Season Greetings…… From everyone at Withers Tsang & Co, we would like to take this opportunity to wish you a very joyous festive season and a Prosperous 2011!!!!

Thank you for your support this year and we look forward to catching up with you in the New Year

» Our office hours over the Christmas and New Year period
» Office news
» Plan ahead - Provisional tax, GST, PAYE, FBT & bill payments
» Trust and annual gifting
» The Rugby World Cup - Renting Your Home Out
» GST Returns at 15% GST Rate

Thursday 23 December
Our office will close at midday.

Monday 17 January
Full services will resume.

Nicola Alexander obtained her CA qualification; Angel Lee, Kate Douglas & Manisha Morar have all passed their PCE1 exam.

And last but not least, we wish to congratulate Tina Soriano & Krita Killa on passing the very tough PCE2 exam…they will now work towards completing their practical experience for their full CA qualification in the near future.

Congratulations again!!!

Amidst the usual holiday pay and creditors commitments during the festive period, for another year, taxpayers are lumbered with the burden of paying the 2nd Instalment Provisional Tax during or soon after the festive season.

It may be a cliché but the message is planning…….plan your cashflow now……here are a few of the key dates to remember:

Provisional Tax
The 2nd Instalment for 2011 Provisional Tax is due on 15 January 2011.

Note: We have already prepared and sent IRD payment slips to all provisional tax clients. Please contact us if you have not received yours.

GST due dates
If you are GST registered your October/November 2010 GST return will also be due on 15 January 2011.

Note: Please remember to complete your GST return before you go on your holidays!!

PAYE due dates
Fortnightly PAYE clients

• The fortnight ending 31 December 2010 will be due on 15 January 2011
• The fortnight ending 15 January 2011 will be due on 20 January 2011.

• The due date for month ending 31 December 2010 will be 20 January 2011.

FBT due dates
Quarterly FBT Clients.

• For the 3rd quarter 1 October 2010 ending 31 December 2010 this will be due on 20 January 2011.

Set up bill payments
If you are going away for the holiday period OR you will not be back before 15th January, to avoid being charged late payment and late filing penalties, please remember to:

Either
Post your cheque & payment slip before you go on holidays to:
Inland Revenue Department
PO Box 1535
Hamilton

Note: DO NOT send post dated cheques to IRD as they will still bank it regardless and if it bounces, they may not represent it.
Or
Set up internet bill payment (post dated to go on 14 January 2011)
Or
Pay at your nearest Westpac bank branch
Or
Payment by credit card or debit card to IRD (Note: however this incurs a convenience fee of 1.42% per transaction for providing this service charged by IRD, except for payments made from overseas for:

• Student loans, and
• Non-custodial child support payments.

If you have a family trust, the festive season is a good time to check that your annual gifting for 2010 is done and up to date. If you are not sure, please contact your lawyer straight away.

Are you thinking about renting out your home while the rugby world cup is on next year? If so then there are some issues you will need to consider.

Most important - the Rental Income you earn will be taxable. And the IRD has already indicated this is an area they will be looking at closely.

You will be able to claim some expenses against this income. Some you will be able to claim 100% some you will need to be apportioned for the period the property is actually rented.

Expenses you will be able to claim 100% would be items specifically associated with renting the property e.g.: Advertising, Property Managers fees and preparing the property for tenants.

Expenses you will be able to apportion for the period the property was rented would include - Rates, Insurance and Interest on loans associated with the property.

Some non tax items to consider are - you will need to let your insurance company know that you are going to rent the property, for that time period, as you may not be insured otherwise.

If your property is owned by a trust, as trustees it may pay to review the trust deed to confirm the deed allows for the property to be rented.

The rate of Goods and Services Tax (GST) has been increased from 12.5% to 15% from 1 October 2010.

Clients who are registered for GST will need to prepare their very first GST returns at the new rate of 15% for the October/November GST period. Although the GST return for the period will not be due until 15 January 2011, most of the clients would like get the GST return and taxes sorted before enjoying a very relaxing Christmas holiday. We would like to remind our clients who are using Excel Spreadsheet to prepare GST returns to check and update the formula for calculating the GST portion.

If the price is GST inclusive, multiply it by 3 then divide by 23 to find out GST amount. Using the fraction method is preferred and always provides you with accurate answer. If you have any doubt and would like us to have a quick check before filing the GST return to IRD, please feel free to contact our office.

Quick Tips on GST calculations:

Throughout the 2011, we have many exciting events installed for our clients….we hate to see you miss out on any of these events.

So don’t forget to let us know when you change your e-mail addresses or prefer to use another one. You can e-mail milindak@wt.co.nz or rachels@wt.co.nz or accountants@wt.co.nz

Everyone here at Withers Tsang wishes you a safe and Merry Xmas. We all look forward to a more prosperous 2011.

Copyright © 2010 Withers Tsang & Co Ltd. All Rights Reserved.
24-26 Pollen Street | Ponsonby | Auckland 1021

This email was sent to you at the following address: [email address suppressed]
Click here to un-subscribe from our mailing list