After 31 March, another tax cycle has been completed and the 2017 tax year has been laid to rest. The cycle of course starts again with the first of the 2018 tax returns already filed with Inland Revenue.
Inland Revenue has just completed their second major IT upgrade. Taxpayers logging in to myIR will notice that the ‘My GST’ section has changed to ‘My Business’. This section will be used to file, pay and amend GST returns, and to file employer monthly schedules.
Two other changes being promoted by Inland Revenue are pay-as-you-earn provisional tax and payday filing. The first uses the Accounting Income Method (AIM) to pay provisional tax throughout the year and requires AIM-capable software (currently MYOB, Reckon and Xero). The second involves reporting payroll information every payday instead of monthly, but does not become compulsory for another 12 months.
We are adopting a wait and see attitude to these two changes. To be eligible to use AIM, a taxpayer must elect to use it before their first payment date. Given that Xero users can only register via their accountant having Xero Tax Practice Manager Software, clients will have to include their accountant in the process if using Xero software. The existing methods of paying provisional tax (or purchasing tax via a tax pooling intermediary) remain in place and we recommend that you discuss with us any changes occurring in your business that would impact on profitability and therefore provisional tax obligations.
KCA has experienced a strong growth year but filed all income tax returns on time where information had been provided by the client before year end. We would like to thank our clients and staff for their wonderful support over the last year.
Servicing the Bay of Plenty, new clients looking for a friendly accountant that emphasises client service should come and visit Geoff for a free consultation.