Running a business
You need to ensure you keep accurate records, budget for upcoming tax payments and account for your business expenses and deductions. If your business is expanding you may need to register to additional tax types such as GST, or it may be in your interest to change the structure of your business.
The Tool for business
The Tool for business helps you get all your small business tax issues sorted quickly and simply.
Keeping records
It is important you keep accurate and complete records. Your business records should include banking information, proof of income and expenses, cash books and wage books. You can also get free advice from a Business tax information officer or a Kaitakawaenga Maori if you need assistance with your record keeping.
The income tax obligations of a business
In running a business you need to account for income tax on your profits and the expenses or deductions you may claim against your income.
Accounting for goods and services tax (GST) and related expenses
If you are registered for goods and services tax (GST), you need to account for GST and the expenses that you can claim against it.
Accounting for employer-related taxes
As an employer you must deduct PAYE from your employee's earnings and pay it to us. You may also be liable for fringe benefit tax (FBT) if you provide employees with benefits. You are also liable for employer superannuation contribution tax (ESCT), formerly specified superannuation contribution withholding tax (SSCWT), if you provide superannuation contributions for your employees.
Managing your business tax obligations
If you are having difficulty making your tax payments you should contact us to discuss your circumstances. Learn about how to put your tax affairs right if you disagree with an assessment or if you have made an error on a return or paid an incorrect amount to us. Taxpayers who do not meet their obligations may face penalty or interest charges.
Computer tax audit
Computer tax audit is an efficient way of carrying out an audit if you have a computerised accounting and record system. It is important that computerised records are set up and maintained correctly.
Expanding the business
Find out about the changes that may be necessary when a business expands, such as employing staff or registering for GST or FBT. You may also want to consider changing from operating as a sole trader to a company or partnership.
Where to go for more help
Some sources of business advice and the areas they advise on.
Date published: 24 Nov 2004
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