Help us reduce your tax bill!

A 3-in-one blog!

We’re covering the Beany questionnaire, some tax tips, and a brief look at changes in 2022 laws which could impact your tax bill.

Submitting
Year-end tips to reduce tax
Rental properties
Airbnb
Crypto-currency
After submitting

Submitting your Beany questionnaire

Take your time when providing your responses throughout the  Beany questionnaire – detailed explanations and attachments will probably reduce the number of our follow-up questions! Once you’ve answered all of the questions, you need to submit the information to Beany. Click on the button on the top right of your screen.

All questions for all organisations need to be completed before submitting – we cannot start working on your financial statements unless all organisations are completed and you click on “Send to accountant”

We need all organisations submitted before we start – this ensures changes in one organisation can immediately be recorded or updated in the other. For example – changes to profit would require changes in the individual tax return; an interest adjustment in one company may need to be adjusted in the other; and so on.

Submitting the information triggers activity on our side, and we can start preparing your financial statements.

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Year-end tips to reduce tax

Could any of the tips below reduce your tax bill?

Rental properties

In March 2021, the government announced significant (and unexpected) changes for the deductibility of interest on rental property loans.

What we need
  • The loan summary from the bank – this will show the principal and interest paid during the year ended 31 March 2022.
  • If you purchased a rental property and/or ‘converted’ your family home to a rental property, on or after 27 March 2021:
    • Signed sale and purchase agreement
    • Settlement statement from the solicitor
    • A copy of the property’s code of compliance certificate if it was issued on or after 27 March 2020 – even if you are the second or subsequent property owner (your solicitor should have this)
Why we need it

The tax treatment of interest paid on the property loan now depends on the date the property was purchased, and whether it was a new build or not. The information you provide will make sure that the maximum permitted interest is claimed.

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Airbnb

If you receive any income from short term rental (the most common being Airbnb), you need to pay tax on this income. Expenses can be deducted from the income, but there are some pretty complex rules and calculations!

What we need
  • If you have a property used solely for Airbnb purposes, and not used privately (or by family and friends), and rented at market rates, then great! Ideally, you’d have a bank feed going into your Xero file, but if not, we’ll need a summary of income and expenses from your bank statements.
  • If your situation isn’t as outlined above, we’ll ask about your specific situation and ask for additional material. Rather than go through everything (and there’s a lot!), take a look at our Airbnb blog which has the reasoning and some of the calculations in the section ‘Income tax’.
Why we need it

Your net income from Airbnb operations needs to be included in your tax return. This is calculated by taking the income (including any ‘deemed income’) and deducting (a portion of) expenses associated with that income.

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Crypto-currency

What we need

A summary of your crypto-currency transactions.

Why we need it

There has been a significant increase in people holding and ‘trading’ cryptocurrency. Inland Revenue has recognised that many transactions, even if minor, may not be declared as income.

This is a seriously complex topic. If you’re impacted (or likely to be impacted), we suggest you read our blog here.

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After submitting

Another reminder…

All questions for all organisations  need to be completed before submitting – we cannot start working on your financial statements unless all organisations are completed and you click on “Send to accountant”

Once you’ve submitted your questionnaire, it’s our hands. We aim to complete our work within four weeks after receiving all information. You can expect additional questions from us throughout our process to get a better understanding of a transaction.

Your Beany accountant will send out draft accounts and tax returns for you to review and set up a meeting to discuss the figures and answer any questions you may have. Once you’re OK with the numbers, we’ll provide you with a final set of financial statements and file the tax returns with the Inland Revenue after receiving your approval.

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We want the process of preparing your financial statements to be quick and efficient. Providing information promptly, via our questionnaire and to your accountant, allows us to prepare your financial statements, and determine your tax position so you can plan for payment.

You can contact our friendly Support team at any time to help you prepare and submit the questionnaire.

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