We have found that there is some confusion for business owners around the the tax treatment of the wage subsidy. Tax treatment of the wage subsidy (the technical stuff): It is not subject to GST. An order in Council is currently being drafted to treat it as exempt (Section 5(6E)(B) (iii GST Act) The wage subsidy paid to the employer is not taxable. It is excluded income under Section CX… Read more
We have received an excellent checklist by our friend Matt James from North Canterbury Business Services. This checklist provides business owners with key points and is helpful and concise. Please note: these topics have many parts that are constantly changing. For example, the wage subsidy and reducing pay to 80%: This needs to be negotiated and not unilaterally imposed by employers. We will be updating this checklist as changes occur.… Read more
For this newsletter, we have a special contribution from specialist HR lawyer Kirsten Maclean with five key bullet points that employers need to be aware of when considering redundancies and restructuring in the current environment. Kirsten advises that these are five key things you need to know when considering a restructure, including redundancies and how to deal with the wage subsidy, in light of the government’s COVID-19 wage subsidy scheme:… Read more
For full details of the scheme – click here. The scheme is open to Sole traders and self employed as well as employers. You will have to declare: 30% or more decline in revenue compared with last year for any month between January 2020 and the end of June 2020. Applications can also be made on the basis of forecast revenue loss within the period of the scheme. Maximum claim… Read more
The Government has released an economic response package to help cushion the impact of COVID-19 and support the economy during the COVID-19 crisis. The package includes: wage subsidy scheme leave and self-isolation support business cash flow and tax measures wider $12.1 billion package For full details on the package please read THIS ARTICLE. Our initial thoughts The tax measures in the overall fiscal package, although limited, are not cheap. The… Read more
A while back I read a statement from some wise business guru saying “you can’t scale time. Everyone has only 24 hours a day to do what they do.” My view is that of course, you can scale time. You can have a 30 hour day, a 100 hour day or a 300 hour day. Time is infinite and yes, it can be scaled. It’s called employment and delegation. If… Read more
Firstly, understand that most sales slumps are normal (statistically speaking). Sales slumps can often lead to new opportunities. Your best assets in a slump will be your positive attitude and having a fresh approach. Long term, you will achieve the best outcomes by being a sales-focused organisation. Sales will define your success or failure. You can only develop so much new product, produce so many units, set up so many… Read more
When you own a small business, it’s vital you understand how money flows into and out of it. At a basic level, you need to know where your income comes from and what your expenses are. At a deeper level, knowing how money moves through your business. This will help you make strategic decisions about growth, invoicing, and debt management. The consequences of not understanding money can be drastic –… Read more
The New Taboo – ‘Sitting-itis’ We continue to sit too much, despite many health warnings on the negative effects of sitting. What are the issues associated with sitting too much? Sitting can increase the risk of obesity, diabetes, heart diseases. It can also lead to poor mental health and even certain cancers. 78 percent of office workers feel they sit too much. Only 41 percent of office workers actually stand… Read more
Qualifying for a loan can be difficult. Especially in the early years of running a business. These years are crucial and are the years most startups need capital. Here are six considerations to help you get the financing before you need it: 1. Build a solid credit rating. Borrow. Have credit accounts. But pay them back and do not max them out. Their purpose is to build a solid credit… Read more
But Should We Use It? We’ve now got cheap money so let’s borrow more so we can spend more and save our country. Well that’s the message from the Reserve Bank. It’s a message I support but with one big fat caveat: It’s a message for business owners not households. If you’re a business owner only borrow to buy assets, technology or IP that will drive your revenue upwards, increase… Read more
Plan then invest in strategies and professional advice to maximise your business’ goodwill. Why? There are 2 compelling reasons: What you spend on increasing the Goodwill value of your business is 100% tax deductible. What you get paid for your Goodwill when you sell your business is 100% tax free. Is this not the best Win-Win in business? Tax-deductible expenses and tax-free capital gain! How do you increase the value… Read more
If you need a car to operate your business, you may wonder whether it makes more sense to buy or lease a company vehicle. On the one hand, if your business owns the car you’ll have a long-term asset and may qualify for more tax deductions. On the other hand, buying a car is a huge expense and monthly lease payments tend to be lower than car loan payments; they… Read more
Article published with special thanks to Janine Starks (except for ‘Special Note’ section). OPINION: As the old gag goes “money isn’t everything, but it sure keeps the kids in touch”. Inheritances seem so simple. You make a will, you die and any wealth you didn’t spend gets split between your family, friends and charities as you see fit. Yet the word “inheritance” is loaded with emotion, because you decide who wins and… Read more
Succession Planning & Business Exit Workshop II. Our first workshop was a great success – but we had more interest than seats – so we’re doing it again! Many businesses represent the owners lifetimes work – and the price they sell for dictates the quality of retirement that can be achieved. Every business should be sale ready. You never know when you may need to exit in a hurry –… Read more
No one likes talking about their death. This fact makes updating or even writing a will an unpleasant experience. Often, people put off thinking about their will for another day, assuming they have a lot of time to deal with it. Having an updated will, though, is vital for ensuring others follow your wishes after you die. It makes the process of sorting through your life much easier and… Read more
International Tax Obligations More of our transactions are done over the internet with less concern about where the items/services/work is coming from and more about providing what your customers need at a competitive rate. However, the Inland Revenue is concerned that the tax man is getting what they are owed, and international tax is no exception. It pays to know where you stand with your particular setup. This blog is… Read more
To many people, financial planning sounds like something for the very rich. The wealthy take their piles of money to someone who tells them where to invest it so they can make even more. The rest of us focus on saving what we can and paying off debt and hoping we become financially stable. What though, is financial planning really about? It is about having long and short-term financial goals… Read more
Small business growth hacks are great; they are affordable ways to nurture steady, sustainable growth. And deciding on an online marketing plan can be overwhelming. With time in short supply, the key is to find one or two growth strategies that will get results at minimal cost. These proven growth hacks offer business owners a few simple, cost-effective ideas for attracting new customers, increasing brand awareness, and ultimately, getting more sales.… Read more
Okay, there probably aren’t a lot of people who need to be convinced that a shorter workweek is a great idea. Small business owners, however, might be on the list of people who need a little encouraging. After all, every day they take off could mean a longer day to make up for the missed hours. There are some very real benefits to working a shorter week and those benefits… Read more