Newsletter November 2018

What's on your Christmas Wishlist?


Is enjoying the Christmas break Number One on your list?


We all deserve a break over the Christmas period and it's been scientifically proven that taking the odd bit of time out makes us all more productive when we return to work.

We all need to take a break sometimes. Oddly, though, many people leave their vacation time unused. Whether you take a vacation, a staycation, or a playcation, it's important to take a break from the job, the routine, and the demands of life in order to keep stress levels in check.

When we take a break, we're not shirking responsibility; we're taking care of ourselves so we'll have the stamina to be our best.


Is having a happy work-force Number Two?

Here's a quote from the Ministry of Business, Innovation and Employment (New Zealand):

‘Businesses that create a work environment where employees’ physical and mental well-being is considered have lower absenteeism, fewer injuries, and experience higher productivity and customer satisfaction. A company culture of support is also good for attracting and retaining employees.

Employees who feel healthy and supported are more productive, engaged, resilient, creative, and generally perform better.’


And is number three, reducing stress?

Stress in business is all too common.  Did you know that even your posture could have an impact on your stress levels?

In a 2015 article, researchers concluded that when facing a high-stress situation, study participants with good posture maintained a higher self-esteem and mood, while those with poor posture experience heightened stress and used negative words to describe their experience.

Source: US National Library of Medicine

If you've visited our offices recently you may have noticed that Lisa-Jean doesn't have a conventional office chair but sits on Swiss ball and Don uses a 'standing desk' and they are both always sporting a smile and a friendly welcome.


If you've visited our offices recently you may have noticed that Lisa-Jean doesn't have a conventional office chair but sits on Swiss ball and Don uses a 'standing desk' and they are both always sporting a smile and a friendly welcome.

Employee benefits at Christmas

Nobody wants to be Scrooge at Christmas and you may be thinking about ways in which you can reward your staff for all their hard work in 2018.

Here are some things to consider:

Staff parties - Throwing a staff party can be a great way to see out the year and celebrate successes, but there are tax considerations to think about.  50% of your Christmas party expenses may be claimed in your GST and income tax returns if the expenses relate to your business. Expenses can include:

  •  food and drink
  •  entertainment
  •  venue hire
    * Note, entertainment outside of New Zealand is 100% deductible, as long as they relate to your business.

Business gifts and entertainment - Generally, you can claim the costs of gifts as a business expense, e.g. Non-perishable hampers or gift vouchers. However, food and drinks or other consumable items are only 50% deductible.  A meal out provided by the business is an entertainment expense and you can claim 50% as a business expense.

Christmas Bonus - If you are thinking of giving your staff a cash bonus this Christmas, make sure to use the lump sum bonus tax rate when including this in your PAYE return.  Alternatively, paying your staff in vouchers and keeping below the Fringe Benefit Tax Threshold can be a great reward resulting in tax free perks for your team, and a 100% deductible expense to your business. The thresholds to keep below are as follows:

  • $300 per employee per Quarter, or
  • $22,500 total for the whole team per year, or
  • $1,200 total per employee per year

Giving to charity - You can deduct 100% of the cost of entertainment you provide to members of the public for charitable purposes. For example, if your business donates food to a party at a hospital.  Give us a call if you require further information.

Paying Staff over the Holidays - When there is a public holiday on a day your employee usually works, they’re entitled to a paid day off. You can only require employees to work a public holiday if it is written in their employment agreements. Also, if they agree to work, you must:

  • pay them at least time and a half
  • give them another paid day off later – an alternative holiday or day in lieu

What you can expect from Davis & Co in 2019

  • New and exciting seminars to help boost your business growth and profitability.
  • We will, for the 3rd year running, be entering a team in the Kapiti Run for Youth.
  • We will, of course, be continuing to offer our personalised service to all our clients, existing and new.  We will help you clarify your goals and the steps needed to achieve them.
  • In order to practice what we preach, the Davis and Co team will be taking a well-deserved break over the Christmas period.  Mike has turkey to baste, Lisa-Jean has a tree to trim, we could go on but you get the idea.  We would like to let all our clients know that the office will be closed between Monday 24th December and Friday 11th January.

Thank You!

We would like to take this opportunity to thank our wonderful clients for your loyalty and support this year. We wish you all a safe and Merry Christmas and look forward to seeing you all in the New Year!