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Xero Updates

Ben DuflouThursday, September 19, 2019

Xero is constantly enhancing their system to make it better and easier to use, for businesses and accountants alike. Some of the more recent enhancements have been focused towards improving their app on both Apple and Android devices, allowing you to do more on the go.

You can check out some more of their updates by following the link below. Try some of these features out to enhance your Xero experience.

https://www.xero.com/nz/about/product-releases/

GST on Special Supplies

Ben DuflouTuesday, September 17, 2019



Special supplies for GST purposes differ from normal business sales and purchases. A couple of examples you will frequently come across are secondhand goods and hire purchase agreements.   

 

Secondhand Goods

When you purchase secondhand goods from a supplier who is not registered for GST, you can claim a credit for GST, based on the amount you have paid for the goods, as it is assumed GST was never claimed on these goods on the initial purchase. You need to keep a receipt, like you do for a normal purchase; it just won’t have a GST number for the vendor. Please note that livestock and fine metals and jewels are excluded from these provisions.

 

Hire Purchase

When you enter into a hire purchase agreement to purchase goods, including financing on vehicles, GST is claimable on the purchase price of the goods at the time they are purchased. This is because the financing arrangement is separate to the supply of the goods, and financing is exempt from GST.

 

Your accountant will need the hire purchase/financing agreement, as it generally includes interest and set-up costs, which are deductible for income tax purposes. They will also need the tax invoice for vehicle purchases, as it can include additional on-road costs that can be claimed in the year of purchase, instead of being included in the vehicle cost that is added to the Asset Schedule and depreciated.

IRD are moving on from cheques

Ben DuflouWednesday, September 11, 2019

From 1 March 2020, Inland Revenue will no longer be accepting cheques.

There are many different ways to pay – electronically or in person.

Here’s a summary of payment options:

  • myIR: You can pay by direct debit and make debit card and credit card payments securely through myIR online services. Visit the IRD website (ird.govt.nz) and login or register for myIR.
  • Online banking: Make payments using online banking "Pay Tax" function.
  • Credit or debit card via IRD website: Use your credit or debit card to make online payments through the website. Visit ird.govt.nz/pay.
  • In person at Westpac: Pay by EFTPOS or cash at a Westpac branch or Smart ATM.
  • Money transfer: If you are overseas you can pay IRD using a money transfer service. Search for “make a payment” on the website for more information.

Charges may apply for some payment options.

If you have any questions, or would like some assistance with setting up online payments etc., don’t hesitate to contact us.

Chartered Accountants Smart Payroll Xero Certified Advisor