All range of businesses across New Zealand are struggling to meet costs such as rent, interest and insurance and are not in a situation to take on debt to survive the pandemic. Support is needed to help to keep businesses afloat so they won’t be closed down permanently says New Zealand’s leading accounting experts Tutbury & Associates Limited.
The Government has announced a collection of new implemented measures to provide respite for small and medium-sized businesses during the COVID-19 pandemic.
The new measures include:
- $3.1 billion tax loss carry-back scheme, which is the estimated cost over the next two years.
- $60 million estimated annual savings to business each year from changes to the tax loss continuity rules.
- $25 million in the next 12 months for further business consultancy support.
- Better flexibility for affected businesses affected to meet their tax obligations.
- New ways to support commercial tenants and landlords.
“The tax loss carryback scheme, will permit for a business to offset losses in a tax year against profit from the previous year, and receive a refund of the tax paid in the previous profitable year,” advises Kelly.
Increased flexibility for tax modifications will let Inland Revenue to adapt timeframes for businesses impacted by the COVID-19 pandemic. “This will be limited to a period of 18 months and can include extending deadlines for filing tax returns and paying provisional and terminal tax,” advises Kelly.
The changes to the tax loss continuity rules will make room for businesses to raise extra capital to stay in business and will be clarified in late 2020.
The timeframe that commercial landlords may cancel a lease has been extended from 10 working days to 30.
If you have any questions or issues about what these new measures will mean for your business, make sure you give the professional and friendly team at Tutbury & Associates Limited. “Our office will also be temporarily closed but we will be working remotely from home. We will be accessible via email,” adds Kelly.
About Tutbury & Associates Limited:
Tutbury & Associates Limited has worked hard to build their reputation of excellent customer service by working interactively with their clients and making sure that their clients get value for money. They are ideal for ideal for trades people, or anyone who wants to grow their business.
Contact Tutbury & Associates Limited:
Phone: 07 576 2194
Address: 23 Myres Street Tauranga