CLIENT NEWSLETTER – AUTUMN 2016
In each article below we have given a short summary of the topic so if you would like to read more please click on the link to our website for the full article and newsletter.
Brent joined McIsaacs about 12 months ago from his previous position as Business Services Principal with a major International firm of Chartered Accountants. Brent has over 30 years of experience as a Chartered Accountant and his work with a wide variety of clients means he brings with him an invaluable background and experience with business and planning. His services assists clients with their regular reporting requirements, business development plans, strategic planning, budgeting and monthly financial reporting including taxation and business advice. Brent has an existing large group of clients and has brought with him a number of qualified and experienced accountants to assist the firm with processing.
Avoid tax evasion
Tax avoidance and tax evasion are technical terms, but it helps if you understand the difference. Tax avoidance is working out a scheme which reduces the tax you pay. Some schemes are acceptable and others aren't. The IRD uses a test: "Was the scheme something which would have been contemplated by Parliament when it made the law?"
Tax evasion is hiding income or creating artificial expenditure or similar acts, which are dishonest and therefore illegal. Get caught and you could go to gaol.
Cloud based services
Over the last 8 years we have progressively been shifting our computer records from 'On-site PC' based to 'The Cloud'. This (the Cloud) means that all our important data files are stored securely on a remote server provided by our IT Provider and all files are backed up regularly.
From 1st April 2016 there will be changes to way we want you supply us with documents and files and the way we communicate queries to you. Please read the following article to assist with implementing this new system.
Tax on living expenses
Did you know you're never taxed on the money you take out of your business for living expenses?
This applies even if your business is operated through a company. Therefore, it doesn't matter how much or how little you take out; it won't affect the tax you have to pay.
The sudden drop in the New Zealand dollar will increase the value of money held in overseas bank accounts or overseas fixed interest investments. Most investors are what is termed a "cash basis person". This is someone (including a company or trust) who, roughly speaking, doesn't have more than a million dollars of money owing to them and by them, in total. You add the two together. There are other conditions but we are leaving them out to make this article readable.
Personal Property Security could save your bacon
If your business is a company, you've probably had to give a personal guarantee to your bank and maybe to some suppliers, too. If your business runs into trouble, you're going to have to find personal money to pay off those debts.
Write off those bad debts
Review your debtors now. If you think you're not going to be paid, write off the amount. Don't delay beyond balance date, because you can't backdate a write-off.
Following a career of over 50 years in commerce, software development and public practice accountancy, Roger will retire as a Director of McIsaacs on 31st March 2016.
Roger will remain with the firm for an indefinite period as a Consultant and will continue to provide Business Advisory Services for a number of clients.
During the last 8 years, while Roger has been a Director of McIsaacs, the number of clients has increased 4 fold. He was instrumental in converting to Cloud Computing Systems which along with staff training provided in conjunction with the other Directors has seen a significant improvement in the efficiency, quality and capability of accounting, tax and business advisory services provided by the firm.
Along with his wife Barbara, Roger has travel plans to visit family and grandchildren in the UK and he will work Online from London for 2- 3 months during the next 12 months.
The above E-newsletter notes and the related articles on our web site are of a general nature and therefore we urge clients who may be affected by these changes to contact us to discuss your specific circumstances before making any changes or drawing conclusions.
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