In April 2018, Inland Revenue is making changes to streamline tax for business.
AIM – the ‘Accounting Income Method’ – is a new ‘pay-as-you-go’ option for provisional tax. Restaurants with turnover under $5 million will be able to use approved accounting software to calculate their provisional tax based on current cashflow – and will pay provisional tax only when making a profit. As long as the business pays what the software says – on time and in full – there are no penalties or interest. AIM is simple and easy and will give restaurants peace of mind about their tax.
Employers will find it easier to submit PAYE information online, and to make corrections. Payroll managers will notice a new look and feel to the Inland Revenue website, and some slightly different processes.
Parliament is considering legislation so employers would submit PAYE information every payday rather than monthly. This would be voluntary from April 2018 and compulsory from 2019. Other proposals expected to become law include lowering the electronic filing threshold, so more employers would have to file PAYE information electronically.
If the law is passed, employers would be able to file returns directly from payroll software when the information is at hand, instead of holding on to it to submit later.
Restaurants will also be able to manage Fringe Benefit Tax online. There will be detailed information before April about what to expect from the changes.
Read more at www.ird.govt.nz