Blog

TAX BRIEFS 17 Aug 2015

Cash back

Most people get their air points on personal purchases. However, some of us are in business and we like to slip in a business purchase when we can because we know IRD does not tax air points. What about the new “cash back” scheme? It’s great news for those who don’t want to fly. You can use it to repay your mortgage or how you like. However, if you’re in business, we think “cash back” is taxable income where it results from business purchases.

 

Losses for R&D

A Bill is proposing “cash out” losses for research and development. The rules are aimed at start-up companies. Claim 28% of tax losses from R&D with upper limits only. IRD provides a tax credit. It operates as an interest-free loan. The company must have a high proportion of wages. The Bill rules out certain activities.

 

Keep tax details

People who don’t have to put in tax returns often overpay their tax. They are not allowed to put in just one tax return when they know they are owed money. They have to put in tax returns for four years. Advise your staff to keep all their tax stuff for a minimum of four years, just in case they need it. They can check online at the IRD website to see if it looks as though they are owed money.

 

Forestry Grant Scheme

A total of $22 million was allocated in this year’s Budget for new forestry planting. If a grant could help you, or someone you know, it might pay to make some enquiries. The Budget didn't indicate who would benefit from the scheme, but it’s worth investigating.

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