Newsletter – 01 February 2022

Already February 1st today, and 2022 is well underway.  We have been fortunate with the summer holiday weather, and we hope you have had a chance to make the most of the summer.

Looking forward to this year, we consider it time for an update on our communications.

Current COVID Community Setting:
Under the traffic light “Red” status, businesses like ours are recommended to work from home if possible.  While we returned a skeleton staff to the office late last year, we have decided to take the following actions for at least the next two weeks, and will review this in mid-February:

  • As for much of the past few months, our business continues to operate remotely, with full phone and computer functionality, and Zoom online meetings.  Our premises are not officially “open”.
  • We have installed a secure drop box behind the back door to the office; if you wish to use it, please do so, and contact one of the team to let us know if you have left or are leaving documents in the drop box.
  • If you require documents to be delivered to you, we are pleased to accommodate this.
  • Some of the team may be working on site.  Once the office premises are officially open again, we ask you to respect mask and vaccine recommendations for the current COVID settings (whatever setting we are at).
  • On a lighter note, those of you who work closely with Taylor at our office may be aware that she is currently on maternity leave.  The rest of the team will cover her work until she returns from leave later in the year.  We will advise you soon of who will be your main point of contact.
  • If you have any questions or concerns, please contact Angela or Barbara to discuss.

Government Support for Business:
Unless we return to a form of lockdown, there will be no additional financial support for business.

The current support available extends to:

  • The Small Business Cashflow (loan) Scheme, administered by Inland Revenue, continues.  We note that the first of these loans, allocated in 2020, will start to attract interest in the two-year anniversary of the funds being paid out, if the loans are not repaid in full by that date.  Interest charges will backdate to the date of the advance.  However, for businesses which have either repaid, or not taken out, loans, new loans are available under this scheme.  Details are at this link: https://www.ird.govt.nz/covid-19/business-and-organisations/sbcs
  • Two schemes remain to cover some of the cost of funding self-employed or staff who are either sick with COVID, or isolating for various reasons.  These schemes are the COVID-19 Short-Term Absence Payment for employees who cannot work form home and either they or their family members are required to isolate awaiting test results, and the COVID-19 Leave Support Scheme for employees who are either sick or have to be absent from work due to a number of COVID circumstances.  Details of these two schemes are at this link: https://covid19.govt.nz/traffic-lights/resources-for-businesses/covid-19-financial-support-tool-2/ with a click-through to applications.  You are also welcome to contact our office for assistance if either of these may apply to you. 
  • If you are genuinely unable to make full payment of taxes (including GST, PAYE, income tax, and other revenues) because of the impact of COVID on your business, you are able to advise Inland Revenue, and obtain full remission of penalties and interest on the late payments.  You will need to contact our office to assist.  

And a note about Inland Revenue in 2022:
Inland Revenue have advised that they will be reviewing the government funding made available through wages subsidies and the resurgence payments.  If you have made a claim, expect a call or email looking for proof of your eligibility.

We are also noticing a general tightening up in their attitudes to taxpayers for anything not COVID-19 related, so be aware of this.

If you have Audit Shield insurance cover with us, remember costs of inquiries from Inland Revenue will be covered by this insurance.  We note however this does not apply to COVID-related government subsidies, only to returns filed with IR.

We expect more audit activity from Inland Revenue in the coming year, as the effect of the increased top tax rates start to flow through.  They have also imposed a requirement for  trusts to supply significantly more information with income tax returns from 2022; watch this space for more details.