What tax relief options are available?
Is your business still facing the consequences of COVID-19 – even in level one?
Well, look no further… IRD has provided us with some tax relief and income assistance if your business has had a major drop in revenue over the past few months.
If you feel as though you are struggling to pay your tax, IRD can help you set up an instalment arrangement to assist you in paying your outstanding tax. There is also the option to apply for a write-off if you have endured some serious hardship in your business and know you will struggle to pay the full amount. It is also handy to note that if you are granted tax relief payments due to business hardship and you have losses to carry forward, those losses will be reduced in proportion to the amount written off.
Although extensions aren’t available for GST and PAYE returns, you can apply for extensions regarding filling dates from some income tax. You could grab yourself a certificate of exemption if you receive schedular payments and are involved in contract work. There are some circumstances that will make you applicable for the certificate, such as being a New Zealand tax resident, are in a business, have a good record of filing your tax returns plus paying tax, and receive schedular payments from a payer other than a labour-hire business under a labour-hire arrangement.
You could also face a reduced tax rate if you’re receiving a salary or wage and have a loss to carry forward. IRD can also support you if you are having trouble with paying child support payments, Families Tax Credits, as well as paid parental leave.
Be sure to have a chat with one of our team today to discuss how we can help you with these matters on 04 974 5056.