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Tax Credit for Donations

Did you know that if you’ve made donations of money to a donee organisation, you may be able to claim a tax credit?

To claim a tax credit you need to file a Tax credit claim form (IR526) for the relevant tax year.

You can claim a tax credit for donations if you:

  • made a donation of $5 or more to an approved donee organisation where the payment is voluntary and there is no identifiable direct benefit to you or your family in return for making the payment
  • earned taxable income (such as salary or wages, benefit, NZ Super, self-employed income, interest and dividends) during the year you’re claiming for
  • were resident in New Zealand at any time during that tax year, and
    are an individual (not a company, trust or partnership)

Check out the IRD website here for more info.

Or of course, just get in touch with us!

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AIM – The Cash flow game changer for small businesses

The Inland Revenue Department are calling it “the cash flow game changer for small businesses” – but what is AIM?

AIM, or the Accounting Income Method is a way to pay provisional tax installments based on income levels. If you don’t make a profit, you won’t have to pay Provisional Tax.

There is a catch, you’ll need accounting software such as MYOB, Xero or Reckon to be able to do this. You’ll also need to make period end adjustments.

AIM is designed for businesses with less than $5m turnover that want to have more certainty about their tax during the year by having payments match their cash flow.

Check out the IRD website here for more info.

You can talk this over with us to better understand your options and find out if AIM may be right for you.

Contact us now to make an appointment