You might’ve noticed we always try and add a little light-heartedness and hopefully a smile to our mailers but right now that doesn’t seem appropriate. We know many of you are dreading the upcoming tax bills (due 7-Apr-20 and 7-May-20) so we wanted to give you a care-package of sorts, which summarises all your options in one place. Hopefully, you’ll find an option below which works for you (click page 2 below).
One of the best things about being an accountant (yes there are some) is the ability to get up close and personal with some of the best businesses on the planet. What’s not so great is being a messenger for the IRD. Early in my career, I had an incredibly uncomfortable meeting with an elderly gent who just wouldn’t believe it was illegal to claim his glasses and hearing aid, even though he needed them to do his job. It was quite the battle, I can tell you, so instead of boring him with legislation I told him about the court case where a personal trainer was sentenced, to home detention, for claiming running shoes and that even plain clothes police were taxed on their clothing allowance.
Now, I’m not saying it’s fair. Personally, I’m on your side but is there a way around these laws? The answer is advertising. I don’t know how you feel about having your business branding plastered all over your designer jeans but it’s one way to make them tax deductible. Without advertising, most clothes fail under the scrutiny of a ‘brown-trousered’ tax investigator (unless they’re uniforms or health and safety wear). We’d hate you to get caught out so why not quizz yourself to see if you can pick what’s deductible below?
“Life, as a business owner, isn’t perfect but your outfit can be”
______________________________ www.boutiquefinancial.com _______________________________
Boutique Financial Chartered Accountants & Business Commentators
Copyright © 2017 Boutique Financial Limited Chartered Accountants Auckland All Rights Reserved. This publication must be read in accordance with the attached disclaimer and does not provide an exhaustive statement of tax law.
Have you ever tried to read a volume of tax legislation? It’s like a Twistaplot where the ending is always no. Even seasoned law students are regularly horrified by how tough the tax paper is at Otago University. Amusing then, isn’t it, that your average tom, dick and harry thinks tax is easy and that telling a darn good story will let them claim whatever they like. Personally I love a great story but have you ever tried telling a tearjerker to a computer? Essentially the IRD is one large computer system chock a block with tax law, devoid of human emotion and logic. So no matter how touching (or delusional) your story may be, if it doesn’t fit neatly into a box at the IRD, the computer will inevitably say no.
With that in mind, we’ve put together a selection of our all time favourite “doozy” stories below (which have absolutely no regard for tax law whatsoever but make for more amusing reading than tax compliant tales). Are you guilty of these financial fibs?
There’s a business for sale, down the road from our accounting firm, claiming its profits exceed two million. Interestingly, buyers aren’t lining up. Why? Because the asking price is based on a multiple-of-earnings valuation. Most Accountants will lecture you this is how businesses must be valued and it’s a perfectly legit approach but absolutely useless if there aren’t any buyers. In reality, your business (like your home) is only worth what someone’s willing to pay for it.
I’m no mentalist, that’s for sure, but there’s one question that every so often someone, new to business, asks which fills me with hope. Why? Because that one question is generally a reliable sign they’re going to do well in business. So what is that question?
Happy new year and here’s hoping it’s another good one because despite all the gloomy economic predictions, for the financial year just gone, many of our monthly-clients experienced extremely impressive levels of growth. Fingers crossed those of you on our once-a-year plan have done just as well. To find out precisely how well you’ve done, now’s the time to pull together your end of year records and get them into us. Continue reading What do I need to give my Accountant
Did you happen to notice those sneaky little questions on your Census form about Trusts? It’s a sure sign that the Government is now ramping up its interest in Family Trusts (which you might recall, we predicted over two years ago). So, what does this mean for you? It means getting your Trust paperwork absolutely perfect to ensure that your Trust provides the protection you set it up for. Otherwise, you could be in for a rude (and expensive) shock. To help you get started, we’ve attached links to some of our most popular articles about running family trusts properly. Enjoy! Continue reading Family Trusts under fire