Given that we are already into February in the New Year, it will be a busy time coming up for tax agents and others with a March balance date.

This is therefore a timely reminder to watch out for those things that may cause issues at a later date if not properly considered. Some items to reflect on may include: 

  • Imputation credit accounts – check that these are not going to be in debit situation (for normal companies) 
  • Consider paying dividends - to clear out retained earnings 
  • Consider loss offsets and subvention payments – which is better for you? 
  • Review fixed asset schedules – clear out unused assets, check depreciation rates 
  • Consider the value of inventory 
  • Check prepayments and what needs to be added back for tax 
  • Check bad debts - are they actually written off? 
  • Are there any changes you want to make to your trading structure before the next tax year or do you have any succession plans you want to implement? These things can take time to get the paperwork in place so it pays to start early. 
  • Look through company elections into the regime need to be made before the start of the next tax year 

If you require more information on the following please contact us or your tax advisor. 

For those with a tax bill and not on an agency list, your tax is due by 7 February 2016. As the due date falls on a Sunday this year which is followed by a public holiday you will have an extra couple of days to get your payment to IRD.