To reconcile your loan payment, you will need to set up a new “Liability” code on Xero and name it Government Covid Loan and ensure that its set to No-GST. Any repayments will also be coded to this loan.
Click on this link https://central.xero.com/s/article/Add-or-edit-an-account-in-your-chart-of-accounts for instructions on how to do this or let us know and we can help with this.
If you contact the IRD at the moment, do not expect to hear a response from them, due to the volume of communications and also they are shutting down over Easter to make websites updates. The IRD have advised that they will be putting a hold on charging interest or penalties until 20 May 2020. Once this deadline has passed they will then consider the payment plans put forward and will advise what, if any, interest and penalties will be charged. So sit tight and watch this space
There is no substance to these claims, currently the IRD will only write off debt if it is applied for under financial hardship and many of those applications fail, tax is only ever written off in a small number of cases.
You can use this search engine by Work and Income to locate your employer.
This may be the subject of announcement coming soon, but at the moment, they are still going ahead with the increase.
We are encouraging all our clients to think about this ahead of time. You can organise your own payment plan in your My IR portal – but please feel free to contact firstname.lastname@example.org and we can help you.
TAX and GST Related
When you have more than $5,000 tax to pay, you enter into the IRD’s Provisional Tax Regime.
Provisional tax means you pay tax for the current year in advance.
Instead of paying one lump sum of terminal tax, provisional tax is designed to ease cashflow by prepaying smaller amounts throughout the year.
This is the difference between what tax has been paid during the year (as provisional tax, PAYE or withholding tax) and what is actually owed.
If too much has been paid, then a refund is due. If too little was paid, then this is the terminal tax amount. It’s a wash-up of total tax due for a year less what you’ve already paid.
Standard: based on your previous years results plus a small uplift Estimated: you estimate what your tax will be for the year and make payments based on this estimate Accounting Income Method (AIM): You pay your provisional tax during the year as you earn the income.
This depends on what method you use to calculate (see above), your balance date and also whether you are GST registered.
Normally if you use the Standard and estimate basis with a standard balance date of the 31st March you have to make three payments due on the 28th August, 15th Jan and 7th May.
If however you are on six monthly GST basis these dates will coincide with your GST returns and you will be required to make two payments on the 28th October and 7th May.
If you use AIM then these payments will also be due with each GST return, usually six payments a year.
If you use the standard method and your total tax for the year is below $60,000 and you have made all of your Provisional tax payments in full and on time then you will not be charged interest or penalties. If however you are late or underpay your tax then you lose your “safe harbour” which means any late payments or outstanding tax including your final terminal tax payment will be subject to interest.
If you use the standard method but your total tax for the year exceeds $60,000 then you could be subject to interest.
If you use the Estimate basis and you have calculated this incorrectly then yes you could be subject to interest.
If you use the AIM basis and you have taken reasonable care that the figures on your AIM return are accurate you will not be subject to interest.
If you have an extension of time then this is payable by the 7th April following the end of tax year. For example, terminal tax on the year ended 31 March 2020 is payable on 7th April 2021. If you don’t have an extension of time then this payment will be due by 7th February following the end of the tax year.
The IRD grants this to tax payers who are linked to a tax agent (like Beany). This extends the filing date of income tax returns to the 31 March following the tax year end, giving you an extra nine months to file your returns. EOT can be removed if you do not file on time or you do not have a tax agent. This means that you must file your income tax returns by 7th July following the tax year end.
Your tax summary in Beany takes figures from a specific date and, if payments have been made after the summary was prepared, it may not be updated to show these. This is particularly true if you’ve made payments (or not made them) outside of the normal payment dates. We are working on a direct link to the IRD so it will always be up to date, but right now they have other priorities! So there may be circumstances where due to timing issues we have not updated Beany. If you notice this, please contact us and we will confirm exactly what is due.
Beany is a New Zealand company with the large majority of our team based right here in New Zealand spread across many cities.
Beany will give you advice and support on any matter relating to tax, accounting or your Xero file as part of your package. We are here to help!
If you do need any help that is outside our scope of services, we will advise and quote for it first.
So how does it work?
You can call and email us as often as you like. The type of questions we get range from help with your Xero file, asking when your tax is due and what to do with your payroll!
We always aim to respond within 24 hours with answers to your questions, although at peak accounting times it may take a little longer.
Our support desk is staffed by qualified and experienced accountants who can respond quickly and accurately. If needed, they will also liaise with your personal Beany accountant.
And should you require some out-of-scope work, such as preparing a cash flow summary for the bank, or working out a fresh tax structure, we will let you know any extra cost before we start.
We can also offer you some training to help you manage some of these tasks yourself. It’s all part of the service!
Yes! By using technology and all the efficiencies it provides, we have removed all unnecessary overhead costs and passed these savings directly on to you. Check out our pricing.
At Beany we’re all about the customer, and have structured our business to ensure everything is done on your terms, when it suits you. Beany interfaces with a number of accounting solutions (like Xero or MYOB) or you can use our simple manual entry system, which is built-in.
We provide and file the paperwork for all Company Law and IRD requirements – from Working for Families to Fringe Benefit Tax, to name but a few. A Chartered Accountant oversees everything, helping to minimize the amount owed on your tax bill.
Also, not only can you contact us whenever you like, you can ask your accountant anything you like, as often as you like without being charged anything extra!
As long we can answer your question then and there, there’s no extra charge, which means no more scary accounting bills at the end of the year. We give you peace of mind that you’re making the right decisions for your business.
If we need to go away and do detailed analysis to provide you with the best tailored advice, we will provide you with a quote upfront, so you know exactly what it will cost you.
Being online makes it simple, cost effective, convenient and efficient, and you have the freedom to update information whenever you like – you’re not restricted by the office hours of your typical accountant.
Beany allows you to store all your financial documents in one place, roll over common information from year-to-year, and stops you having to chase bits of paper around. We offer a service based on lower overhead costs – with these savings passed on to you!
We prepare high quality financial statements and tax returns as part of our pricing, and we provide this information direct to your personal Beany page. No more inefficient use of your time and money making unnecessary trips to see your accountant at their office!
Legal? Absolutely! New Zealand registered Chartered Accountants work for Beany and ensure all tax and legislative requirements are met.
Beany is a member of the Chartered Accountants of Australia and New Zealand and is reviewed by them periodically to ensure we meet best practice standards. We also make sure we meet their code of ethics ensuring:
- Professional Competence and Care
- Professional Behaviour
We take data security extremely seriously and use SSL encryption between your web browser and our servers, just like your online banking system does.
You will notice the “https” and padlock in your browser’s address bar. This tells you a secure connection is being used. Our data centre is right here in New Zealand and we take hourly backups of your data.
Yes, our Beany team of fully trained accountants work away in the background and their work is in turn fully reviewed and monitored by qualified Chartered Accountants, ensuring you are always getting the best possible level of advice. At Beany we take our professional accountancy responsibilities very seriously.
In order to provide you with the best possible price, we have removed all unnecessary overheads, including an office! You can however contact us at any time and we’ll arrange a call back at a time that suits you. This means you only deal with your online accountant when it works best for you, on 0800 755 333! Once you’ve signed up as a Beany customer you will interact with our friendly and helpful team to make sure everything is covered and all your questions are answered. You can talk to us just as you would a traditional accountant. The only difference is all communication will be done online, or on the telephone, where necessary. Check out our contact page.
Yes, we certainly do, we can provide advice on anything you would expect from a traditional accountant. Take a look at customer testimonials to get an idea of some of the advice we have provided.
Please send us an email or give us a call 0n 0800 755 300. Once we understand what you need to know, we will provide an email detailing the cost of the advice and what you are going to receive from Beany. This way there are no surprises!
Using Xero – an accounting system in the cloud – makes life simpler and easier for you and for us. It enables you to have most of your accounting tasks automated and our system will seamlessly be able to use the data from there, reducing our processing time. As a bonus, all your data will be held in the cloud so you can access it from anywhere.
You don’t have to be using Xero to use our online accounting services. If you are using a spreadsheet, piece of paper, or home-based accounting system (or keep your receipts in a shoe box) you will still be able to use our Beany solution. It is so easy.
If you are not currently using a cloud-based accounting system like Xero but would like to, just contact us and we will assist you with making the move. It is really that easy!
We aim to have your accounts done within 28 days of receiving all the information we require from you. Its so easy!