PrintEmail

Keeping records
Remember to keep records of your business transactions. Records include source documents (like invoices, receipts and bank statements) and books of account (like cashbooks, wagebooks and working papers). Good records help you prepare accurate tax returns and allow you to prove your figures - businesses can expect to be audited by Inland Revenue at some stage.

Income tax
All businesses need to file annual income tax returns and pay income tax on their net profit for the year. Most business income is taxable and most business expenses are deductible.

A tip: Ask us about paying provisional tax in your first year - it could save you interest.

Do you need to register for goods and services tax (GST)?
If you expect your annual turnover (gross income) to exceed $40,000 over the next 12 months you must register for GST. If you expect your annual turnover to be less than $40,000 you can voluntarily register for GST.

If you register for GST, you must charge GST on your supplies of goods and services to your customers. You must file GST returns with Inland Revenue. You pay Inland Revenue the GST you receive from your customers (less the GST you pay to your suppliers).

A tip: In many cases you can choose your return filing frequency and your GST accounting basis. Ask us to help you choose the options that are best for you (and your cashflow).

Do you need to register as an employer?
If you employ other people, you must register with Inland Revenue as an employer. Your responsibilities include deducting PAYE from your employees' wages and paying it to Inland Revenue. You may also be liable for fringe benefit tax (FBT). When you register, Inland Revenue will send you more information.

Remembering your due dates the easy way
Inland Revenue has a "Tax due date calculator" on their website that can produce a calendar, customised to your business, that sets out when you need to file your returns and pay your taxes. Why not print out a calendar and keep it handy?

Filing your returns the easy way
Did you know you can file your returns electronically?

Keeping your business and private accounts separate
We suggest you have three bank accounts:

1. A business account - for business income and expenses
2. A private account - for personal, non-business use
3. A tax account - for regular deposits so you can pay your tax when it's due.