TAX TIME TIPS FOR SMALL BUSINESS OWNERS Mortgage Market with Nikki

As the end of another financial year looms, many New Zealand small business owners begin preparing to submit their tax obligations to the Inland Revenue. With a list of requirements and several boxes to tick, tax time is often seen as stressful and confusing for small business owners. But with a little organisation and the right help, it is possible to take the stress out of tax time.

Find a system that works for you

To ensure your tax obligations run smoothly at the end of each financial year, set up accounting systems to help you manage your business’ finances. Whether you choose to use an accounting software program, such as Xero or MYOB, or you prefer to use a manual spreadsheet system, it’s vital you keep accurate records of everything relating to your business.

Know what you can and can’t claim

All self-employed people, including contractors and sole traders, can claim expenses against their income. Business expenses. There are also rules around what portion of business expenses you can claim etc.. Details can be found by accessing the Inland Revenue website or get help from your accountant or tax agent.

Meeting with a mortgage adviser

The first meeting is a bit like a “meet and greet” chance for to get to know each other We’ll go o your goals, talk about the type of property you w to buy, and assess how much you have to spend We’ll also give you an indication of which lende think would be right for you, and let you know if you ’ re ready to buy now or if you need to boost deposit, pay down some debt, or bump up your savings ahead of your application We can answ any questions, help you prepare a solid home lo application, and present it to the right lender.

Keep accurate records

Getting a pre-approval

Before you start house-hunting, it’s a good idea get mortgage pre-approval With a mortgage pr approval, you’ll know how much a lender is prepared to lend to you provided certain condit are met So you won’t waste time looking at properties you can’t afford to buy!

Crunching your numbers

Whether you’re a small business owner, contractor or self-employed, you’ll need to hold on to your tax records for at least seven so you can pass them onto Inland Revenue if you’re audited. If you’re GST registered, you’ll also need tax invoices for expenses to claim back the GST. Refer to the IRD website here for information about the new laws introduced by the Government, taking effect on 1 April 2023, that have modernised the GST rules for invoicing and record keeping.

We can use our easy loan tools to make understanding your finances easier

Home Loan Repayment Calculator

To find out how much you could borrow and wh your repayments could look like using different interest rates, loan terms, and repayment frequencies

Did you know you can also claim for certain expenses if you own an investment property, such

as:

Extra Repayment Calculator

• Professional services fees, like accountants, lawyers, or property managers

• Vehicle and travel expenses when you travel to inspect your property or do repairs

• Depreciation on capital expenses, like whiteware, appliances or heat pumps

Find out how much you could save on interest w an extra repayment to your home loan Test var amounts to see how you could shorten your loa term and reduce your interest charges

• Legal fees involved in buying a rental property, provided the expense is $10,000 or less

• Repairs and maintenance (but not renovations that substantially improve the value of the property)

• Rates and insurance

• Mortgage repayment insurance

Disclaimer: I can only provide financial advice in the following areas: Residential Lending, Personal Lending & Business Lending.

Split Loan Calculator

Work out your repayments when splitting part o your mortgage. You can also adjust the fixed rat portion to calculate various levels of savings