Tax roundup to help you

If you have a Small Business Cashflow Loan, it’s likely that the five-year term is expiring this year. Most small businesses who have this loan took it out between May and July 2020.

You now need to pay the outstanding loan balance before the final repayment date to avoid unnecessary default interest.
 
Follow these steps:
 
1.    Log in to myIR and check how much you owe and your final repayment date.

2.    Repay your loan in full before it expires to avoid default interest charges of 13.88%.

Unable to repay in full?

If you are unable to repay the outstanding balance in full, you need to contact Inland Revenue to set up a repayment plan to avoid higher default interest being applied.  Having a repayment plan in place means the interest rate will only be 3%.

Find out more on IR’s website.

Are you a self-employed tradie or running a construction business? 

We know you’re good on the tools, but you also need to take your tax as seriously as your trade. 

Inland Revenue’s Tax Toolbox will help you understand:

•    how to file and pay income tax 
•    when to register for, file and pay GST  
•    what your obligations are if you’re an employer  
•    what expenses you can claim and how to keep good business records 
•    how to address any outstanding returns or debt.

If you provide short-stay accommodation, ride-sharing or food and beverage delivery services using an online marketplace, then you need to know how recent GST changes may affect you.

The changes came into effect from 1 April 2024, so that means that with the end of the tax year coming, you should make sure you are completing your 2025 income tax return correctly.

Inland Revenue has got updated guidance and factsheets to help you.

Do you file fringe benefit tax (FBT)? Fringe benefits, such as motor vehicles and gym memberships are subject to FBT. It’s important to accurately report and avoid common filing mistakes.

You should review the rules and rates occasionally to make sure you are:

•    calculating FBT correctly
•    applying the correct exemptions that your business is eligible for
•    using the best rate to suit your circumstances
•    filing the return on time and paying the right amount.

If you have made a mistake in your return, you can fix it in myIR. 

Read more about common mistakes.

Did you see our business.govt.nz March newsletter? There was a section about how employer superannuation contribution tax and fringe benefit tax thresholds changed from 1 April 2025. 

If they apply to you, you need to make changes to your payroll calculations.