October 2021 - Update

October 2021 - Inside this issue

• Extension of GST Return due date
• Online Xero training
• Government Support packages
• Subsidy Information required for Tax Returns
• Urgent work required
• Xero's People's Choice Awards

Extension of GST return due date

IRD have agreed that businesses and individuals will have more time to file and pay their GST and Provisional Tax that is currently due on October 28th due to a system closure from 3pm Thursday 21 October to 28 October 2021.

One, two and six-monthly GST returns and payments for the taxable period ending 30 September including provisional tax instalments, can now be filed and paid up to 4th November.

Online Xero training

As you all know, we try and put on some client training at least once a month. As we are still in Level 3, and unsure when we will be back in the office, we have decided to host another Xero online training.

Designed for new Xero users, or a refresher for those who are still unsure, on how to reconcile transactions, create invoices and bills to pay and get the best from the cloud based system.

The training will be held online using Microsoft Teams, Thursday 14th at 10am. Training will last approximately an hour and a half.

Please register your interest to attend by clicking on the link below.

You will then be sent an the online meeting link the week of the training.

Xero Training Registration

Government Support packages

The Wage Subsidy is a payment to support eligible businesses, organisations and the self-employed affected by Alert Levels 3 and 4, so they can continue to pay employees and protect jobs.

You can apply for the Wage Subsidy regardless of where your business is located in New Zealand. However, your business must have been affected by the continuation of Alert Level 3 or 4.

The Wage Subsidy is paid in two-week periods. Since the alert level change on 17 August 2021, four rounds of the scheme have been announced: Wage Subsidy August 2021, Wage Subsidy August 2021 #2, Wage Subsidy August 2021 #3 and Wage Subsidy August 2021 #4.

Applications for the first three rounds have now closed.

Applications for the fourth round, Wage Subsidy August 2021 #4, opened on Friday 1 October and will remain open until 11.59pm on Thursday 14 October.

You can apply on the Work and Income website.

The Minister of Finance has confirmed a third payment of the Resurgence Support Payment (RSP) for the alert level increase that started on 17 August. Businesses will need to show a 30% or more drop in revenue in a 7-day period from 1 October until immediately before all of NZ returns to Alert Level 1 compared to a typical 7-day period in the 6 weeks before 17 August.

The payment will stay as $1,500 plus $400 per full-time equivalent (FTE) employee up to a maximum of 50 FTEs, or four times the actual revenue decline experienced by the applicant, whichever is less.

Applications will open for the third RSP payment at 8am on Friday 8 October on Inland Revenue's website.

Businesses and organisations will be able to apply for the third payment even if they have received prior payments

Subsidy Information required for Tax Returns

Self-employed customers, small businesses and other individuals who received a wage subsidy or leave support payment from the Ministry of Social Development (MSD) or the Resurgence Support Payment from IRD due to COVID-19 will need to account for this income in their income tax returns where the payments have not passed through the PAYE system. Unfortunately, with how the system was setup, us as Tax Agents, have no visibility on who has applied for the subsidies in the IRD.

We therefore request you please record and track the payments you have applied for and then provide this information when we complete your Tax Returns.

If we have not yet completed your 2021 Tax return, we will need the following information from you:

Did you receive any Covid-19 Wage Subsidies from 1 Mar 2020 to 31 Mar 2021? If so, could you please provide the below information?

• IRD number the subsidy was applied for under
• Date the funds were received
• Exact amount received
• Copy of application, if available

Did you receive any Covid-19 Resurgence Support Payment (RSP) from 1 Apr 2020 to 31 Mar 2021? If so, could you please provide the below information?

• IRD number the payment was applied for under
• Date the funds were received
• Exact amount received
• Copy of application, if available

For the 2022 Tax Returns, we will be requesting this information as part of the Annual Checklist.

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Urgent work required

We take great pride in the level of expertise and quality of work we offer, and we are able to deliver on these positive results by scheduling our work throughout the year. Our process of scheduling all annual accounts work assists us to effectively manage the workflow during the year and ensure that all annual accounts are completed and processed before the end of the financial year.

It is therefore essential that we get as much lead time if you require your accounts by a certain time, or you require additional reporting for funding. If you are planning on remortgaging or taking out a loan in the near future, please let us know as soon as possible. We will therefore endeavour to schedule your accounts to be done within those timeframes.

Please be aware, that we need at least 5 working days to complete additional or urgent work, such as Forecasting or Due Diligence reports. Additional work such as this, or if you are requiring your accounts to be completed as a matter of urgency, may be subject to additional fees.

Xero's People's Choice Award

We are very excited to part of the Xero awards again this year!

One of the highly sought-after awards, is the NZ People’s Choice Award. Nominated by clients, this Award recognises a Xero Accounting Partner for their Value they have delivered to their clients over the last year.

As you can imagine, as an Accounting Practice, acknowledgement and recognition from our clients is the biggest praise of all. We would be honoured to receive your nomination which would give us your vote of confidence and acknowledgement for the services we provide.

To Start click on the link below and Submit a Nomination below:

Submit a Nomination

We've also put together a step by step guide on how to submit a nomination.

Just click on the link below to find out how:

How to Guide on Submitting a Nomination

Nominations close on Friday 15 October so make sure you get in quick and make your voice heard!

The main question you will need to answer is why you are nominating us, the more detail you can put on how we have helped transform your business the better:

• You could be nominating us for our customer service and our friendly team.
• For the additional support and guidance you get that makes us more than just an accounting practice.
• It could be for the change you have seen in your business since we have been your accountants.
• Or how we recommend the best accounting tools to help your business grow.

Nominations close on Friday 15 October so make sure you get in quick and make your voice heard!

We would love your nomination!

If you have any questions or concerns for us, please don’t hesitate to get in touch with us.

Our staff are still working from home, so email remains the best option to get in contact, however, our office number is still functional is you have any questions (09 869 2200).

From

THE TAEL SOLUTIONS TEAM