Autumn Briefs

GST registration for part-time business

You do not have the right to continue to be registered for GST if your business is not being carried on continuously or regularly. Sometimes clients either take a salaried job, operating their business part-time, or drift into semi-retirement. They need to look at the amount of work they do to see whether they still comply with the “continuously or regularly” criteria. If they don’t, they need to deregister for GST and pay GST on the market value of any assets they retain.

Loans to your company

If you borrow money for your company, you should make sure it is the company that signs up for the loan. If the money is lent to you and just put in the company, then the interest is not tax deductible. It is possible to get around the problem, but to do so adds to your costs. There’s also the risk of Inland Revenue not agreeing with what you might do.

No FBT under scheme

Inland Revenue has approved a scheme as not being subject to Fringe Benefit Tax (FBT). WorkRide Ltd provides self-powered commuting vehicles to the employees of its customers. The employees agree to a temporary reduction in salary in return for the temporary lease of equipment, and the opportunity at the end of the lease to own it. IRD has approved the scheme starting
1 December 2023 and ending on 30 November 2026

CRM now for small businesses

CRM – or customer relationship management – software has largely been used only by large companies as a powerful sales efficiency tool.

But now CRM software is more cost-effective and easy to use for small businesses.

A CRM can help to improve service and sell more to existing customers, automate marketing and sales processes, better track and manage business performance, improve team communication and provide real-time information on mobile devices to your sales team.

One of the big benefits is in helping salespeople to provide quotes to potential customers more quickly. Many businesses miss out on sales because their quote is sent too late.

CRM software is mostly cloud-based, and solutions can be as complex or as simple as your business needs. Some of it is low cost or free, so search online for what suits you.

Family Trust shareholder – pay dividends now?

If your company shares are owned by your family trust, consider paying the maximum possible dividend before 31 March 2024. The income tax rate in the family trust will probably be increasing to 39% from 1 April 2024. Therefore, any dividend declared from that date onwards is going to incur an extra six cents in the dollar of tax. The law has not yet been passed, however the IRD recently released guidelines on what might constitute tax avoidance in terms of the trust rate moving to 39% so it would seem it is likely to happen

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