News - the accounting income method -aim-

Business Tax Update November 2019

November Issue
Investment income – what’s changing in April 2020 - From 1 April 2020, Inland Revenue is making changes that will affect investment income payers and recipients. Investment income includes interest, dividends, PIE income, taxable M?ori authority distributions and royalties paid to non-residents. Do you know about the bright-line property tax rule? GST beta content available to review The Accounting income method (AIM) The Accounting Income Method (AIM) is the provisional tax option that makes paying tax easier. With AIM you will only need to pay provisional tax when you make a profit. AIM is generally available to businesses with turnover of less than $5million who use AIM-capable accounting software Employer deduction payments -All payments of employer deductions should be coded with the account type ‘DED’ Payroll returns - Please ensure all payroll returns filed electronically or manually have start and cease dates for all new or departing staff. Customers incorrectly using secondary tax codes - Some employees are using a higher tax rate, such as a secondary tax rate (ST code), to help offset tax bills based on other income they get. Law changes from 1 April 2019 mean this is no longer allowed if the income being taxed at the higher tax rate is their only source of PAYE income.
Read More