Newsletter April 2018

Hi!

Summer is definitely over and now we are heading into the cooler months of winter. Wrap up warm and read on about our exciting business seminar and the latest updates.

Cash Flow Management Seminar:
Making a great profit in your business is one thing, but that’s not much comfort to you if your cash flow is bad and what’s left in your bank account does not relate to your business profits.
Join us for this 90 minute seminar where you’ll learn the different between profit and cash surplus, learn how the working capital cycle works, establish your Cash Conversion Cycle, identify the causes of poor cash flow in your business, and understand the process changes that improve your cash flow.
Register your interest for our next Cash Flow Management Seminar on the 17th of May and get ready to adopt the mindset to succeed in this changing business landscape. https://davisandco.nz/2018/02/21/registration-form/

Bright Line Extention:
From 29 March 2018, the bright-line test that is used to determine if you have tax to pay on the sale of residential property has changed.
If you entered into an agreement to purchase residential property on or after 29 March 2018 and sell it within 5 years, you’ll need to consider if it is taxable under the bright-line test. If a property was purchased on or after 1 October 2015 through to 28 March 2018, the bright-line test will look at whether the property was sold within 2 years.
The bright-line test doesn’t apply if the property was:

  • your main home
  • transferred as part of an inheritance
  • transferred to you as an executor/ administrator of a deceased estate.

If you would like to discuss any property transactions, please contact us.

Self-employed or earning a Shareholder Salary and in Kiwisaver?
Annual member tax credit
If you’re contributing and are eligible, the Government makes an annual contribution of up to a maximum of $521.43 a year to your KiwiSaver account.
You need to contribute at least $1,042.86 a year (from 1 July to 30 June) to your KiwiSaver account to get the maximum member tax credit. As it can take up to 3 business days for contributions to be processed, we suggest you contribute before 25 June each year.
If you are self-employed, or earning a shareholder salary, you will have to make lump sum payment before 30 June 2018. Another good idea is to set up a weekly contribution of $20 so you can set and forget about it!
Talk to us if you would like to find out more.

ACC New online services:
ACC have upgraded their online system, which makes it easier for us to assist with any ACC queries amongst other things. As part of this process we need to relink all of you to this online system.  This is being done progressively over the next 12 months. We are aware that when we do this you may receive a notification letter from ACC.  This is all part of the process, and we often do need to communicate with the IRD and ACC on your behalf, so nothing to be alarmed about.

Thought of the day – Nothing GREAT ever came THAT easy