1st February, 2023
Business managers, accountants and bookkeepers will all be keeping the following key dates in mind for the End of Financial Year.
The start of each year means the start of tax time for New Zealand businesses in many cases.
And although 31 March is the nominal deadline for completing tax returns, it’s not the only date of note in the business tax calendar.
I recently spoke with MYOB expert and payroll consultant, Lynley Averis from AccountAgility to find out more about this busy time of year and to pin down the most important deadlines for business operators to be mindful of.
“Key dates vary business by business depending on the income tax regime, GST and payroll filing dates. Business owners need to be well aware of the dates and have them diarised”.
As such, be sure to keep a record of the dates that are likely to apply to you, and be sure to consult with a certified tax practitioner to confirm you have everything correct.
1 April marks the start of the new financial year begins in New Zealand.
This is an important date for businesses as it marks the start of a new period of tax obligations and compliance requirements.
“It’s important for businesses to check debtors outstanding and write off overdue debtors, complete a stock take and work-in-progress and take a good look over their general ledger for errors,” said Averis.
“A business should have a year-end procedure in place to follow every year”.
Terminal tax is due for the previous year, from March 2022.
GST return and payment is due for the 31/03/23 period.
“This is the last GST return for the year so a good time to double check your previous returns agree to that filed and make any final corrections.
“You might also be able to include your home office expenses, which may include 15 percent GST.”
Provisional tax is due to be paid — the 3rd instalment for the 2023 year.
This is the deadline for businesses to file their Income Tax returns unless they have an extension of time or use an accountant or a tax agent. Find an accountant or tax agent near you today.
Note: you’ll have to pay provisional tax if you had to pay more than $5,000 RIT (Residual Income Tax) to pay at the end of the year. Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year so much better for cash flow.
On this date, provisional tax is due to be paid — the first instalment for the 2024 year.
January of next year is the horizon many businesses will be looking to when it comes to medium-term tax and general business planning.
On this date, provisional tax is due to be paid — the second instalment for the 2024 year as well as the GST for the period ended 30 Nov 2023.
Averis tells us that payroll tax is one element that employers must be familiar with, as missing a PAYE lodgement is likely to incur penalties.
When those specific dates are, however, depends on your specific obligations.
“Your payroll deduction payment frequency to Inland Revenue depends on your gross annual PAYE and employer superannuation contribution tax,” said Averis.
“Filing your IR must be done within two business days of the payment to the employee. If late you’re stung with a $250 penalty.
“It’s crucial to get this right”.
You can find out more about your deduction schedule on the Inland Revenue Department (IRD) website.
GST is filed monthly, bi-monthly or six-monthly depending on your turnover and business type. Again, returns and payments must be made the last business date the month following the due date.
Keeping up to date with your business tax obligations can be challenging, but is nevertheless absolutely necessary to avoid being penalised by the IRD.
Averis’s big tip for anyone in business seeking to make tax time a little easier? Take advantage of automated tax compliance.
“It’s good to automate the process of filing from your payroll to the IRD,” she said. “As well as Pay Day Filing, you can also automate the filing of your GST return”.
“Doing so will save you time and stress by helping you meet those important deadlines and avoid the risk of penalties.”
She also provided the following general tips to help you stay on top of things:
“EOFY can be a stressful time of year, but it doesn’t have to be,” said Averis.
“Familiarise yourself with the dates that are most important to your business, organise your tax time activities around them and consider engaging a professional so that you can maintain compliance without the hassle.”
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