Frequently Asked Questions
What structure is best for me?
Sole Traders, Partnerships, Trusts and Companies - getting the best structure for your business is essential to taking the right first step. The most appropriate structure will depend on whether you are looking for simplicity, asset protection, limitation of liability and your specific situation. Please get in touch to discuss your circumstances to see what sort of structure works best for you.
How much does it cost?
We don't believe you should be paying for services you won't use. That's why our pricing will depend on the services that you need in your business whether it is just tax compliance, a business overview or a business advisor. We will tailor our services to your needs. Please feel free to get in touch for a complementary introduction where we can discuss a pricing package that works for you.
Do I need to register for GST?
You will need to register for GST if your taxable supplies exceed or expect to exceed $60,000 in the next year. But there are many circumstances where it is beneficial to register for GST even when you don't meet this threshold. Registering too late can result in expenses not being claimed and missing out on real cash. Feel free to get in touch to discuss GST for your business.
What is provisional tax?
Provisional tax is paid to the IRD in installments as an estimate of the tax you will owe for the current financial year. You will be required to pay provisional tax if your previous year's tax bill was more than $2,500. There are various methods that you can elect to use for calculating provisional tax including the new Accounting Income Method (AIM). But the important thing to note is that whichever provisional tax method you choose you will always end up paying the right amount of tax for the year. Feel free to contact us to discuss your provisional tax requirements.
What costs can I claim in my home?
Each year you are entitled to claim a % of your household costs that relate to working from home. These costs relate to utilites (power, internet, repairs, insurance) as well as rent (if renting) or mortgage interest & rates (if owned). The amount you can claim will depend on the office size as a % of the house.
Note: For the 2018 year the IRD is allowing a simplified approach whereby you can claim $41.10/sqm of the office space plus a share of rent or interest and rates.
When is my tax return due?
If you are not registered with a tax agent and wish to file your tax return, you have until 7 July.
Parallel is a registered tax agent which means that, in most circumstances, you will have a extra 9 months to complete your tax return as it is not due until 31 March the following year.