Kia ora!
Janet Crook has now fully retired from Liddell and Crook Ltd and is enjoying relaxing and spending time with her cat, so the company’s name will now change to Liddell and Co Ltd from 31 July.
Our email addresses will now be
rachel@liddellandco.nz
heather@liddellandco.nz
julie@liddellandco.nz
sandra@liddellandco.nz
Also Heather is heading off to Europe for six weeks from the end of August through to 11 October 2024.
Tax Changes from 31 July 2024
These changes include:
- Increasing personal income tax thresholds
- Extending the independent earner tax credit
- Increasing in-work credit and the minimum family tax credit
If you use payroll software, your provider should give you an update with the new rates when they have it ready.
If you file manually or don’t use a software provider, make sure you use the new tax tables in your calculations.
Family Boost
FamilyBoost is a childcare payment to help eligible households pay for the cost of early childhood education (ECE).
If you’re eligible you will be able to claim up to 25% of your weekly childcare fees, or a maximum of $975 every 3 months.
Claims for Family Boost are for the household, not for each individual child.
Family Boost can be claimed for the following quarters
July – September
October – December
January – March
April – June
For more information go to https://www.ird.govt.nz/familyboost
What you need to do:
The claim will be made through Inland Revenue using your MyIR login so if you don’t have a MyIR login to Inland Revenue you’ll need to set up one.
Make sure your child has an IRD number
Keep all the receipts from your childcare provider, they will need to be saved as PDFs.
From mid-September you will be able to register for FamilyBoost in MyIR, from 1 October you will be able to submit a claim for July – September. 30 September.
Bright-Line Test Change
If you sell a residential rental property any profit will be taxable if sold within the bright-line period, unless an exclusion or rollover relief applies.
When you sell property the bright-line test does not apply to your main home, business premises or farmland.
This also applies to New Zealand tax residents who buy and sell overseas residential properties.
For property sold on or after 1 July 2024, the bright-line test looks at whether your bright-line end date for the property is within 2 years of your bright-line start date.
Trust Tax Rate Change
Trustee income from 1 April 2024
The Trust must pay tax on any income that your trust does not distribute to beneficiaries. If your trust earns $10,000 or less in a tax year, you’ll pay at a 33% rate.
If your trust earns any more than that, you’ll need to pay 39% on the whole profit.
Estate of someone who has died
If an estate continues to earn income while it’s being wound up, that income will be taxed at a 33% tax rate.
This tax rate will apply for all the estate’s income during the tax year the person dies, and for the next 3 years. After that, any income will be taxed as though the estate were a trust.
We suggest that if you have a trust that is earning more than $10,000 a year, you consider whether it is still providing a benefit, or if it might be time to consider winding it up.
Xero Plan Changes
From 12 September 2024, Xero will be changing their business plans. Instead of Starter, Standard and Premium plans they will be Ignite, Grow, Comprehensive and Ultimate plans.
Xero will begin to move subscribers to a new plan in phases from 12 September. We will be in touch before they make the changes. They intend to have all subscribers moved to the new plans by March 2025.
The prices of the existing plans will increase on 12 September to $35 per month for Starter, $75 per month for Standard, $99 per month for Premium and $113 per month for Ultimate.
