October 2021 Newsletter

It has been a difficult few months for business following the level 4 lockdown in August and the continuation of restrictions in both Auckland and Waikato. The inability of people being able to move from these areas has had a detrimental effect on local businesses, especially those in the hospitality and retail industries.

Affected businesses can qualify for the wage subsidy scheme if they expect a 40% drop in revenue. The scheme opens in two week time slots with the sixth August 2021 subsidy now open. The subsidy for each two weeks is a lump sum of $600 per week for each full time employee and $359 per week for each part time employee(less than 20 hours per week).

The second subsidy available is the Resurgence Support Payment (RSP) designed to help businesses cover wages and fixed costs if they have experienced a 30% drop in revenue over a consecutive 7 day period. The subsidy is $1,500 per business plus $400 per full time employee, which means that a sole trader will receive a payment of $1,900. However, the amount received does include GST. The RSP schemes are still open for the periods 17 August, 8 September, 1 October and 22 October but applications for the four schemes will close on 1 December.

Inland Revenue has now completed their 4 year upgrade of their computer systems and many of you will have noticed a different look on their website when you are signing into myIR. Inland Revenue now receives data throughout the year from employers, financial institutions and companies paying dividends, and therefore will be able to auto calc taxpayers income tax returns if your only income is from these sources.

If you have any queries over whether these changes affect you, please don’t hesitate to get in touch with our office.