Please find below some information that will provide some more clarity regarding the Covid support packages that will be available:
The government has announced the Wage Subsidy Scheme is in place again – we've included more information on this below. If you have any questions please do get in touch. We wish you and your family members all the best, and understand this is a difficult time for everyone.
With the nationwide increase to Alert Level 4 this week, various government support packages have been activated. The criteria for each support package varies and should be reviewed carefully.
The familiar Wage Subsidy has come back, with a few changes since it was last used in February. Key things to note are:
Eligible employers throughout New Zealand can apply for the Wage Subsidy if they expect a loss of 40 percent of revenue as a result of the Alert Level change.
The Wage Subsidy has increased to $600 per week per full time employee and $359 per week per part time employee.
- Applications for the Wage Subsidy open on Friday 20 August with the first payments expected three days following. Further information about how to apply can be found here.
The Wage Subsidy will be paid as a two-week lump sum.
The government's press release did not indicate any change to the requirement to make reasonable efforts to pay 80% of the wages and salaries of staff members, but we assume this continues to be the case as before.
We expect a high trust model will be implemented as before, but note businesses who expected a loss of 40 percent of revenue, but did not have this eventuate have faced pressure to make repayment of the subsidy. In addition, we expect that further payments might be available should the heightened alert level remain for longer than two weeks.
Resurgence Support Payment
The Resurgence Support Payment is back for a fourth round. Key things to note are:
Eligible businesses throughout New Zealand can apply for the Resurgence Support Payment if they incur a loss of 30 percent of revenue as a result of the Alert Level change.
- The Resurgence Support Payment continues to be $1,500 plus $400 per full-time equivalent employee, up to a maximum of 50 full-time employees (so a maximum payment of $21,500).
Inland Revenue are yet to advise when applications will be open.
- More details about how to apply for the RSP are found here at the IRD.
This is the information we are aware of to date that we are passing onto you. As at 18 August 2021, there was limited guidance available beyond the Minister of Finance's press release. We expect the Ministry of Social Development and Inland Revenue will provide further guidance in coming days, so keep a watchful eye on the media for this.
Tax Payments Due
If you are a Provisional Tax payer or are registered for GST, please remember that payments are due by August 28th.
If due to Covid related business issues you will struggle to meet your payment obligations, please notify the IRD via secure mail in your MyIR login and then pay amounts as soon as you are able to afterwards. You may also like to contact the IRD to set up an instalment arrangement. See here for more details
Also please let us know if you are struggling to make your Income Tax payments as there may be the ability to use tax pooling to make the payment at a later date. Tax pooling is an IRD approved service that helps businesses make the right tax payments at the right time. So instead of paying IRD directly, taxpayers pay into the tax pool when it suits them and an intermediary makes payments to IRD on their behalf.
If you have any questions, comments, or suggestions please don't hesitate to contact us at any time.
With best wishes,
Luke Canton, Helen Canton, Veronica Griffin, Sarah Harrild & Philippa Muller
Flashpoint Accounting Ltd
28th August - GST due date for the June/July period.
28th August - Provisional Tax due date for Provisional tax. You should have recently received a notice with details, if you are unsure please contact us asap. Please ensure you use the correct tax period (31/3/2022) and tax type (Inc) as if you accidently miss this then future notices may be affected.
If you are unsure if you have a tax payment to make please get in touch.
For a full list of tax related important dates please see the resources page on our website More....