November 2014 Newsletter Articles.


Important Changes for NZ Domain Names.

As of 30th September 2014, the NZ Domain Name Commission has made second level domains - like the '.co' in '.co.nz' and the '.org' in '.org.nz' – optional so you can now register names with them, without them, or both.

For example, www.<yourdomainname>.co.nz could now be www.<yourdomainname>.nz

What does this mean for your domain name and website?

Essentially, if you don't claim your shorter '.nz' domain name before 1pm, 30 March 2015, anyone can claim it.

 

Tax Saving Tip.

Any car available for the private use and enjoyment of an employee or one of their relatives or associated persons is subject to Fringe Benefit Tax. So, if the company buys a car and makes it available to a shareholder who is also an employee of a company, a Fringe Benefit Tax liability arises. It is calculated based on the cost of the car, and sometimes the depreciated book value of the car. A low cost car generates a low tax.

Therefore, it makes no difference how much the car is used. The tax is the same whether the car travels 3000 km a year or 30,000 km per year. The more the car is used privately, the better deal you get. And the lower the value of the vehicle the better the deal.

 

Cashing up annual leave - some things you may not know

What are the rules when it comes to annual leave?

Employees can make a request to employers to cash in annual holidays, opting instead to take a lump sum payment rather than time away from work, but there are a few rules that need to be taken into consideration. The request must come from the employee and not the employer. Although the employee is entitled to leave, the employer can decline the request at its own discretion and does not need to give a reason for its decision. However, the fact that employers owe a duty of good faith to their employees suggests that an employer's response to a request should be reasonable. In addition, there is a limit to the amount of leave that can be converted to payment. By law, the employee can only exchange a maximum of one week annual leave for cash payment per annum. An employer is entitled to have a policy that it will not consider requests from employees in its business or in a particular section of its business.


Tax Invoices.

Tax invoices for petrol

Those little chits you receive when you buy petrol are not always tax invoices. It shows the date, how paid and records purchases and the amount however it is not clear the purchases were petrol and the document is certainly not a tax invoice. You must hold a tax invoice for purchases over $50. It will include the words "Tax Invoice" and the supplier's GST number as well as other data.

Tax invoices – make sure you have them all

If there is a GST inspection, the first thing the inspector will look for is tax invoices. Can you answer yes to these questions?     • Do you have a current tax invoice for your rent?
    • Do you always get a tax invoice when you buy postage stamps, costing more than $50 at one time?
    • Do you ever check for missing tax invoices?
For amounts in excess of $1000, do you make sure all the details are on the tax invoice? Do you know what these are?
Tax invoices for more than $1000 must show name and address of the buyer, name and GST registration number of the seller, the words "Tax Invoice" in a prominent place, quantity and description of goods or services supplied, amount charged plus GST or statement GST is included.
 

 

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