Some Big Updates in 2024
Our big change this year is that we have changed our name to Liddell and Co Ltd.
The other change is that our checklists can now be filled in online on our website.
Xmas Dates
We will be closed for Christmas from 20th December and re-open on 6th January 2025.
Our last day in Amberley will be 11th December and we will reopen in Amberley on 8th January 2025.
Meet the Team
Rachel Liddell – Rachel loves helping clients understand their business and feel in control and confident that their accounting affairs are being looked after. She is fully certified in Xero and can help you understand how to use Xero in your business. Rachel loves being in the Port Hills or in the mountains and drinking coffee.
Julie Farrall – Julie has worked in Chartered Accountancy since 2007. She has extensive knowledge of the software products on the market and is Xero Certified. Outside of work Julie is an avid supporter of the Crusaders and All Blacks.
Heather Fensom – If you come into our offices on Winston Ave, you will be greeted by Heather, she is our Reception Star. She also looks after IRD transactions, processes accounts, and tax returns. In the weekends she will usually be found in the garden.
Sandra Forde – works mainly from home. Sandra has worked in chartered accountant offices since 2010. In her spare time, she can be found cheering on the sidelines of her grandchildren’s sports events and actively relaxing at her beachside property or in her garden.
New Tax Rates
Trusts
There is a new 39% tax rate on income over $10,000 after distributions to beneficiaries from 1 April 2024 (the 2024–25 income year).
Personal Income Tax Rates
New Individual Tax Rates:
- $0–$15,600: 10.5%
- $15,601–$53,500: 17.5%
- $53,501–$78,100: 30%
- $78,101–$180,000: 33%
- $180,000 onwards: 39%
Xero Changes
Xero is changing their business plans to Ignite, Grow, Comprehensive, and Ultimate plans. Xero will begin to move subscribers to a new plan in phases from 12 September 2024.
Fuse Sign
We are now using new software for our electronic signing, called Fuse Sign, rather than Xero Document Packs. With Fuse Sign, you won’t need a login or password.
IRD Changes
- Changes to Interest on Residential Rentals
From 1 April 2024, a significant change was introduced regarding the tax deductibility on interest. 80% of the interest incurred for funds borrowed for your residential rental will be deductible, regardless of when the property was acquired or the loan was drawn down. From 1 April 2025, interest deductibility will be fully restored, and you will be able to claim 100% of the interest incurred. - New Family Boost
From 1 July 2024, parents and caregivers will be eligible for a partial reimbursement of their ECE fees, up to a maximum fortnightly payment of $150. You will need to register for this in MYIR and then submit a claim. IRD has advised that tax agents cannot do this on your behalf. - Working for Families
From 31 July 2024, there have been key changes to Working for Families payments:- Best Start tax credit (newborns): Increased from $69 to $73 weekly after tax.
- Family Tax Credits: Increased from $136 to $144 weekly after tax for the eldest child and from $111 to $117 weekly for a subsequent child.
- Abatement Threshold: Increased from $36,350 to $42,700. The abatement rate has increased from 22.5% to 25%.
- Student Loan
From 1 April 2024, the annual payment threshold increased from $22,828 to $24,128. You will only need to make repayments if you earn above this threshold. - Independent Earner Tax Credit
From 31 July 2024, the Independent Earner Tax Credit eligibility criteria have changed. It now applies to individuals earning between $24,000 and $48,000 per annum, previously set at $24,000 to $70,000 per annum.
IRD – What’s Under the Spotlight
Thanks to the $29 million allocated for compliance in this year’s Budget, the IRD is focusing on the following areas:
- Student Loan: Targeting overdue debt from borrowers based overseas who own property in New Zealand.
- Construction Industry: Increasing enforcement activity, particularly in the construction sector, and contacting those with high debt via text.
- Hidden/Grey Economy: Cracking down on the liquor, retail, and construction industries to combat cash-based transactions that may be evading tax.
- High-Risk Outstanding Returns: Focusing on income tax, GST, and employer returns that are overdue or at high risk of non-compliance.
- High-Risk Debts: Proceeding with legal action where the IRD has made contact attempts with no response.
- Large Refunds: Scrutinising large refunds more thoroughly before release.
Thank you for your business this year. We look forward to helping you again next year.
