.co.nz
Office: 10 Oxford Terrace, Christchurch, NZ
Invitation
BUSINESS TIP
5 Tips on How to Protect Your Bank Account:
  1. It's unsafe to throw out bank account details – your own or the people you pay
  2. Regularly check your on-line bank account details are the same as those shown on the creditors'' invoices. Businesses do change hands and so do bank account numbers.
  3. Does your business insurance protect you against fraud?
  4. If your staff are paying your bills using Internet banking, have two people authorised to make each payment. Police this rigorously. An authoriser should not be allowed to give their access token to another authoriser when they go on holiday. Provide for the absence of an authoriser..
  5. Set authorisation limits for those who have access to the business bank account.
TAX TIP FOR HAIRDRESSERS
Watch out for GST! 
Jonny owns a hairdresser's salon. Bridget agrees to work in the shop. She is to get 50% of her takings. Bridget is not registered for GST but Jonny is. Bridget earns $300.00. Does she get $150.00 in her hand or $150.00 less GST?
The answer depends on the contract. If Jonny's shop is selling services, GST needs to be deducted.. However, if Bridget is deemed to be operating her own business under Jonny's roof and the customers who sit in Bridget's chair are deemed to be her own customers, no GST needs to be deducted.
Unfortunately, these arrangements are often not documented. As accountants working to keep you out of trouble with the IRD, we would never know if Bridget is paid out of the till each day and therein lies a tax issue should either party ever be audited. Other examples are dentists, massage parlours, bar girls etc.
If you are not sure about your GST liability, instruct us to review your business relationships. Following our advice is not mandatory but it sure beats ignorance which is never a defence.
TAX DEDUCTIBLE WINE AND FOOD!
It can be true – read how
You can generally claim 100% of the cost of gifts such as food, wine or even event tickets, as an expense. When these items are given as gifts they are not covered by the entertainment rules. However, if you give gifts to employees, you may need to pay FBT.
Another angle: A business owner has two staff and provides the ingredients which they are free to use to make their daily lunches. Provided the cost per quarter per person is less that $300 and there are no other gifts taking the total above this threshold, the lunches are fully tax deductible and there is no FBT liability.

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Resilience : Vicki O'Fee
Our salute this week goes to our client Vicki O'Fee from V for Hair in Merivale Mall.
Vicki was away in Queenstown when her staff were told at 9am on the 11th Feb to vacate the mall. 
By 10:30 they had found premises in Holy Lee rest home and were back in business. 
This is an amazing story especially with 17 staff. Vicki is now busy looking for a permanent location as the future of the mall is uncertain – it could be months and demolition has not been ruled out.
We wish you all the best with your efforts Vicki, you're a wonderful example of resilience under pressure.
COAST to COAST 
Congratulations to our clients:
Ken Anderson from Blenheim who did the two day individual event in 14hrs:53mins:24sec. I understand it was his first ever attempt. Well done Ken, that's a great time.
Stewart Carruthers from Auckland who teamed up with the eldest competitor Dave Kennedy at 71. Dave ran the mountain like a goat. Quite amazing. And Stewart paddled like he was being chased by someone half his age. (He was because most were).
Glen Hedges from Christchurch who was one of the guides for the first ever blind competitor to tackle this event. Congratulations Glen for giving so much of your time and skill to make this happen.
If I've overlooked any other E3 client involved in this event, please let me know. 
Tax Calendar
April 9th – 2011 terminal tax if March balance date
May 7th – 3rd instalment 2012 provisional tax if March balance date
May 28th – 1st instalment 2012 provisional tax if December balance date
Contact details
P: 0800 11 33 99
E: jamie@e3acountants.co.nz
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