Our offices are all open for normal business hours Monday through Friday.

Our accounting, tax, audit and business advisory work continues as normal. All client work will continue to be completed to deadline and to our customary high standards – it is business as usual.

Under Alert Level 1 we are able to conduct client meetings face-to-face, or these can be held via phone or video if you prefer.

If you or your business is experiencing financial difficulty as a result of COVID-19, please contact our Directors for assistance. We can provide financial expertise and assistance to clients and non-clients who are being adversely affected by the pandemic.

We’re here to help you and your business with the impact of COVID-19. Here are the latest financial updates and advice.

Wage Subsidies

A wage subsidy extension will be available for employers who continue to be significantly impacted by the COVID-19 crisis.

Wage Subsidy: Cannot Pay Employees More Than Usual Wage

Under the wage subsidy scheme, you cannot pay an employee more than their usual wage.

The IRD strongly recommends that where possible, employers pass the wage subsidy amount to employees as part of their normal pay cycle rather than in one lump sum.

Wage Subsidy Rule Change For Closed Businesses

There is good news for businesses that have closed or drastically reduced staff hours as the government has made adjustments to the wage subsidy requirements.

Work and Income have published answers to some frequently asked questions about the wage subsidy, clarifying issues regarding multiple applications, employer obligations, shareholder-employees, partnerships, self-employed and more.

Wage Subsidies: Developments

Clarification of the tax treatment of the wage subsidies, who can apply, and a working example.

The Government has announced that the COVID-19 leave payments and wage subsidies will not include any GST.

New Zealand Business Numbers (NZBN)

In order to apply for the COVID-19 wage subsidy, you will need to have a New Zealand Business Number (NZBN).

Assistance in the form of flat-rate wage subsidies is available for employers to help retain employees and alleviate cash flow challenges.

Tax

IRD has issued a working from home determination for employers who are paying employees working from home costs during the COVID-19 crisis.

COVID-19 Implications On GST

COVID-19 has potential GST implications if supplies have been cancelled or there is a change in the use of an asset.

IRD will be able to use their discretion to provide extensions to statutory tax filing and payment deadlines during the COVID-19 crisis.

Tax Loss Carry Backs

There are proposed new temporary rules for tax loss carry backs if you believe your business is forecast to make a loss.

The IRD has not made any concessions to the FBT rules for motor vehicles during lock down.

Contacting IRD

IRD advise that the best way to contact them is via myIR.

We strongly advise doing all of your banking, including making tax payments, online. However, selected Westpac branches are open for strictly limited hours on Wednesdays.

COVID-19 Tax Relief

There are a number of options available to take the pressure off meeting your tax payments – we recommend contacting IRD as soon as possible.

The government’s relief package targets business tax assistance, including increases to the instant asset write-off and increasing the provisional tax threshold.

Research And Development Tax Credits

It is proposed to bring the application date of broader refundability for the R&D tax credit forward by one year.

Homeowners

Auckland Council is offering ratepayers an extension on instalment four of their rates.

Financial Support For Homeowners And Businesses

The government, retail banks and Reserve Bank have developed a financial support package for homeowners and businesses.

Government Relief Package

Relief Packages For Farmers

Two main options for relief packages for farmers are the wage subsidy extension and short term loans.

SMEs may be eligible for a one-off interest-free loan if they have been adversely affected by COVID-19.

COVID-19 Government Relief Package: Income Support

Income support assistance under the government’s relief package includes a weekly increase to all main benefits from 1st April 2020.

Leave payment assistance is available for employers who have workers/contractors required to self-isolate.

COVID-19 Government Relief Package: Redeployment Package

The government’s relief package includes redeployment funds to help with employee training in industries not affected by COVID-19.