Help for businesses
- Ceasing your business
- Earthquake support subsidy
- Extensions for filing returns and paying tax
- Extensions for qualifying companies
- If you need your IRD number
- If your records are destroyed
- If your business premises have moved
- Job for a local in Canterbury
- Late payment penalties
- Temporary business closures
- Welfare contributions made to your employees
Ceasing your business
If you've decided to cease your business permanently there are a few things you need to do.
Find out what you need to do when ceasing a business
Earthquake support subsidy
If you received the first Government earthquake support subsidy to help pay employees wages, this subsidy is:
- not income to you and isn't taxable
- exempt from GST
- income to your employee.
When the subsidy is paid to employees, you:
- can't deduct the equivalent amount as wages in your income tax return
- should make the usual deductions, eg PAYE, student loans, child support and KiwiSaver from your employees wage.
Extensions for filing returns and paying tax
If you think you can't file your return or make a payment, please call us on 0800 227 771 to arrange a new due date for filing your returns and making a payment.
Extensions of time for qualifying companies
This extension of time applies to qualifying companies, delayed in the 2012 income year from transitioning into look-through companies, partnerships and sole traderships.
A six-month extension of time (up to 31 March 2012) has been given to any qualifying company, who, as a result of the Canterbury earthquakes and aftershocks is unable to comply with the time limits for:
- electing to transition to a look-through company
- notifying us about transitioning to a partnership or a sole tradership.
The six-month extension of time applies from the date when the qualifying company must submit either a Look-through company election (IR862) form or a Qualifying company transition (IR891) form.
To apply for the extension of time you'll need to attach a letter explaining how either Canterbury earthquake has affected your ability to comply when you make your election or notification to transition to another business structure.
See our guides Look-through companies (IR879) or Qualifying companies (IR435) for more information.
If you need your IRD number
If you need your IRD number to apply for these subsidies please call us on:
0800 227 774
Monday to Friday 8am to 8pm
Saturday 9am to 1pm
If your records are destroyed
If your business records have been destroyed and you can't file your returns please call us on 0800 227 771.
If your business premises have moved
If you've had to relocate your business and your postal address has changed please let us know.
You can update your address details either:
- through our secure online services
- by using New Zealand Post's change my address service (this service gives your new address to other organisations as well)
- by completing a Have you changed your name, address or phone number? (IR238) form.
Job for a local in Canterbury
If you receive the job for a local in Canterbury wage subsidy from Work and Income New Zealand you'll need to:
- include this subsidy as income in your GST return
- make the usual deductions from your employees pay (PAYE, child support, student loan and KiwiSaver).
In your income tax return don't include this subsidy as income. The wages you pay using this subsidy can't be included as an expenses in your income tax return.
Find out more about the job for a local in Canterbury
Late payment penalties
Please contact us on 0800 473 566 about any expected delays in filing or paying, we'll make a note on your file and give you time to reconstruct your records or make payment.
When your accounts have been reconstructed, your returns filed, and the amount showing on the return is paid, you can apply for remission of any late filing penalties, late payment penalties and use of money interest. You can apply by sending us a secure email using our secure online services or call us on 0800 473 566.
Where you're able to file the return but can't make payment, please file the return and contact us so we can discuss the options for managing your payments. We can set up payments by instalments and/or full or partial write-offs in certain circumstances.
Temporary business closures
You may need to close the business temporarily. If this is the case you may still have certain business tax obligations to complete with regard to GST, employer related taxes, return filing and so on.
Find out more about running a business
Welfare contributions made to your employees
Gifts
Any gifts (including cash, goods and accommodation) given to your employees affected by the Canterbury earthquakes of 4 September 2010 and 22 February 2011 don't need to have PAYE deducted as long as:
- similar gifts were available to other employees irrespective of seniority, and
- the gifts were given between 4 September 2010 and 30 October 2010 in respect of the earthquake of 4 September 2010 or between 22 February 2011 and 12 April 2011 in respect of the earthquake of 22 February 2011, and
- the gifts totalled no more than $3,200, and
- the gifts didn't replace your employees wages.
Accommodation
The market value of any accommodation you provided to your employees affected by the Canterbury earthquakes of 4 September and 22 February 2011 doesn't need to have PAYE deducted as long as:
- accommodation was made available to other employees irrespective of seniority, and
- the accommodation was given between 4 September 2010 and 30 October 2010 in respect of the earthquake of 4 September 2010 or between 22 February 2011 and 12 April 2011 in respect of the earthquake of 22 February 2011, and
- the accommodation didn't replace your employees wages.
Date published: 09 Aug 2011
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