Friday, December 18, 2009  

Brady & Wollstein have now joined the WHK group

As of late 2009 Brady & Wollstein have now become part of the WHK group.

The same enthusiastic service as outlined on this site will continue with the significant extra benefits WHK can offer... more>>

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posted by Brady and Wollstein  # 2:02 PM

Friday, July 3, 2009  

June 2009 Newsletter

Greetings from us all here at Brady & Wollstein. Welcome to our June Newsletter.

Well our 2009 season of Returns has got off to a great start.

The statistics of returns filed is well ahead for now and the next I.R.D. target should be exceeded by at least 10%.

Your help in continuing to make appointments for your attendances helps us to allocate sufficient time to attend to your needs, and as well helps us with our work flow.

Remember too our office staff have access to our diaries and are very willing to make the appointment for you.

As usual we look forward to meeting up with you all and meeting your requirements as the year proceeds.

Provisional Taxes
Just a reminder that the new dates for the payments of Provisional taxes are as follows:

Balance Date
31 March
31 May
30 June

1st Payment
28 August
28 October
28 November

2nd Payment
15 January
28 February
28 March

3rd Payment
7 May
28 June
28 July

Depreciation
Whether to claim or not
The election not to claim depreciation is a frequent question to consider, especially in regard to rental properties. The consequences of a subsequent sale of an appreciating asset, such as a dwelling, can raise some tax issues best thought of at the start.
We usually discuss with you when we set these rental accounts up. If you wish to consider ceasing to claim then talk to us about it.

GST
Increase in threshold to GST Registration
Now that the threshold is increased to $60,000.00 of taxable supplies you may wish to consider deregistration. There are a few fish-hooks in this but it is worthy of consideration, for some it is free for others not so.
If you want to explore this possibility please contact us.

Time to Consider
Wills: Do you have a current will that you are happy with if you were to die now. If not see your legal advisors about it. There is nothing so alive as making a will.
Insurance: When did you last review your level of insurance covers and the policies you have. It is important to do this regularly. There is nothing so sad in a business, as one that has a disaster and there is inadequate cover.
In another life we ran the old S I M V Insurance agency (now A.M.I Insurance) through our office for many years. We saw some sad cases of under insurance especially in household covers.

A.C.C: 
Firstly, does your levy account come to us to be checked? If you are not you are in the minority. Many have been very grateful for this service we offer. Secondly, have you considered the enhanced cover of a “Cover plus Extra”, do you remember hearing about it, do you know how it works, do you know how it benefits?
We recommend it and are happy to explain it.

QUOTE OF THE DAY
“People are like stained-glass windows. They sparkle and shine when the sun is out, but when the darkness sets in their true beauty is revealed only if there is light from within.”

My Mean Mother
I had the meanest mother in the world! While other kids had lollies for breakfast, I had to eat cereal, egg and toast. While other kids had cans of drink and lollies for lunch, I had to have a sandwich.

As you can guess, my dinner was different from the other kids too- as well as food, we had to eat it at the table and not in front of the television!

My mother also insisted on knowing where we were at all times. You’d think we were on a chain gang or something. She had to know who our friends were, where we were going, and she even told us what time we had to be home.

I am ashamed to admit it, but my mother actually had the nerve to break child labour laws. She made us work!  We had to wash dishes, make our beds, and even learn how to cook.

That woman must have stayed awake at night just thinking up things for us kids to do. She always insisted that we tell the truth, the whole truth and nothing but the truth.

By the time we were teenagers, our whole life became even more unbearable. No tooting the car horn for the girls in the family to come running. She embarrassed us by insisting that the boys come to the door to get us.

I forgot to mention that most of our friends were allowed to date at the mature age of 12 or 13. Our old-fashioned mother refused to let us date before we were at least 15.

She really raised a bunch of squares. None of us kids were ever arrested for shoplifting or busted for dope. And who do we have to thank for this? – You’re right our mean mother.

Everyday we hear cries from both our people and politicians about what our country really needs.

What our country really needs is more mean mothers like mine!

Managed Funds
Just a reminder to regularly appraise the performance of your fund managers. The reports we see are frequently:

1. So detailed it is almost impossible to assess how your investment is going.
2. Or so brief it tells you nothing.
3. Yet the monitoring fees appear to swallow up a large part of the income even though the capital investment has dropped.

We are happy to appraise these funds for you if you wish.

More on Managed Funds
If you really want to do some reading beyond “The Consumer” reports in their magazine, you may wish to read Gareth Morgan’s latest book. “After the Panic.”
It is quite revealing and does not hold back. His views are very forthright.
My favourite quote from him is-his fund is just Gareth Morgan- “no smoke, no mirrors- If you don’t like his results you can in his words “pummel him”

Finance Companies
If you have had an investment with a finance company and they have compounded your interest back onto the investment, AND subsequently the company goes into receivership and you lose money, THEN you are able to claim the compounded interest as a tax deductible expense.
This presumes you returned the interest as income in the first place.
Please see us if this applies to you.

The External Question “why”
The following questions from Dick Hubbards Clipboard appeal to the writers’ sense of wonder

Why does the sun lighten our hair, but darken our skin?
Why is the man who invests all your money called a ‘Broker’?
Who tastes dog food when it has a ‘new and improved’ flavour?
Why do they call the airport ‘the terminal’ if flying is so safe?
Why are they called apartments when they are all stuck together?
Why isn’t there a mouse flavoured cat food?

In regard to the 3rd one, my eldest daughter did a dietician course in Wellington a few years back. As part of the course they visited a pet food factory. While observing the manufacturing process at the point with their guide, another employee came up and asked if the batch was the new blend. On receiving an affirmative reply he promptly scooped up a spoonful and tasted it to be sure it was correct much to the very mixed reaction of the course members.
The moral of the exercise - Food should always be tasted before it is served up to someone else.

FIVE MINUTE TEST
1) If you went to bed at 8 o’clock tonight and set the alarm to get up at 9 o’clock the next morning, how many hours sleep would this let you have?

2) How many birthdays does the average man have?

3) If you had only one match and entered a room in which there was a kerosene lamp, a gas ring and a fuel stove, what would you light first?

4) In how many months are there thirty days?

5) If the doctor gave you three pills and told you to take one every half hour, how long would they last?

6) A builder builds a house with 4 sides to it and it is rectangular in shape. Each side has a southerly aspect. A big bear came wondering by. What colour is the bear?

7) How far can a dog run into a forest?

8) I have in my hand two Australian coins with a total of 15c. One is not a five cent piece. Please remember this. What are the two coins?

9) Divide 30 by ∏ and add 10. What is the answer?

10) A farmer has seventeen sheep and all but nine die. How many sheep did he have left?

11) Take two apples from three apples and what do you have?

12) An archaeologist claims he found two coins dated 46BC. Could they be genuine?

13) A woman gives a beggar 20c. The woman is the beggar’s sister but the beggar is not the woman’s brother. How is this?

14) How many animals of each species did Moses take aboard the ark with him?

15) Is it legal in New Zealand for a man to marry his widow’s sister?

16) What word is misspelled in this test?

17) Why can’t a man living in Napier be buried west of Rotorua?

18) There are twenty socks in a bag- 10 red and 10 black. How many must I take out to be sure of getting a pair of one colour?


ANSWERS TO FIVE MINUTE QUIZ

1. 1 or 13 on a 24 hour clock.
2. One.
3. The match.
4. 11.
5. 1 Hour.
6. White.
7. Half way.
8. One is not a 5cent piece but the other is.
9. 70.
10. 9
11. 2 apples
12. No
13. They are sisters.
14. None, Noah did.
15. No- He is dead.
16. Misspelled.
17. He’s still living.
18. 3




BRADY & WOLLSTEIN
CHARTERED ACCOUNTANTS

Providers of all accounting, secretarial, taxation and company management. Consultant to all types of businesses, school, cultural, religious and sporting groups.

Including:
· Business administration, payment
of accounts and credit control.
· GST returns
· Payment of wages
· PAYE & FBT returns
· Monthly, Interim and Annual Accounts
· Taxation planning and advice
· Auditing account
· Gaming machine audits
· Administration
· Secretarial services
· Share registry
· Formation of companies
· Detailed analysis of Businesses and Farms
· Monthly debtors accounts
· WINZ, family assistance and child support advice

Family Trusts
The question of forming a family trust is still a common poser we receive. The key answer we give is “WHY DO YOU WANT TO FORM A FAMILY TRUST?”
The following are a series of reasons that you may consider justifies such a step

Protecting assets from business risk
Protecting your children’s inheritance from claims by their partners or business creditors
Providing for special family needs
Protecting assets in a second marriage/relationship situation and/or relationship breakdown
Preventing claims on your estate when you die
Protecting assets against the possible introduction of capital gains tax, death duties or succession taxes
Protecting against income and asset testing for, say, rest home charges
Providing funding for education costs for children and/or grandchildren


In any event it pays to discuss your motive with us before you finalise the trust.

posted by Brady and Wollstein  # 8:55 AM

Wednesday, April 1, 2009  

April 2009 Newsletter

Greetings to you all from all in the front offices of Wanbrow House. To all our friends who masquerade as clients we send you and yours and your employees, all the very best in these challenging times.

One of the ways of preserving liquidity is to only pay the taxes that are actually due. This is “accountant speak” for the earlier your accounts are prepared the sooner you know your tax liability for the past year and the next one.

Surprise, surprise, 31st March is now upon us...

Think about preparing your records promptly for us. Elsewhere in this newsletter are some hints on getting your records prepared.

Good luck as you face the challenges and we are happy to learn of your problems and may be able to help.

ACC
A quick quip – “If you don’t pay an ACC Levy it is almost certain you have no earnings related cover.”
Another quick item (well quickish). We have uncovered a discrepancy within our Income Returns software, where some partnership income is treated as ACCable regardless of the source. 
If we don’t already receive your ACC Levy accounts and you receive partnership income then we encourage you to refer them to us.

Family Trusts
Just a reminder that we need advice of and copies of the deed of any gifts made to Family Trusts.

Our Fees Account
If you wish to pay our account by Direct Debit, please let us know and we can arrange it.

Wages Records
By law, employers are required to keep accurate wages records. These are to include details of all holidays taken and sick pay and other entitled days off.

It is not only law but it is also a form of self protection. You never know when a very happy employee may require to see and perhaps challenge these records.

If you need help, just ask us.

1st April 2009
It may be commonly known as April Fools Day – but in 2009 it heralds heaps of tax changes.
They are briefly:
                                                                  Rate
- New tax rates - Income to $14,000 12.5%
- $14,001 to $48,000 21%
- $48,001 to $70,000 33%
- $70,001 up 38%

- Independent earner Tax Credit, as from 1st April 2009 eligible taxpayers earning between $24,000 and $44,000 will be entitled to an extra $10 each week. For those earning over $44,000 the tax credit decreases by 13 cents in the dollar. It is totally abated by $48,000.

To qualify you cannot be on any benefit or receive Working for Families (ask us for the full list). To obtain the tax credit you need to complete a new IR330. See your employer or see us. A self employed qualifier will receive it on their Annual Tax assessment.

- KiwiSaver alters. The compulsory employee contribution is reduced to 2%. As are employer contributions limited to 2%. Employers Tax credits and the $40 fee rebate are wiped.

- Provisional Taxes are no longer subject to a 5% uplift on the previous year.

- GST - The threshold for compulsory registration is up to $60,000.
- The threshold to file 6 monthly is up to $500,000.
- The threshold to compulsory file on an Invoice Basis is up to $2,000,000.

- PAYE - The threshold to compulsory return PAYE twice a month is up to $500,000 PAYE per year.

- Minimum Wage Rates - This goes up to $12.50.

Challenging Times
If the very worst situation occurs and you have to make an employee redundant there are very strict protocols that must be observed.

We have a very good summary of the steps that are very sensitive and helpful. Contact us if you would like a copy.

90-day Trial Period for Employees
On 12 December 2008 the Employees Relations Amendment Bill was passed. This made changes to the Employment Relations Act 2000. From 1 March 2009, employers who employ 19 or fewer employees will be able to employ new employees on a trial period of up to 90 calendar days.
What is a trial period?

An employer and employee can enter into an agreement that, for the specified and agreed number of days but no more than 90 calendar days, the employer can dismiss the employee without the employee being able to take a personal grievance for reasons of unjustified dismissal.

Low to Middle Income Families
You must be on a low-to-middle income to get the Community Services Card. The income limits for receiving the Community Services Card depend on your individual situation.

You may be able to get the card if you… and your yearly income (before tax) is…
Single – living with others $22,366 or less
Single – living alone $23,712 or less
Married, civil union or
de facto couple – no children $35,450 or less
Family of 2 $42,765 or less
Family of 3 $51,788 or less
Family of 4 $58,965 or less
Family of 5 $65,994 or less
Family of 6 $73,849 or less
For families of more than 6, the limit goes up another $6,920 for each extra person.

Provisional Tax Dates
The due dates are now:
31 March Taxpayers
First Instalment 28 August
Second Instalment 15 January
Third Instalment 7 May

30 June Taxpayers
First Instalment 28 November
Second Instalment 28 March
Third Instalment 28 July

31 May Taxpayers
First Instalment 28 October
Second Instalment 28 February
Third Instalment 28 June

Balance Date Reminders

Stocktake
This is an important exercise and it plays a vital role is assessing the health of your business. We urge you to do it close to the date.

If your stock is less than $10,000 the Inland Revenue Department do not require a stocktake. But we prefer you do.

Bad Debts
Write off in your March debtors work. Even if you keep a separate file and continue to chase them.

Fixed Assets
Have a check in your last Annual Accounts for the Fixed Assets Schedule to see if any should be deleted.

Threshold
Incidentally do you know the origin of the word Threshold?
Well in the day when people used straw or hay (known as thresh) on the dirt floor of their homes, they had a board at the bottom of the door frame to hold the “thresh” in. Hence the “Threshold”.

ACC Again
Your levy payments can be spread over three months with no extra charge. Just ask us and we can arrange it for you. A great service from ACC.

Motatapu Icebreaker Mountain Bike Race – 14 March 2009
Congratulations to Colin on his marked success in the sport section for his age group (a state secret) in this gruelling sub-alpine race. He finished in first place and had a margin of nearly half an hour over the second place. In fact he would have won the Elite section for his age group as well.
A great effort. We enjoyed the morning tea shout.

Dan was a single guy living at home with his father and working in the family business. When he found out he was going to inherit a fortune when his sickly father died, he decided he needed a wife with which to share his fortune.
One evening at an investment meeting he spotted the most beautiful woman he had ever seen.
Her natural beauty took his breath away. 'I may look like just an ordinary man,' he said to her, but in just a few years, my father will die, and I'll inherit $200 million.'
Impressed, the woman obtained his business card and three days later, she became his stepmother.
Women are so much better at financial planning than men.

Just a Few Need To Knows
1. If you form a Trust, please let us know and arrange for copies of the documents to come to us.
2. If you buy or sell land or other properties, please advise us.
3. If you change banks and are on Banklink, we need to know.
4. Your copy of the e-filed tax return we send you with the “Please sign and return” on it – we do really need these back.
5. Also the signed Company’s annual minutes and accounts.
6. And “ditto” for Trusts.

Scouting Award to Tony Brady
The office staff were thrilled to learn of the recent award of a Silver Tui award to Tony. Not only was this awarded to Tony to recognise his service over a long period of years to the scouting movement, but it also represented another chance to coerce Tony into providing a morning tea shout to celebrate!
The Silver Tui Award is the top scouting service award in New Zealand. The awarding of the Silver Tui is made to adults who have provided services of outstanding character to the scouting movement in New Zealand, and only a limited number of awards are made.
We are sure that clients will join the office staff in congratulating Tony on the receipt of this well deserved award.

Nuclear physics is much easier than tax law. It’s rational and always works the same way.
Jerold Rochwald

More ACC
As most of you know we prefer to receive your ACC levy accounts so we can check them for you before you pay them.
However one aspect the ACC have some “weird” policies on, is whether you are a full-time or a part-time self employed person. The official definition is if you work 30 hours or more a week on average you are full-time, if less you are part-time.
Please advise us if your status for ACC alters.

Tax Management New Zealand – Managing your Tax Dollars
Tax Management New Zealand are buyers, sellers and financiers of tax in New Zealand. TMNZ work with accountants to ensure maximum benefits from your tax dollar remains with you, not the tax man.

How do they do this?
TMNZ manage “use of money” interest rates for the overpayment and underpayment of taxes. They also finance tax payments so business owners can keep their cash flow for working capital. TMNZ are ‘tax poolers’.
Two services immediately relevant for you, our clients with upcoming Provisional and Terminal Tax payments, are taxPURCHASE and taxFINANCE.

Provisional Tax – pay it when you are ready!
taxFINANCE allows TMNZ to pay your provisional tax payments when they need to be paid. You then pay TMNZ when you are ready for as little as 7% funding rate, one third of the cost of borrowing on unsecured bank overdraft. To date TMNZ has approved 100% of the requests made for taxFINANCE and approval is given the same day of application.

Terminal Tax – up to 20% savings
taxPURCHASE provides an underpayment rate that represents a minimum savings of 20% on a business’s UOMI costs.
We can arrange for either taxFINANCE or taxPURCHASE. Should you be interested in using either tax financing options then please contact us and we will prepare a quotation to suit your requirements. Either option must be submitted for approval, to ensure the funds required are available.




New Zealand Superannuation
We recently assisted a client to apply for New Zealand Superannuation, and this task brought to our attention the strict requirements enforced by Work and Income New Zealand (WINZ) regarding these applications. A New Zealand resident qualifies to receive NZ Super when the age of 65 is reached, but in every case each person must apply prior to their 65th birthday to ensure payments commence from that day. There is no backdating of applications, and should an application not be approved until some time later then that initial period of super entitlement is lost.

Application for NZ Super must be made by completing the NZ Superannuation Application available from WINZ, and the following must also be provided:
- NZ birth certificate or a current NZ passport. An expired passport will not be accepted.
One other form of identification, e.g. drivers or firearms licence or a signed bank card. An additional form of identification is needed if this form of I.D. does not have a photo.
- Proof of name change, if applicable (e.g. marriage certificate for a female).
- An Inland Revenue letter/form with your IRD number.
- Proof of your bank account details e.g. deposit slip.

Should you have a partner then their birth certificate or passport plus proof of any name change must also be supplied.

The super application will not be approved until all the required details are supplied. In cases where any details need to be obtained, such as a copy of a birth certificate, you need to do so well before the arrival of your 65th birthday to ensure all is ready then and your receipt of NZ Super is not delayed. We suggest that the application should be completed and delivered to WINZ some weeks before your birthday, to allow time to provide any details that WINZ may require and to have all matters finalised before the birthday arrives. WINZ are very strict, and a late application could cost you a loss of super.

People are like stained-glass windows. They sparkle and shine when the sun is out,
but when the darkness sets in their true beauty is revealed only if there is light from within.
Elisabeth Kubler-Ross

If you prefer to have this newsletter mailed to you, or if you would like to be taken off the list for receiving this newsletter, please email helen@bradywollstein.co.nz or phone our office on 03 4347991.

posted by Brady and Wollstein  # 3:38 PM

Monday, January 19, 2009  

Welcome to you all and our new on-line newsletter

Welcome to our final newsletter articles for 2008.  Yes there is actually still news, after the 8th of November! We hope you had a good Christmas and New Year

posted by Brady and Wollstein  # 8:51 AM

Wednesday, December 10, 2008  

Insurance

When did you last review your insurances (including your domestic and personal insurance)? It’s vitally important to review them regularly. Situations change, values change but risks are always there.
For property, the lack of insurance is a calculable amount and you may elect to select a lower cover. At least in these circumstances your decision is a quantifiable risk, even if it is an unwise one.
BUT for liability claims the risk is not quantifiable, often it is an unseen one.  Often it is one beyond your reasonable control (yet you are still liable – or at least have to pay to defend your stance) and almost invariably for amounts that have lots of noughts in it.

These are the risks automatically covered by vehicle insurance, and house owners and household contents covers. Incidentally people flatting should insure their personal and household contents (even though they may be of low value) just to get the tenants liability insurance cover.
However it is for this business risk that you have to choose to hold Statutory Liability Insurance Cover. This covers liability for claims under many acts but the principal ones are Occupational Safety and Health (O.S.H.), Resource Management Act and Fair Trading Act. The cover meets all claims and legal costs but not court fines. Our opinion is that all businesses should have this cover, no excuses, no ifs, no buts. The situation of how claims against businesses under these polices are managed by the courts is another story that the writer hopes to address in another arena.

posted by Brady and Wollstein  # 8:47 AM

 

Bill Gates Advice to School Leavers

We feel it is appropriate to repeat an article from an earlier newsletter at this time when children are facing the world after school life.

In Bill Gates message about life for recent high school and college graduates, he lists 11 things they did not learn in school.  He talks about how feel-good, politically correct teachings created a full generation of kids with no concept of reality and how this concept set them up for failure in the real world.

Rule 1 Life is not fair – get used to it.

Rule 2 The world won't care about your self-esteem.  The world will expect you to accomplish something before you feel good about yourself.

Rule 3 You will not make 40,000 dollars a year right out of High School. You won't be a company vice president with a car and a cell phone until you earn both.

Rule 4 If you think your teacher is tough, wait until you get a boss.

Rule 5 Flipping burgers is not beneath your dignity. Your grandparents had a different word for flipping a burger.  They called it opportunity.

Rule 6 If you mess up, it’s not your parents fault, so don't whine about your mistakes, learn from them.

Rule 7 Before you were born, your parents weren't as boring as they are now.  They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you are.  So before you save the rain forest from the parasites of your parents' generation, try 'delousing' the closet in your own room.

Rule 8 Your school may have done away with winners and losers: but life has not, in some schools they have abolished failing grades, they'll give you as many times as you want to get the answer right.  This doesn't bear the slightest resemblance to anything in real life.

Rule 9 Life is not divided into semesters.  You don't get summers off and very few employers are interested in helping you find yourself.  Do that in your own time.

Rule 10 Television is not real life.  In real life people actually have to leave the coffee shop and go to jobs.

Rule 11 Be nice to nerds. Chances are you'll end up working for one.

posted by Brady and Wollstein  # 8:45 AM

 

Local Authority Rates Rebate

You can apply for a rates rebate if:

You had to pay rates for the property you were living in at the beginning of the rating year, 1 July 2008.

Your name is on the rates bill, or

You are the owner of an “owner-Occupier flat” and your name is not on the rates bill but you pay some of the rates, or

You have a legal ownership interest in the property and are responsible for paying the rates but your name is not on the rates bill

The total annual income (before tax) of you, your partner and any joint owners, is low.

How is the rebate worked out?

Your rebate will be worked out on your income, rates and the number of dependants. The income eligibility for a rebate is $21,180.00. However if your income exceeds this amount you could still be entitled to a rebate depending on the total costs of your rates and the number of dependants. Please refer to the application form or the Council for more information.

You CANNOT apply for a rebate if:

The property is a farm, or is used principally for commercial, industrial or business purposes; or

The property is a rental property; or

You have already applied for a rebate in the current rating year; or

You do not qualify as the legal ratepayer.

posted by Brady and Wollstein  # 8:44 AM

 

Wills and Enduring Powers of Attorney

It is very important for all persons to have a current will; to ensure that should some unfortunate event occur then their affairs will be dealt with as the deceased person would have wished.

A will should also be reviewed on a regular basis and updated as circumstances change. A new will is needed if you form a family trust. An existing will is cancelled should the person marry or enter into a civil union, but not by entering into a new relationship. Note also that on death is the only time debts can be forgiven without Gift Duty considerations.

Secondly Enduring Powers of Attorney are needed to appoint a person or persons to manage your personal care and property should you not be able to do so. A normal Power of Attorney becomes invalid should a person become mentally incompetent, whereas an Enduring Power of Attorney applies regardless of the grantor’s mental capacity.

We recommend that clients consider their estate planning programme when the will is reviewed. An often heard piece of advice is that good estate planning is when you die with enough money to pay your funeral account with $1.00 left over! Retaining all assets to death, to be distributed by your personal representatives (formerly called executors) after your death is not a good estate planning option.

posted by Brady and Wollstein  # 8:43 AM

 

Customer Service

At this time of year when the pressure goes on to most businesses, we feel the need to repeat this schedule from McDonalds.

McDonald’s Ten Commandments for customer treatment are:

1. The Customer is the most important person in our business.

2. The Customer is not dependent on us – we are dependent on the customer.

3. The Customer is not an interruption to our work, but the purpose of it.

4. The Customer does us an honour when calling on us.  We are not doing the customer a favour by serving him/her.

5. The Customer is part of our business, not an outsider.  The Customer is our guest.

6. The Customer is not a cold statistic, but flesh and blood: a human with feelings and emotions like our own.

7. The Customer is not someone to argue with or match wits with.

8. The Customer is one who brings us his/her wants.  Our job is to fill them.

9. The Customer is deserving of the most courteous and attentive treatment we can provide.

10. The Customer has the right to expect an employee to present a neat, clean appearance.

posted by Brady and Wollstein  # 8:41 AM

 

Land Sales

The rules are again under fire as the IRD seeks to widen the net to capture more sales through associated persons and by limiting the exceptions. The critical rule is what was your intention, when the land was purchased and do subsequent actions support that intention. However it appears that the associated persons rules may well negate this. So it is important to check with us to ensure of the best outcome for you, when a sale is contemplated.

Dan was a single guy living at home with his father and working in the family business. When he found out he was going to inherit a fortune when his sickly father died, he decided he needed a wife with which to share his fortune.

One evening at an investment meeting he spotted the most beautiful woman he had ever seen.
Her natural beauty took his breath away. 'I may look like just an ordinary man,' he said to her, but in just a few years, my father will die, and I'll inherit $200 million.'

Impressed, the woman obtained his business card and three days later, she became his stepmother.
Women are so much better at financial planning than men.

posted by Brady and Wollstein  # 8:41 AM

 

Business Structures

Clients in business have the option to organise their business under various types of business structures.  The usual structure is that of a Sole Trader i.e. Fred Dagg trading in his own name.
Other trading options available are:

Partnership - Both general and Limited

Company - Normal, qualifying or loss attributing qualifying

Trusts - Family or trading trusts

Each type of business structure has advantages and disadvantages, and it is a matter of looking at each clients details to decide which structure is best for that client. We have a Structure Diagnostic Report which we can complete, to decide on the best structure for a business.  

Any client who has doubts as to whether their existing structure is the best for their circumstances is asked to contact us to consider this matter. In some cases more than one structure may be required. For example assets such as property could be held in a trust while the business could trade in a company to take advantage of the limited liability available.  Private non-business assets e.g. home and holiday house should be kept in a separate trust to that holding business assets and property.

posted by Brady and Wollstein  # 8:39 AM

 

L.A.Q.C. Companies

If you have an L.A.Q.C. and it is used to own your own house, then it is likely that you have heard from the I.R.D. recently about its tax status. If you have, please contact us. If you fit the description and haven’t heard about it please contact us too.

posted by Brady and Wollstein  # 8:38 AM

 

ACC (again) ACC (again)

Yes we are on about it again.  WHY do we worry?  Well we see cases time and time again where clients effectively have no cover (or a very low cover) for a variety of reasons.  Mostly because of the first year in business or as a shareholder employee or because of one off low level of income. We believe in the ACC CoverPlus Extra cover for all self employed or shareholder employees.  This is an opinion expressed to us by the ACC road show and other ACC employees.  Even to the point that the standard cover should be abandoned completely in favour of the better cover.

Like insurance type expenses the benefits are hard to accept as essential.  But ACC is really just insuring your income stream in the event of a claim. Don’t appraise its value based on a few weeks off work – look at months or years off work and relying on welfare to maintain your standard of living and cover mortgages etc.

We are keen to expand the extent of ACC CoverPlus Extra among our clients.
Ring us and we will be happy to advise you.

P.S. Just 3 of ACC CoverPlus Extras attributes:

You choose your level cover

You don’t have to prove loss of income

You are covered until you return to work full-time

posted by Brady and Wollstein  # 8:38 AM

 

Provisional Taxes

With the lowering of income tax rates and amending thresholds the provisional taxyou were advised to pay prior to 30 September 2008 will now be automatically reduced to accommodate the lower composite tax rates.

Our advice to you for the 15th January 2009 and 5th May 2009 instalments will show the amended amounts.

posted by Brady and Wollstein  # 8:36 AM

 

Direct Crediting Through Bank Accounts

This practice is now quite well spread. It has many advantages in the quest to minimise the time and cost of administration.  No cheques, no sending off of cheques, no postages, ease of balancing bank account, no waiting on cheques to be presented, good credit records because payments occur on the day. Then of course your creditor gets plenty of benefits too.

We encourage you to use them.

posted by Brady and Wollstein  # 8:35 AM

 

Family Trusts

Thinking of forming one?

We have an excellent check list to help you decide if one is right for your needs.
Just give us a call

posted by Brady and Wollstein  # 8:32 AM

 

Direct Link Bank Facilities

We have recently entered into a direct link facility with our bank. This means that for a client who we regularly bill its members for, say power or rates or whatever, we can arrange with the members to direct debit their bank account for the amount due. There are safeguards in that the arrangement can be cancelled at anytime by the member and there is delay after the bill is sent before the direct debit is initiated. This means the member does not have to do anything to pay the account, except check they are happy with it. For the organisation it is less administration, no receipting, no banking and a easy record of the receipts received.

This is not new or unique but its application is being encouraged and widened by the banks. For our own accounts if any clients want to use the system to pay our fees accounts, then we will be happy to arrange this for you.

posted by Brady and Wollstein  # 8:31 AM

 

Charities commission [From their 5 November 2008 Newsletter]

As at the 3 November 2008 they had registered 15001 charities.

As at 3 November 2008 they were processing applications received about the 9 July 2008.

Annual Returns: The commission will send a reminder two months before the Annual Return is due.
Filing Fees: If your organisation has a gross income of more then $10,000 the fee for filing an annual return on paper is $75.00.  If filing online, the form is already partially completed for you, and the fee is less - $50.00.  If your organisation’s gross income is less then $10,000, filing your annual return is free, whether you file online or on paper.

posted by Brady and Wollstein  # 8:28 AM

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