October 2021 - January 2022
Six strategies to manage cash flow during Covid Lockdowns and alert level restrictions have put the squeeze on many small businesses – Prospa offers some advice that could help
MANAGEMENT
Apply for any government aid you’re eligible for The New Zealand Government has a multi-billion-dollar stimulus package that includes measures to help businesses, employers, the self-employed, registered charities and incorporated societies overcome the immediate cash flow impacts relating to COVID-19. Among them are: Wage subsidies. Leave and self-isolation support. Tax changes. The wage subsidy is available to eligible New Zealand employers regardless of size, as well as to contractors, sole traders, the self-employed, registered charities and incorporated societies. The subsidy amounts to $585.80 for each person working 20 hours or more each week and $350 for those working less than this. Employers and the self-employed are eligible for the subsidy to cover
themselves and their employees, if the business has experienced a decline of 30% or more in actual or predicted revenue. The same payments per person have also been made available to cover anyone who is unable to work because they are sick with, or forced to self-isolate because of, COVID-19.
In this instance, the isolation payment covers a period of 14 days. For full eligibility information and other details, please refer to the government website. Employers seeking more information on can also call the government helpline on 0800 40 80 40.
Get in touch with the IRD to discuss relief options The Inland Revenue Department has urged any small businesses experiencing cash flow disruptions as a result of COVID-19 to get in touch and discuss assistance options.
ship and know that they simply won’t be able to pay the full amount.
Businesses can apply to set up an instalment arrangement for taxes owed directly through the myIR portal.
Extensions on the filing date for income tax returns. Waiving of late filing penalties for GST and PAYE returns (although the due dates for the returns can’t be extended). Contractors may be entitled to a certificate of exemption for schedu-
There is also scope to apply for a write-off of tax debts where businesses are suffering serious hard22 safetynews.co.nz
Other potential tax relief options include:
lar payments. Early refunds if provisional tax has been overpaid. And be sure to make use of the various existing tax deductions available to small businesses, including these deductions you may not already know about. Businesses can contact Inland Revenue’s Adverse Events Line on 0800 473 566 to discuss assistance options.
