WARNING FROM THE IRD
Cash Jobs in the Construction Industry
The IRD are targeting undeclared and cash jobs in the construction industry. They have indicated that they will be contacting many in the building sector to ensure they understand their compliance requirements and reminding them of the penalties for not declaring cash or contra deals.
As Chartered Accountants, we know how easy it is to spot when cash or contra jobs are done so trying to hide it from the IRD is just not worth the small benefit you might get from dealing under the table.
Cross the IRD once and expect extra surveillance in the future.
TAX AND TRUSTEES TIP
Continuing Tax Liability of Resigned Trustees
Are you a trustee of a trust? Then read on...
You still might be liable for tax and GST obligations of the trust even after you resign from being a trustee. Why?
Inland Revenue continues to hold a resigned trustee responsible for the trust’s taxes until it receives written notice of the resignation.
This includes the period of time between the resignation as a trustee and the receipt of the resignation in writing. The liability continues until any debt is paid.
If you want more information or how you may be affected, contact us and we can help.
MESSY BANK LOANS TIP
The Loan is in Whose Name?
We often see bank loans in the name of the individual borrower rather than to the company. This makes for messy tax deductibility of the interest paid and sheets the liability home to a person rather than the company. This seems to happen more often when loans are consolidated.
If the borrower is an individual and is on-lending the money to an associated company for business use, then there are two options. First, you can have an agency agreement between the borrower and the company or secondly an agreement for the company to pay interest to the shareholder.
The latter is the worse option because the company is obliged to deduct withholding tax if it is paying interest of more than $5,000 per annum, making a cashflow disadvantage.
Before you sign any loan document, see us. We’ll put you right.
LOOK ON THE BRIGHT SIDE TIP
Innovations Come From Mistakes
Seth Godin says that innovation often comes from mistakes, experiments, mis-steps and cock-ups. Until something works.
The process isn't to avoid the things that don’t work, cecause that means avoiding the things that might not work.
We should eagerly embrace mistakes on the road to the impact we seek.
Well said Seth.
P.S. from Jamie – it’s knowing how to spot a valuable mistake when it happens that is of most value to business owners. Read the story about the origin of Bluetac for a good example.
INTERNET MARKETING TIP
How Well Do You Upsell Online?
In October this year, Google confirmed that half of all searches performed worldwide are now done on a mobile device.
Once someone has ordered with you online, there’s a golden opportunity to present another offer. You already have a fully engaged customer, so now’s the time to make an offer they find hard to refuse.
Air New Zealand are absolutely nailing it, their ‘make an offer on a seat upgrade’ is slick and intuitive.
Information thanks to Mark Rocket - Managing Director of
Avatar Limited - leaders in web site design and marketing.
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How to increase the value of your business by 5 pm tomorrow, and every day thereafter.
A great little guide to help business owners begin to build up the goodwill and intangible value of their business.
One of the co-owners of Apparelmaster (Julie Borthwick) kissed the machine on arrival in 1999 and now kisses it goodbye to be replaced by an even bigger monster. Congratulations to the Borthwicks for creating a wonderful family business.
Free HR audit worth $200.00. Essential HR would like to offer all our subscribers an audit covering all people-related practices and processes.
1. Avoid Alliteration. Always.
2. Prepositions are not words to end sentences with.
3. Avoid cliches like the plague. They're old hat.
4. Comparisons are as bad as cliches.
5. Be more or less specific.
6. Writers should never generalise.
Seven: Be consistent!
8. Don't be redundant; don't use more words than necessary; it's highly superfluous.
9. Who needs rhetorical questions?
10. Exaggeration is a billion times worse than understatement.
Do you know how to deal with subcontractor payments in Xero where Withholding Tax needs to be deducted?
There are quite a few steps involved but it is only relevant if your payroll doesn’t handle it correctly. If you’re not sure how to do it right, contact us.
Book a free forty minutes with Jamie (one on one or via Skype) to discuss any aspect of your business, issues you are having or your plans for growth.
Image thanks: FreeDigitalPhotos.net, Stuart Miles, Renjith Krishnan and Jesadaphorn.