People News: We are sad to say goodbye to three valuable staff members. 

Keith Rea: Keith is retiring in March. He has worked at Candy Gillespie since he left school 52 years ago. Keith has certainly earned his retirement and we know he has a lot to look forward to with Jane, his children and grandchildren. We at Candy Gillespie deeply appreciate Keith's many years of loyal service and we know all our clients do too. We are currently working with Keith's clients to ensure they continue to receive the same great service that Keith has provided for all these years. 

Debbie Hornsey: Deb has worked for Candy Gillespie for almost 24 years. She joined us straight from school, had a break to raise her family, and then couldn't resist coming back. Deb has been great value in the office. Deb leaves us to further her career in the corporate world and we wish her the best. 

Latasha Tappin: Tash joined us nearly 9 years ago and qualified as a Chartered Accountant while working at Candy Gillespie. She leaves us to follow her dreams and pursue a career in the corporate world. We wish Tash all the best and we're proud of what she has achieved.

End of Financial Year: 31 March sees the end of the financial year for most businesses. Those businesses will receive a green questionnaire in the post. To accurately calculate your financial performance for the year, a snapshot of your position at balance date is required. When preparing your accounts we need to determine what you own and what you owe at balance date. This questionnaire is also your instruction to us to compile your financial statements and tax returns. We are required to keep it on file. Even if you think there is nothing to fill in, please sign and send it in. Scan and email it back if that's easier.

Tax Tips: As the financial year end approaches, here are some tax tips to think about:

Pre-pay expenses: Pre-paying for tax-deductible expenses before March 31 will help to reduce your tax bill. Some categories of business expenses can be pre-paid without any limitations e.g. stationery, postage, courier bags, and vehicle registration. Most other expense categories have limits but can still be claimed in advance. (See the Trial Balance Newsletter for more detail).

Repairs: If any business assets require repairs and maintenance, do it now so the expense can be claimed before year end.

Work in Progress: Review work in progress. Invoice it or write it off by balance date otherwise, you might be paying tax on income you haven't received.

Bad Debt: Bad debt deductions can only be claimed if the debt is actually written off prior to balance date. Make a decision on your aged debtors. Either call in the debt collectors or accept that it's not going to be paid and write it off.

Fixed Assets: Review your fixed asset register and decide whether any assets are no longer in use by the business. If they meet the write off criteria, a tax deduction will be allowed.

Bonuses and holiday pay: Amounts payable to staff can be claimed as a deduction for the 2021 financial year provided the full amount is paid to the employee within 63 days of balance date.

Trading stock: either dispose of obsolete stock or revalue it to the current market value.

Donations: The IRD provides a 33% rebate on cash donations paid to registered charities. Pay before 31 March to claim the rebate in the current year. Send your donation receipts in with your annual records and we will process your rebate claim. 

Tax update: 39% Tax Rate. From 1 April 2021 a new tax rate of 39% will apply to personal income in excess of $180,000. The top rate for resident withholding tax (RWT) paid on interest will also increase to 39%. There may be some tax planning options available to those individuals affected by this change, so talk to us.

Wages & Payroll: The Minimum wage rate increases to $20 per hour from 1 April. Jo Storey is our resident payroll expert and is here to help. If you are hiring new staff and you want wage calculations done, please provide us with all their payroll information as soon as possible. This will allow us time to get it set up before your new staff begin. Please don't wait until you've started employing them before asking for a wage calculation.

The government is currently considering changes to the holidays act. These include:

·         Increasing sick leave from 5 days to 10 days

·         Allowing staff to take bereavement leave and domestic violence leave from their first day

ACC: Cover Plus Extra (CPX) is a good option for self-employed people. CPX allows you to choose a level of ACC cover to meet your needs. If you're not already using CPX, call us to discuss your options. Those who already use CPX would have received notification regarding your cover for next year. If it's correct, it rolls over automatically. If not, complete the changes and send it back to ACC. You can set up an interest free instalment plan over 6 months.

Rental Property Changes: The Residential Tenancies Amendment Act (RTAA) is now in effect. Rent increases have been limited to once a year. Landlords are no longer able to remove a tenant without giving a reason. You are now expected to allow tenants to settle for longer and make minor alterations to the property to help them feel at home. To reduce risks, make sure you have a robust process in place to select the right tenant for your property.

It's important to put everything in writing. Make sure you have a signed tenancy agreement. Landlords are now required to keep thorough tenancy records and make them available to tenants or the Government upon request. Make sure you have a system to keep good records and all your paperwork is filled in correctly.

Trust Act 2019: A new Trust Act came into force in January which brings increased administration, disclosure and record keeping requirements for Trusts. If you have a Family Trust you should have heard from us or your solicitor by now about this. These are significant changes and do require your consideration. We have completed a review of all Trusts where we act as Independent Trustees. Due to the increased administration requirements we will begin charging an annual fee of $300 plus GST to Trusts for which we act as Professional Trustees.

Review your will, memorandum of wishes and other legal documents. A long standing client died recently and the latest will was dated in the 1980's. One of the nominated executors was already dead making the issue of probate somewhat delayed. This is a timely reminder that circumstances change over time and it's important to keep your important legal documents current.

Kiwisaver: With Term Deposit rates being so low, it's a great idea to maximise your Kiwisaver contributions before 30 June to be entitled to the $520 government tax credit. Make sure you're using the correct Kiwisaver PIR too. Remember, you can still use Kiwisaver if you're over 65.

Accounting Software: Around this time of year there is hype in the accounting software market. "Code your bank statements while you sit on the beach" the advertisers say. That sounds boring, even for accountants.

Candy Gillespie prides itself on our team of trained staff who are dedicated to efficiently process your records to ensure your various IRD returns are correct and on time. We are able to work with your software – Xero, MYOB or Cash Manager. We are Xero certified and can get a 25% discount for clients who pays their monthly Xero subscription through us. If you are considering accounting software please have a discussion with us first on the alternatives available.

Social Media: Follow our new Facebook page for important reminders, information and updates that might interest you, www.facebook.com/CandyGillespieCharteredAccountants