Dear AuSAE Member,
Thought I would email you to let you know if there is any support in terms of education and content for newsletters etc we can provide to you and/or your members during this time please do not hesitate to contact me.
As you are more than likely aware, on Tuesday 17 March 2020 the NZ Government announced a Business Continuity Package to help those struggling with the economic impact of the COVID-19 coronavirus pandemic. One part of that package proposes to give Inland Revenue the ability to remit use of money interest (UOMI) for businesses or individuals who are unable to make their payments on time due to the impact of COVID-19.
In brief, this could apply for all payments due on or after 14 February 2020, and could be remitted for a maximum of two years past the date of enactment, but the actual length will depend on the circumstances of each business. These changes are contingent on legislation being passed.
It’s proposed that any business or individual that has been significantly affected by the COVID-19 outbreak could receive the remissions. Once legislation is passed Inland Revenue will create guidelines to help you establish whether a business or individual might be eligible.
To find our more please visit www.ird.govt.nz/Updates/News-Folder/tax-relief-coronavirus
If you and/or your members are struggling due to the impacts of COVID-19 coronavirus, we strongly encourage you to contact your tax professional to discuss how we might be able to help.
Our normal options for re-estimating provisional tax, setting up instalment arrangements, remitting late payment and filing penalties, and severe hardship debt write-offs are available. We encourage impacted businesses to take advantage of them.
The Government has also announced it will introduce legislation for four more tax changes to help businesses given the impact of COVID-19. They are:
- to increase the provisional tax threshold from $2,500 to $5,000
- to increase the small asset depreciation threshold from $500 to $1,000 – and to $5,000 for the 2020/21 tax year
- to allow depreciation on commercial and industrial buildings.
- Removing the hours test from the In-Work Tax Credit from 1 July 2020
These four changes are not proposed to be timebound, would start from the 2020/21 tax year, and apply to all businesses - not just those affected by COVID-19. You can find out more about them at https://www.ird.govt.nz/covid19
In terms of support , if you would like us to support you and your members through webinars , conference calls, produce content for newsletters etc please do not hesitate to contact me. Once legislation is passed we will be in a better position to provide guidance and certainty regarding the business continuity package although , as highlighted above, there is support available now and we do encourage impacted businesses to take advantage of them.
Anyway, thought I would reach out and let you know we are available to assist if you would like.
Business Transformation Account Manager – Small & Medium Enterprises