Hi,
Less than 9 weeks until Christmas!
The recent months have shown signs of some interest rate relief with the OCR dropping in October, which will bring some positive news to many. The last OCR announcement for the year will be on 26th November.
We thought we’d send an update with some items that might be of interest.
Unclaimed Money Search:
Unclaimed money is money left untouched by its owner, in organisations like banks, or with a person such as a solicitor. The length of time that passes before it becomes unclaimed money is generally 5 years. In certain cases, it can be less than 5 years. After the organisation, or person, has been unsuccessful in trying to find the owner, most unclaimed money is transferred to the Inland Revenue Department, the Public Trust or Treasury.
The Inland Revenue Department provides a service for the owners of unclaimed money. You can claim your unclaimed money either in myIR, through the IRD website, or by writing to the IRD.You can search for unclaimed money by name here:
IRD Compliance focus:
The IRD has advised us they are focussing on compliance. This includes visiting, phoning and texting taxpayers where there are overdue taxes, especially PAYE and GST. We have noticed a new practice where text messages are being sent. Please contact us should you receive anything and need assistance to manage overdue amounts.
IRD System Update:
The IRD has advised they are updating our tax and social policy system over Labour weekend. The myIR and phone services including self-service options, and gateway services will not be available from 5pm Friday 25 October 2024 through to 8am Tuesday 29 October 2024.
Tax payments:
Some upcoming dates to note:
29th October 2024: GST due for 2 monthly and 6 monthly returns ending 30 September 2024.
29th October 2024: Provisional tax is due for 6 monthly GST filers for periods ending 30 September 2024.
15th January 2025: GST due for 2 monthly returns ending 30 November 2024. Also, the 2nd instalment of provisional tax is due for March balance date taxpayers.
Xero plan changes:
Xero has created new plans – Ignite, Grow, Comprehensive and Ultimate and are no longer selling their previous plans – Starter, Standard and Premium. There is more information on the changes here: www.xero.com/nz/pricing-plans
Trust tax changes – reminder from our previous newsletter:
Following on from our last newsletter, as you know the trustee tax rate in trusts has increased from 33% to 39% effective 1st April 2024. The 39% tax rate applies to amounts retained as trustee income and not allocated to individual beneficiaries. Where income is allocated to beneficiaries, their individual tax rates apply.
Most trusts can allocate income to beneficiaries. However, where the beneficiary's individual income exceeds $180,000, income is taxed at 39%. Please get in touch if you are receiving significant dividends in your trust in the 2025 tax year, and your personal income exceeds $180,000, as there might be a need to consider paying 2025 provisional taxes.
Please get in touch if there is anything we can assist with. Michael, Anna and the team
Michael.paton@naca.co.nz 021595811
Anna.paton@naca.co.nz 021595112
Comments