Tax Changes

Tax Changes

The Business Continuity Package to assist businesses struggling due to the impact of the COVID-19 outbreak includes 5 proposals related to tax:
• Increase in the low-value asset write-off threshold: The low-value threshold has been raised to allow the immediate expensing of assets that cost less than $5,000 in the 2020-2021 income year. There will be a temporary increase for assets purchased in the 12 months from 17 March 2020. After 17 March 2021 the threshold will be $1,000.
• Increase in the provisional tax threshold: he provisional tax threshold has been increased from $2,500 to $5,000 from the 2020/2021 income year. While provisional tax may not be payable throughout the year, taxpayers will need to be mindful of a higher terminal tax cost on 7 April 2022.
• Use of money interest remission: The package allows Inland Revenue the discretion to remit use-of-money interest (UOMI) on late payment if the taxpayer’s ability to make the payment on time was significantly adversely affected by COVID-19.
• Depreciation on non-residential buildings: From the 2020/2021 income year onwards, depreciation is permitted on commercial and industrial buildings. The depreciation rate is 2% declining value or 1.5% straight line. This applies to existing and newly acquired buildings and to capital improvements made to existing buildings.
• Removal of hours test from the In-Work Tax Credit: The hours test eligibility requirement for the in-work tax credit (IWTC) is removed from 1 July 2020

Sunday, 10th January 2021


Back...
 
 
"I was very pleased to have taken up David's offer of a business planning session.

The outcome was a clear set of business goals for growing Leisureline Clothing and the specific actions needed to achieve that growth.

All aspects of my business were covered in a practical and realistic manner, covering a number of areas including sales, marketing, financial requirements, operations and staff.

I now have an uncomplicated plan as a useful guide to preparing for the future and delivering growth.

Any business owner who takes the opportunity to use David's business planning skills is sure to get real benefit from it.

David's open sharing of knowledge combined with genuine and trustworthy personal service and support, sets him apart from the pack."

 
Graeme Dick
Director
LEISURELINE CLOTHING LTD
 
 
Copyright ©  |  View Desktop Version