November Newsletter

Posted 7 years ago by Maggie Waine    0 comments

The Courts find a new way to break into Trusts: "Pay up or go to jail!"

- Source - Anthony Grant, www.anthonygrant.com

Many people create Trusts to protect themselves from financial accidents and misfortune.

They assume that the Trusts will protect them in the event of bankruptcy, but that assumption may be wrong.

Les Day and Malcolm Bruce were directors of Balmoral Homes Ltd.  The Company claimed to be a Member of the Master Builders Association when it wasn't and a number of people lost money.  It went into liquidation and its two directors were made bankrupt.

The Commerce Commission pursued them.  It learned that each was a beneficiary of Trust, and that they had received financial assistance from the Trusts.

Although the two directors were bankrupt, the Commission asked the Court to fine them and make them pay reparation, based in part on the likelihood that they would be able to access monies from the Trusts.

The Commerce Commission has kindly given me a copy of the writeen Submissions that its counsel gave to the Judge.  The Judge was told that "both offenders are discretionary beneficiaries of each of their Trusts and so they stand to benefit from Trust assets."  The Commission submitted that "the existence of the funds and assets in the Trusts are relevant in the sentencing exercise."  Copies of the Deeds of Trust were given to the Judge.

The Sentencing Act requires that a Court must, when it fines a person, take into account "the financial capacity of the offender ...".  Similarly, with an Order of reparation, the Court must believe that "the offender has or will have the means to pay a fine or make reparation...".

Judge Faris fined the directors $15,000 each and ordered them to pay $97,000 in reparation, in the apparent expectation that they would be able to acess funds from the Trusts.

In doing so, reliance was placed upon a case from 2005.  Fogarty J had upheld an Order from the District Court where a discretionary beneficiary was was said to be in "effective control" of the assets of some Trusts was ordered to make reparation.  He said that the trial Judge could properly have concluded that the debtor "reliably expects the trustees to do his bidding...": Hill v Ministry of Fisheries HC Christchurch, CR1 2004-409-000204, 18 February 2005, para 45.

In such circumstances if the debtor doesn't pay, he/she will be in contempt of Court and be liable to imprisonment.

This is not a new path.  It has been well trodden elsewhere.  For example, the Courts in England have done this in ways that make our Judges look like babies.

Here is one illustration.  Mr Browne was a Memer of the English Parliament and of modest means.  His wife had the good fortune to be a beneficiary of two Trusts, one established by her Mother and the other established by her Grandmother.  One Trust was domiciled in Jersey and the other in Switzerland.  The first had assets of £430,000 and the second had assets of about £125,000.

Following their divorce Mrs Browne was ordered to pay her husband £175,000 - which she could only get from the Trusts - if the Trustees would advance the money to her.

They refused to do this and the Court ordered Mrs Browne to be committed for contempt for refusing the pay the sum.  This Order was temporarily suspended while she appealed to the Court of Appeal.

That Court was utterly unsympathetic.  The Judge said: "This is not ... a case of improper pressure upon the Trustees by the Court ... Looking at reality, [the wife] is the sole beneficiary of some £430,000 in Jersey and a lesser sum in Switzerland. ... That money was perfectly able to have been paid and the Judge was entitled ... to believe that it would be paid.  I, for my part, believe that it would be paid today if the Trustees were absolutely satisfied that the wife had to have the money": Browne v B [1989] 1 FLR 291.

Following this decision the Trustees gave Mrs Browne £175,000 and saved her from imprisonment.

What does this development mean for the future?

First, if a person is both a trustee and beneficiary of a Trust, that person should know that a Court may decide to impose fines and order payment of reparation that can only be met by forcing trustees to make moneys available to the beneficiary.

But why stop there?

If the Bundle of Rights in a doctrine of substance, it is conceivable that such orders might be made where the debtor has powers to mainpulate a Trust to extract its wealth.

Just as it's not prudent to lie beneath a coconut tree when the wind gets up, so it's not longer prudent to lie beneath the shelter of a creditor protection Trust of which a Court may conclude that its trustees will come to a debtor's rescue.

I suspect that spendthrift clauses will begin to feature more commonly in New Zealand Trust Deeds and that other devices will be used to insulate debtors from the presumption of trustee support.

 

 

Qualifying Company Reforms

Following the Budget in 2010 it was indicated that there would be some reforms for LAQC and QC regimes.  The draft legislation was issued in October 2010 and the delay was due to the focus of the IRD being on the introduction of the change in GST.  With the 30 September now gone and the change in GST, the IRD have now moved on to the QC and LAQC reforms.

The reforms only apply to LAQC and QC's which have been formed for the year ending 31 March 2011.  The current rules are that the LAQC/QC elections need to be made within 12 months of the first years balance date.  This means that you can make an election to become an LAQC for the year ended 31 March 2011 by filing the election before 31 March 2012.

The reforms allow for a transition from the QC/LAQC regime to another structure on or after 1 April 2011.  During the transitional year the QC/LAQC must:

1. Revoke its status in writing within 6 months of the start of the income year.

2. Give written notice to the Commissioner on or before the date of the revocation notice that it intends to become a partnership or limited partnership.

3. Liquidate the Company or register the company as a non-active company before the end of the March 2012 year.

4. Before the end of the March 2012 year, create a partnership, or limited partnership with the partners being the shareholders of the previous QC/LAQC with their interests being the same as the QC/LAQC shareholding.

The partnership or limited partnership rules will then apply from the commencement of the year 1 April 2011.

There is also an option for transition to a sole trader on the basis that the QC/LAQC will only have one natural person shareholder.

There is also the option of transitioning in to a new entity that is being created under statute called a "look through" entity.  It is not the intention to discuss the "look through" company in any detail as this is currently in proposed legislation and has not been passed, and we have found historically what comes out in draft legislation sometimes changes before the Royal Assent is given.

It is also worth noting that in any transition period there will be no tax to pay in the restructure such as depreciation recovered etc.

The intention of this article is to give our clients a "heads up" and know that we are currently looking at the options that are available for the LAQC/QC regime and will be able to give some certainty and advise to you once we have finalised the legislation and a clear indication of the options that are available to us.

We expect this to be completed sometime late year or early in the New Year, however it is beneficial to note that as we have a transition period of 1 April 2011 to 31 March 2012 it does give us some time to work through the options rather than having to have them in place by 31 March 2011.

 

Should Public Accountants Marry?

- Source - Alexandra Johnson, CA Journal November 2010

Work-life balance was an issue for accountants in the 1940s, as it is today.

The 1940s Journal reveals accountants wrestled with their image, their interminable workload and the expectations put upon them by their profession.

One journal article from 1945 is boldly entitled "Should Public Accountants Marry?"

'The old wheeze about the travelling salesman's child who announced her father's infrequent homecomings by calling "Mother, that man is here again", applies also to the poor wight who, having decided upon public accounting as a career, has the temerity to take unto himself a wife,', the writer declares.

He writes that to be able to respond to the expectations of one's clients, the public practitioner is obliged to devote all his waking hours to their varied interests.

'This means that long after business hours he is to be found at this office poring over the various tax and other services to which he subscribes, seeking the latest rulings, opinions and decisions on matters which affect his clients.  Not infrequently he carries home with him a number of pamphlets on special matters to study far into the night.'

The write laments the accountant's lot: 'When his heart is young - and, but who has ever met a gay accountant - he wishfully hopes that not too many years will elapse before he can shake the grind of long hours and uncertain home life and join those practitioners of whom he had heard who address the visiting firemen and letter-carriers, devote time to research, write books, compose articles... But has that happy time ever arrived to bring joy and comfort to the average or more than average public accountant?  Not within memory of man.'

It goes on to say that accountancy is of such an intimate and confidential nature "that only complete retirement or the call of the Grim Reaper will bring relief".

'And so he struggles on, a stranger and killjoy at his own fireside, a nervous and physical wreck, and no pleasure to himself or anyone else.'

 

Opportunity to Franchise

 Click the link below to view a flyer that was sent to our office for a seminar on the process to go through and franchise your business.  If you are interested, please print the flyer off and send directly to the organisers.

Seminar Registration.pdf

 

 

Hamilton St Andrews Charity Golf Day - Lions Cancer Lodge

When : - This Sunday14th November.
 
Shot Gun Start at 10am. That means every one starts at the same time & finish at approx the same time, followed by a late  lunch, a Bottle Auction, $100 raffle & prizes for Good and Indifferent golf.

 

It is good natured fun, and a painless process to lighten your pockets.

You would have a chance to improve on your skills, in whacking the little white ball.
 
We guarantee a prize for every player.

 

Matley's Christmas Closing Time

Matley Financial Services will be closed from Monday 20th December 2010 and will reopen on Monday 17th January 2011.

Happy Holidays!


September Update

Posted 7 years, 2 months ago by Maggie Waine    2 comments

Your Annual Accounts

As part of the quality management of our practice, we have been conscious of the turnaround times of work arriving in our office to the time it is completed and returned back to clients.  It is unfortunate that many clients have the same balance date 31st March and that can create a backlog of work.  What we have found with no form of management tool in place it had been difficult to gauge what stage jobs where at and knowing when the work was able to be returned to you.

We recognise this  need and as such we have just recently invested in new software that tracks the workflow of our practice.  This means that from the time your paperwork arrives in our office, through to the time that your annual accounts are completed, we have a number of stages and steps which can be identified at any point in time where the job is at.

A glitch of the software though is that in order to track the order of work, we are required to create new jobs for work that is done.  This in turn results in a number of invoices being raised for the work that is completed.

You may have noticed in recent weeks if you have received an invoice for more than one job (eg Annual Accounts and GST).  These historically were rolled together on one invoice, but due to the new software, we now have to raise two.  While we understand that this is not being kind to our carbon footprint, we do believe that the enhanced service would be better for you in the long run.

 

Who's Where?

Maggie and David are away from 22nd September to 4 October.  Two trips to Wellington - first one for a Lions conference, and the second to Wearable Arts Awards.  The office will be open during this time however, so you can get hold of Benjamin, or David will have his mobile with him  (029 452 1985).

Jo is having a break away in sunny Australia and will be away from 24th September to 7th October.  As Jo's leave coicides with Maggie and David's absence, Ben will be the only one manning the office, so be nice to him!

Team Building via Ten Pin

As you may be aware we are expanding our practice down to Tokoroa in the New Year.  The practice of McCulloch & Lally and Matley are joining together.  So everyone could get to know one another and have some fun, Maggie arranged a team building exercise  on the 27th August at The Bowlevarde at Sky City.

We had three teams of players.  Team 1 was made up of Jo, her friend Casey, Ben and his mate Simon.  The winner for this team was Simon with an overall score of 198, Jo was second with 191 and Ben came in third with 178.

Team 2 was made up of Thelma (from the Tokoroa practice), her sister Bernie, David and Neil.  The winner for this team was Thelma with an overall score of 206, Bernie was second with 186, Neil third with 171 and David was a measly 155!

Team 3 was made up of Maggie, Wendy (Frank Lally's wife), Frank, Jenny (from the Tokoroa practice) and John (Matley's invaluable cleaner).  The winner for this team was John with an overall score of 204, Maggie was second with 171 and Jenny third with 153.

It was a fabulous night as many of us had never played ten pin bowling before!  Congrats to Thelma however who had the highest score over all of us!

What does MATLEY mean?

Recently we have had a number of people asking us about our Company name, and quite a few people mix up the letters and call us Mately - so I thought I'd let you know what the inspiration was.

Firstly - it is NOT David's last name - his last name is Waine.  But, it does link back to a part of his name.  David's full name is David Matthew, and Maggie's is Margaret Lesley.  When David and Maggie decided to go out on their own, they wanted something that represented that the Company was made up of both of them. 

So they took the first half of David's middle name - MAT and the second half of Maggie's middle name - LEY and created "MATLEY".  Clever ay!

 

GST - only a few more sleeps to go!

As many of you will be aware the GST changes from 12.5% to 15% on the 1st October 2010.  There are a lot of different opinions and a variation floating around into how to treat the GST so the purpose of this article is to try and give clients a sense of direction on the GST.  First it is important to note that GST changes on the 1st October 2010.  What this means is that if you are issuing invoices up to the 30th September 2010 you must issue those invoices with 12.5%. This comes back to a technical argument called the time of supply and it means that when you supply the goods or services that is the point in time which you must invoice for the goods or services.  This also means that if you are going to issue and invoice for work up to the 30th September 2010 then you have up to 11th October 2010 to issue the invoice for the work done till September dated 30th September but issued up to 11th October.  Now the point behind this is no one in the IRD and GST working party expects people to be up at midnight 30th September issuing invoices so they are at 12.5%.  They also expect that during the course of the weekend being the 2nd and 3rd of October many clients are still waiting for invoices to come in to determine the allocation of parts or other sources of material that goes into an invoice by way of disbursement.  Therefore the next weekend after that is the weekend that most clients will be issuing their invoices and therefore the 11th October is the next Monday which is the date that you can get down to the post office to post out your invoices. 

The old GST calculation was quite simple to determine the GST component.  It was simply a matter of taking the exclusive amount and dividing it by nine to give you the GST.  The new calculation is to divide by 23 and multiply by three.  For those of you who are more mathematically inclined you can also divide by 1.15 and this will also give you the GST component.  If you take it was a simple calculation; $1150 divided by 23 and multiplied by three it will give you $150.00.  Similarly if you have $1150 divided by 1.15 this would also give you $150.00 which is the 15% GST.  Please note DO NOT divide by 0.15 to determine the GST as this will result in a significantly larger number and your GST component should never be greater then your actual bill or invoice. 

In the next few weeks you should be receiving a GST form which should look just the same as any other normal form but there is only one simple adjustment you need to make in respect to your debtors and creditors as at the 30th September 2010.  The point of the calculation is to determine that if you are on a payments basis any invoices you issue on the 30th September you are required to issue them at 12.5%, when you get paid on the 20th October you will be required to return GST at 15%.  Therefore this is what we call GST slippage and the GST slippage means that you actually return more then what you’ve got paid for on the invoice.  To compensate you for this the IRD allows a debt adjustment in the GST return which means you are getting the GST back in September only return it in October.  The same applies to your creditors.  For Example – Swinton Appliances account for GST on a payment (cash) basis.  They have creditors of $9530.15 and debtors of $16,125.17.  Their adjustment calculation is:

Creditors $9530.15 – Debtors $16,125.17 = $6595.02 cr

$6,595.02 ÷ 51.75 - $127.44

As Swinton Appliances debtors are larger than their creditors their adjustment of $127.44 is a GST credit.

There are some anomalies when it comes to HP and finance leases etc and these are specifically covered within the GST working group and if they apply to you please feel free to call the office.  However as a general rule if you are not advised by your supplier to increase GST then you are entitled to claim it back at 15%.  If you have any financial leases that have less then 4 years to go then GST is to be returned on the basis that the finance lease documents rather then the GST rates that applies.

There will be a number of you who have accounting packages and if you are on Banklink you will find that the Banklink upgrade will be available from 1st October and the new GST applies in the upgrade which we have received in our office but have not yet updated it and the other software people will be sending through update patches to increase the GST from 12.5% to 15%. 

By a general rule the IRD has been told by the Honourable Peter Dunn that no tax payer is to be penalised for the change of GST.  What this means is if you make a mistake in the calculation of GST during the transition period so long as you make a payment or claim back or the original GST then you will not be penalised by the IRD in a reasonable period of time.  This may and also include when we come to complete the annual accounts and notice that there is a GST issue arisen and we make an application to the IRD for ether a payment or refund.


GST Seminar

Posted 7 years, 3 months ago by Maggie Waine    2 comments


August Update

Posted 7 years, 3 months ago by Maggie Waine    2 comments

TAX XAT TAX!!!

GOVERNMENTAL CHANGES

 

 Working for Families Adjustment

 Ministerial Statement

 

“The Tax Working Group also reported that anomalies arise through the use of taxable income as a means of determining eligibility for certain Government assistance.  Taxable income may not always be a good measure of true economic circumstances.

 

As an initial step, from 1 April 2011 investment losses will be added back to taxable income for the purpose of determining a family’s eligibility for Working for Families assistance.

 

Further changes of eligibility for Government assistance, including student allowances, covering areas such as distributions from trusts and income from cash PIEs, will follow after the Budget.  Officials will release a paper setting out the issues and proposed solutions later this year for implementation from 1 April 2011”

 

Editorial comment

 

The change to the rules on eligibility for Working for Families assistance is likely to be uncontroversial.  Eliminating the impact of investment losses may rightly be regarded as conferring a more accurate entitlement to the assistance.

 

As part of the revisions to Working for Families, the Budget papers also announce that indexation of the  Working for Families tax credit abatement threshold will be removed.  No further details were supplied.

 

The second aspect of the Budget Statement announcement is perhaps not so clear-cut.  There is plenty of room to speculate on the meaning of reviewing the use of trusts and cash PIEs in the context of eligibility for “certain” social assistance programmes.  Vague language of that kind readily leads to speculation about the social assistance programs that will be affected by the proposals.

 

Speculation is also likely about the meaning of trust distributions and their impact on entitlements.  A benign view of the Budget announcement is that a distribution of trust capital, along with a distribution of trust income, may be taken into account in determining entitlement to the relevant social  assistance programme.

 

The Budget papers go on to indicate that additional forms of financial benefit may be taken into account for the purpose of measuring entitlements.  Along with trust distributions and income from cash PIEs, eligibility may also be based on “income from non-resident spouses and certain fringe benefits”.

 

Property tax changes

Ministerial statement

 

            “… the Government is not convinced that all buildings actually         depreciate.

 

Allowing tax deductions for depreciation provides an unfair tax advantage for these assets.

 

Accordingly, the depreciation rate for most buildings with an expected life of 50 years or more will set to zero from the start of the 2011/12 income year”.

 

Editorial comment

 

Where a building does not depreciate, clearly no depreciation allowance should be available.  However, it is likely that many buildings with an expected life of more than 50 years (the default life for most buildings other than those made of “temporary” materials such as portable buildings and hothouses) do in fact depreciate.  The Government has left open the opportunity for building owners to apply for a depreciation rate of other than 0% for such classes of buildings.  We can be confident, however, that one class of building that will not get a higher rate is residential dwellings – the unstated but obvious target of the reforms.

 

The changes come into effect from the start of the 2011/12 income year and, unlike most previous changes to the depreciation regime, apply to the existing assets, not just those acquired after the new rules came into effect.

 

Building owners will still be able to claim deductions for repairs and maintenance, to maintain the condition and value of their properties.  They will also still be able to claim depreciation deductions for “fit outs” not considered part of the building.  According to the Inland Revenue Policy Advice Division, the Government “intends to review the treatment of commercial ‘fit out’ and, if necessary, amend the rules prior to 1 April 2011 to address any uncertainty in this area”.   Given recent interpretation statements issued by the Commissioner of Inland Revenue in respect of fit out of residential properties, it is likely that any legislative resolving of “uncertainty” will be a mechanism to reduce the types of assets that can be separately depreciated and to increase those that need to be treated as part of the building (and, under the new rules, not depreciable).

 

The other big change on the depreciation front is for assets other than buildings.  The 20% depreciation loading will no longer be available for any asset purchased after 20 May 2010.  The loading was introduced in 1992 (originally at a rate of 25%) to encourage investment in new assets.  The current Government has decided that such a subsidy is no longer warranted and that the $3,120 million of revenue expected to be saved from the combined depreciation changes can be better spent elsewhere.

 

 

Loss attributing qualifying companies (LAQCS)

Ministerial statement

 

“Many investors hold property through Loss Attributing Qualifying Companies, or LAQCs.  After a short period of consultation, legislation will be proposed so that from 1 April 2011 all LAQCs will be taxed as limited partnerships.

 

The main impact of this change will be to ensure both profits and losses are assessed at the marginal tax rate of the investor”.

 

Editorial comment

 

In the lead-up to the Budget, there was some speculation that the days of LAQCs were numbered and that property losses would be ring-fenced in the vehicle making the investment.   Although the proposed loss ring-fencing rules are not comprehensive, the new regime will limit the amount of the loss that can be passed through from an LAQC to the shareholder, to the amount the shareholder has invested in the LAQC (in much the same way as losses of limited partners are restricted).  The shareholder’s investment (or “membership base”_ would include the initial equity invested, along with undistributed earnings of the LAQC and the share of any debt guaranteed by the shareholder.

 

The new rules will also mean that where investors what to be able to access the losses at their own personal tax rate by passing through the losses in the bad years, the must also pay tax on the income in the good years at their personal rates.  With the removal of depreciation on residential properties (still the major use of LAQCs), there are likely to be more income-generating years relative to loss years going forward.  Investors may need to reconsider whether an LAQC is still the appropriate vehicle to hold such an investment.

 

TAX AVOIDANCE

Penny & Hooper Case – Contracting Tax Avoidance

The recent land mark Court of Appeal ruling in the Penny and Hooper case has raised alarms within professional circles and amongst small business owners.  The case involved two Christchurch orthopedic surgeons who previously operated their practices as sole traders.

 

However, around the time when the top personal tax rate was raised to 39%, Mr. Penny and Mr. Hooper incorporated their businesses.  In each case the surgeon was employed by their company and paid a salary of $100,000 and $120,000 respectively, although both companies were deriving profits circa $700,000.

 

Remarkably, both surgeons admitted during the case hearing that the salaries paid were less than the market rate they would have accepted from a third party.  The result was that the tope income tax rate of 39% was applied to a minimal amount and most of their profits were taxed at a lower company or trust tax rate of 33% and then distributed to the trusts.

 

Ultimately both surgeons and their families were receiving substantial additional income without attracting additional income tax liability.

 

What distinguishes Penny and Hooper’s decision from other tax avoidance cases is that the judges adopted a “look through” approach to the taxpayers’ arrangements to determine whether the combined effect amounted to tax avoidance, where in the past each transaction was tested separately.

 

Amongst other concerns within the business community, a key concern is whether Inland Revenue’s focus is on professional people only, (such as doctors, dentists, accountants) who structure their professional services through companies and trusts, or whether the Penny and Hooper decision might be applied to any tradesman operating through a company.

 

In an attempt to clarify the Commissioner’s position the Inland Revenue has released a Revenue Alert.  The Revenue Alert states that “where a service business relies mainly on an individual’s personal skills to generate income, than contribution to the business should be properly reflected in the income returned by that individual”.

 

In his comments on the Revenue Alert Craig Macalister, NZICA’s tax directors, noted that in the context of the Revenue Alert “it is hard to distinguish, for example, between a medical practitioner, an electrician, a company director, or anyone that relies mainly on personal skills to generate income”.

 

However, the Inland Revenue accepts that there are genuine commercial reasons why profits may be kept in a company and “would not expect that remuneration would be paid where there is little or no profit genuinely being generated in economic reality, such as in a start-up phase or in difficult trading conditions”.

 

The Inland Revenue accepts “that income can be properly retained for major expenditures or provisioning” and their “concerns are not with non-payment of remuneration or with retention of earnings inside an operating business entity, where these are for genuine commercial or economic reasons.  In such circumstances, it is unlikely that there would be other distributions of profit from the business to the taxpayer and his or her family”.

 

From 1 April 2011 the difference between the top personal tax rate and the company tax rata will fall to 5%.  However, the 5% tax benefit will be merely a timing difference.  When the income is paid as a dividend the difference will need to be paid by the shareholder. 

 

Looking for something SPECIAL?

 

Hamilton CBD Lions – Fundraising Project

You maybe aware that I am involved with Lions International.  Our Club is one of the organizing clubs to raise $3million for the development of the new Cancer Society’s Lions Lodge located at the old Braemar site.

 

The Brick 4 Life Campaign which is designed to provide ongoing support for the refurbishment at the Lions Lodge is one of the projects I am involved with.  You can either purchase a number of bricks for $50 each or alternatively you could look towards Gold or Platinum sponsorship which is $5,000 and $10,000 respectively.  The sponsorship can be paid over a 12 month period, so for example if you wish to have a Gold sponsorship you would commit to 12 equal installments of $417.  The contributions are paid to a Charitable Trust are deductable for your tax rebates.

 

A Gold sponsorship will receive a plaque recognizing the contribution to the appeal for the 2010 year and a Platinum sponsorship will have their individual or companies name put on a piece of artwork that has been commissioned by the Cancer Society and be located at the Lions Lodge.

 

If you would like any further information in regards to the Brick 4 Life, please contact me or otherwise you can log on to the website www.brick4life.org.nz

FACEBOOK!

Matley Financial Services now has a Facebook page.  Its a work in progress, but you can find our mission statement and photos of the team on the page.  Its always nice to put a face to the voice on the end of the phone!

Check it out here:

http://www.facebook.com/#!/pages/Matley-Financial-Services/122662821113446?ref=ts

 

 

 

 

 


The Budget - Our Commentary

Posted 7 years, 6 months ago by Maggie Waine    0 comments

Budget Commentary

In what was widely anticipated as a aggressive budget announcement yesterday, the Right Hon Bill English has presented his second budget as the Minister of Finance and the purpose is now to summarise some of the key points that will affect you going forward.

GST Rise

As anticipated the GST has risen to 15% from the 1st October.  This would indicate according to the Government Actuaries, resulting in a $2.46 billion tax increase by the year ended June 2014.  The finer details of how the implementation of debit and credit notes will of course come in time, but at the moment many businesses will need to gear up for the rise in GST commencing 1st October.

Tax Rates

Tax rates will drop from 38% to 33% from 1st October for the top tax rate and also the Company tax rate has dropped from 30% to 28% from the 1st April 2011.  This of course makes New Zealand more competitive than Australia as Australia is looking to introduce the 28% tax rate for Companies in four years time.

We all knew that property was in the gun on the budget radar and as widely anticipated the use of Depreciation claimed against rental income will cease and there is a new rule being introduced that will affect LAQC's.

Under the current rules, shareholders and LAQC's have been able to rather than retaining them or having them taxed at the lower company rate, effectively creating what is known as a tax abitrage.  Instead of having the losses assessed by a LAQC the profits and losses are assessed at the marginal tax rate of the investor.  In effect this means that there will be a 28% tax on Company profit and losses as opposed to the tax back in the hand of the shareholder.

It is intended that the property investors who have more houses will be worse off comparatively speaking to what they were, and while it is most probably in the most desirable benefit of the investor, the reality is it could have been a hell of a lot worse.

The important thing at the moment is not to panic, but rather to digest the examples that the IRD and Government will be issuing in due course finalising details that have come out in the budget and determining what the best course of action going forward is for rental properties.

We have until 1st April 2011 which means that there is ample opportunity to reconsider some restructuring that may take place to maximise the tax efficiencies of the rental companies and to see whether it is better to maintain properties in personal names, transfer through to trusts, or a host of other options that may be available.  We will be watching the development of the details closely and will report in due course when more is known.

Key Changes Announced

  • Cuts to personal tax cuts at every threshold level, with the top personal tax rate falling from 38% to 33%; tax on income between $48,000 and $70,000 falling from 33% to 30%; a new 17.5% rate for income between $14,000 and $48,000, down from 21%; and 10.5% on income up to $14,000.  Two-thirds of the tax returned by the package goes to income below $48,000, English says.
  • A rise in the rate of GST from 12.5% to 15%, with a 2.002% compensating increased for beneficiaries, pensioners and recipients of Working for Families tax credits to offset the rise on October 1;
  • An end to depreciation allowances on buildings deemed to have more than a 50 year life, to net around $1 billion a year in additional tax;
  • Abolition from yesterday of the 20% automatic depreciation loading available for newly purchased assets;
  • A change to the tax treatment of loss attributing qualifying companies to become "flow through entities", similar to limited partnership, expected to raise around $65 million a year;
  • A cut in the rate for portfolio investment entities (PIEs) to 28%, to align with the new company tax rate, kicking in from October 1 for PIEs taxed at investors' marginal tax rates, and 2001/12 for other savings vehicles;
  • Abolition of tax benefits relating to capital contributions for the purchase of capital assets;
  • GST base-broadening to prevent so-caled "phoenix" scheme frauds, where GST is reclaimed by an entity which liquidates before paying GST owed
  • An end to the redundancy tax credit from October 1.

Further changes, covering areas such as distribution from trusts and income from cash PIEs will follow the Budget, for consultation and implementation by April 1.


May Mayhem!

Posted 7 years, 6 months ago by Maggie Waine    2 comments

Practical Thoughts on the Proposed Tax Reforms

 The worse kept secret has been the government indicating a rise in the GST rate to 15%. If past reforms are anything to go by, the rate increase could be effective from as early as October 2010. While the implications of a rate increase seem simple enough, there are a number of practical issues to consider. How will the GST increase be transitioned?  What rate of the GST will apply to contracts that are contracts that are conditional or unconditional on the date the GST rate changes? What happens if I have a fixed price contract made at the 12.5% rate but it doesn’t settle until after the 15% rate applies – do I have to pay the extra tax, and if so can I recover it from the other party? These are just some of the practical questions that spring to mind.   

 While the details of any changes will not be finalised until after the budget announcement, it is likely that GST cut-off date will be set (say 1 October 2010) and that the time of supply date will be the trigger point of determining whether supplies are subject to GST at 12.5% or 15%. Whether time of supply has been triggered will therefore become a crucial consideration, particularly for a big ticket items or large adjustments such as a change in use adjustment or deregistration.

 The time of supply is generally at the earlier of the invoice or payment, however there are some exceptions to this such as supplies made between associated persons (the time of supply when the services are provided or goods are made available). In the case of a land contract where the GST portion can be significant, we recommend reviewing your contracts with additional care where the contract is to span the GST rate increase.

 What about fixed price contracts? You are allowed to increase the purchase price and recover the additional GST from the purchaser where the contract has been entered into within 3 months of the rate change coming into force, not where the contract specifically prohibits an increase or where the parties have already contemplated the rate increase in agreeing the fixed price. Case law has held that where a contract is “GST inclusive”, the parties have contemplated the rate increase. We recommend that fixed rate contracts are reviewed carefully in the lead up to any change in the GST rate. Clearly whether a supplier on-charges the additional 2.5% to its customers may be a commercial decision, however for the large purchase spanning the GST rate increase it may be worthwhile to consider whether specific additional clauses should be included to ensure you do not incur an unexpected GST cost.

 In the case of the voluntary registrations, consideration should be given to deregistering prior to any rate change should registration no longer be required.

 Another issue to consider is where you may be considering purchasing second hand goods from a non registered vendor. A GST input tax claim is available in relation to second hand goods (subject to the usual limitations) equal to one ninth of the purchase price. Delaying an intended purchase of second hand goods until after any GST rate increase would mean a GST input tax claim could be made at 15% (purchase price x 3/23). The GST portion on the same $100,000 purchase price would be $13,043.

 If any of this applies to you please feel free to contact us..

 

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IRD shifts approach on GST applied to land

 Inland Revenue has signalled a further shift in its approach on GST when applied to land sales.

 It is aiming its guns at “phoenix” property companies which claim GST rebate for inputs but which end up “at the bottom of the harbour” by the time the Department comes to collect a the other end of the GST process.

 In November, Inland Revenue proposed a “domestic reverse charge” by which the obligation to account for the GST on land and other transaction on assets worth more  than $50million is put onto the buyer rather than the vendor.

 Submissions on that closed just before Christmas and Inland Revenue has now gone back to submitters with further refinements to the proposals. 

 These include a wider definition of the land and a proposals that Inland Revenue have greater powers to “deem” people GST registered.

 The New Zealand Institute of Chartered Accountants (NZICA) has broadly endorsed the new proposals although it says the extension of the definition of land may not be needed.

 The new proposals extend then reverse charge: they still zero rate the vendor and pick up the GST from the purchaser.

 It will apply to all GST registered persons involves in selling land or transactions which involve a missed supply if land and another component.

 Vendors will have to establish that the purchaser is a GST registered before a transaction can be zero-rated: if it is not, and the purchase goes ahead, Inland Revenue will have the power to deem the purchaser GST registered and to claim the GST off them.

 The NZICA says this may not be necessary and that there is a risk of “legislative overshoot” – it could potentially catch leases, which are not part of the issue Inland Revenue, is trying to address.

 To protect purchasers from unscrupulous vendors who may represent themselves as being not registered for GST, the NZICA suggests some way for recipients to be able to check whether a vendor is GST registered, and also a provision allowing the Department to pursue the vendor if a misrepresentation has been made.

 The NZICA also suggests including a “checkbox” on GST to record if the taxpayer had made a zero-rated land transaction.

 “This is suggested with the thought that Inland Revenue may be interested in the undertaking audit activities to know who is undertaking zero-rated supplies of land.”

 

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What’s it worth?

 When a business is offered for sale, or is being valued on the basis of Fair Market Value, the terms and conditions relating to the potential sale can have a significant impact upon the value of the business. Some valuers apply one single earnings multiple to an industry whiteout considering the difference that these term of sale (and other value modifiers) can have on the value of a business.

 Case Study: 

 Two businesses with similar public practices are offering their practice for sale – But with markedly different sale terms: 

Business ‘A’
 
Terms
 
  • Full Payment on settlement date.
  • Vendor assistance – minimum of 20 hours per week @ $90 per hour.
  • Vendor assistance – Maximum period 6 months.
  • Restraint of trade period 1 year.
  • No Adjustment for lost contracts.
 
Business ‘B’
 
Terms
 
  • Payment to be spread in equal amounts over 3 years (interest rate on outstanding amount 4.5%)
  •  Vendor assistance on an “as-needed” basis @ $45 per hour.
  • Subsequent assistance on an “as-needed” basis @ $45 per hour for up to 3 years
  • Restraint of trade period 3 years
  • 50% of annual fees for any “lost” contracts deducted from the final payment.

 It is not difficult to see that the offered by business ‘B’ are far more beneficial to a potential buyer than the terms offered by business ‘A’. The spread of the capital payment at a low interest rate, the adjustment for any clients lost in the transfer, the lower hourly rate and greater flexibility of vendor support; all these terms of sale offer much more value to potential purchaser.

 Even though the two businesses have similar turnover and profit, the business offered by business ‘B’ has a higher value – because of the terms and conditions offered.

 

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Why We Want Your Birthdate

Our Business Services Support staff member Jo Reading will be contacting you over the next few months to obtain your birthdates.

 

The reason this is so important is that the Inland Revenue now requires this information on file.  If you do not get the call from us, you may receive it from the Inland Revenue.

We are advising you of this as Jo has already made a few calls, and people have been wary of disclosing this information because of identity theft.  If anyone from our office calls (David, Maggie, Ben or Jo) they can be trusted that any information requested is purely for use with completing your taxes or financial statements.

 

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Tax System Explained in Beer

 People who grizzle about ‘tax breaks for the rich’ should read this:

Everyday, ten men go out for beer and the bill for all ten comes to $100.

They decided to pay the bill by apportioning the total cost of all the drinks in the same way that we, in NZ. Pay our taxes.

This meant that:

  •  The first four men (the ‘poorest’) would pay nothing.
  • The fifth man would pay $1.
  • The sixth man would pay $3
  • The seventh man would pay $7
  • The eighth man would pay $12
  • The ninth man would pay $18
  • The tenth man (the richest) would pay $59.

The ten men drank in the bar every day and seemed quite happy with this arrangement – until one day, the owner threw them a curve.

“since you are all such good customers,” he said “I’m going to reduce the cost of your daily beer by $20.

“Drinks for the ten of you will now cost just $80”.

The group will still wanted to pay their bill the way we pay our taxes – so the first four men were unaffected. They would still drink beer for free. But what about the other six men? The paying customers?

How could they divide the $20 windfall so that everyone would get his fair share?’ They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested a graduated price reduction based on what each man was currently paying, so that everyone would benefit. They all agreed that this was A good idea so he proceeded to worked out the amounts each should pay:

  •  The fifth man, like the first four, now paid nothing (100% savings)
  • The sixth man now paid $2 instead of $3 (33% savings)
  • The seventh man now paid $5 instead of $7 (28% savings)
  • The eighth man now paid $9 instead of $12 (25% savings)
  • The ninth man now paid $14 instead of $18 (22% savings)
  • The tenth man now paid $49 in stead of $50 (16% savings)

 Each of the six was better than before. And the first four continued to drink for free. But once they got outside the restaurant, the men began to compare their savings. “I only got a dollar out of the $20.” Declared the sixth man. He pointed to the tenth man. “But he got $10!” “Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got ten times more than I did!” “That’s true!!” shouted the seventh man. “Why should he get $10 back when I got only two? The wealthy get all the brakes!”

“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”

The nine mean surrounded the tenth and beat him up.

The net night the tenth man didn’t show up for drinks, so the nice sat down and had beers with out him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half the bill! And that, boys and girls, journalists and college professors, this is how our tax system works. They people who pay the highest tax get the most benefit from the tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. On fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

 

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CRUISING

David and Maggie are taking a 2 week holiday to celebrate their 5 year wedding anniversary.  They will be out of the office from 24th May to 8th June 2010. 

The office will be run by Benjamin Anderson during this time and if you have any queries, please do not hesitate to contact him as he can contact David and Maggie if the matter is urgent.

Both David and Maggie's mobiles will be left behind.

Bon Voyage!!

 

 

 

 


Forecasting February

Posted 7 years, 9 months ago by Maggie Waine    2 comments

Hello,

If you are wondering why you have received this email - you have been automatically subscribed to receiving our newsletter via email due to being a client or business associate of Matley Financial Services.  If you no longer wish to receive these newsletters, please click on the unsubscribe function.

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POSSIBLE TAX CHANGES FOR PROPERTY INVESTORS

- Source, WHK

Proposed tax changes - What's the effect for residential property investors?

The Tax Working Group ("TWG") recently reported on options for changing the tax system.

The report only presented options and the Government will consider these.  Nothing has been ruled out, other than capital gains tax on the family home.  It will take some monhts for the Government to consider the recommendations with changes unlikely before 1 April 2011.

In the meantime it's useful to consider how your residential investment properties may be affected if the options were adopted.

 GST

The TWG recommended GST be increased to 15%.

As a residential property investor you pay GST on rates, insurance, repairs and some other costs.  GST increasing to 15% would increase these costs by 2.5%.

If these totalled $4,000 the increase would be $100.  You'll either need to raise rents to pass the increased on to tenants or pay it yourself.

 Capital Gains Tax

The TWG were not in support of a capital gains tax.  However, land tax is a possibility.

Land Tax

A land tax was suggested.  The report discussed 0.5% of land values.

If you had land worth $200,000, the tax would be $1,000.  This is a cost to you unless rents could be increased to cover it.

It seems likely land tax would be collected in the same way as rates.

The TWG recommended concessions be made for those who would have cash flow difficulties with paying this tax, e.g. the elderly.

Building Depreciation

The TWG recommended that depreciation on most buildings should be removed because evidence suggested that buildings did not actually depreciate over time.

Although the tax saved on building depreciation is often repaid on sale it currently provides a cash flow benefit while the building is owned.

Depreciation on a building which cost $300,000 results in an annual tax saving of about $2,000 to $3,000 depending on how long its been owned.  This tax break would stop.

Risk Free Rate of Return

The TWG liked the idea of a percentage of the equity in land being taxed annually.  If you own a property worth $750,000 with a mortgage of $250,000 there is $500,000 of equity.  If the risk free rate of return was 6% you would have income of $30,000.

If you paid tax at 38% the tax payable would be $11,400.

Actual income and expenses would be ignored.  If your profit was more than $30,000 you would like the risk free rate of return.  If your profit was lower you would have to pay more tax, which might cause you cash flow difficulties.

The TWG recommended that further work be done on this option.

 Ring-Fencing Tax Losses

There has been much talk about not allowing rental losses to be offset against other income, e.g. salaries.  This was not included in the TWG's recommendations.

If this happened you wouldn't receive tax refunds from your property losses.

 Income Tax Reductions

It's not all doom and gloom.  The TWG recognised that company, trust and top personal tax rates would best be aligned at 30%.

If you pay tax at 33% or 38% your tax bill would go down.

 What should you do now?

Most important is not to panic, no decisions have been made and any changes are some time away.

However, you should consider how you might be affected if one or more of the recommendations were adopted.  You might need to raise rents or reduce costs to cover any extra tax.

If you rely on a tax refund to pay property costs you need to work out how you will pay the bills if there wasn't a refund.

Any tax changes may reduce property values, at least in the short term.  You need to consider what effect this might have on your current arrangements.  Lower prices also mean an opportunity to acquire more properties.

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PROMOTION:Profit Optimiser 

 

HOW WOULD YOU LIKE TO KNOW THE FINANCIAL IMPACT OF EVERY BUSINESS DECISION BEFORE YOU MAKE IT?

 ARE YOU PAYING TOO MUCH TAX AND LOOKING TO FIND LEGITIMATE WAYS OF REDUCING THIS TAX BEFORE IT’S TOO LATE TO ACT?

HAVE YOU GIVEN YOUR BUSINESS A HEALTH CHECK LATELY?  LOOKING FOR WAYS TO IMPROVE YOUR CASH FLOW OR YOUR BOTTOM LINE PROFITS?

THINKING ABOUT OBTAINING FINANCE AND WANT TO KNOW IF YOU WILL BE SUCCESSFUL BEFORE WASTING TIME WITH LENGTHY AND COSTLY APPLICATIONS?

 

If you have answered YES to any of these questions, then you should definitely read on to find out more about our exclusive Profit Optimiser services. 

 

An introduction:

 We use an easy to understand, financial modelling software program to provide a critical financial analysis of your business.  Recently, the major banks adopted this very same software for the specific purpose of processing and approving business finance applications.

 Aside from assisting in identifying a businesses ability to meet the banks “hidden criteria” for finance applications, it has been proven to be most beneficial in predicting possible tax liabilities before the end of a financial year.  Even where there hasn’t been a tax problem, this service has been invaluable in graphically identifying the key drivers within a business that can assist in turning a loss making or average turnover business, into an extremely profitable one.

 

What is Profit Optimiser? 

 When you feel physically unwell or lacking in performance, you would usually approach your local doctor for a diagnosis and possibly a remedy to your illness by way of a prescription or referral?  Well in business, it is not dissimilar.  Our Business Fitness & Tax Reviews are essentially a ‘health check’ of your current and future financial positions.  It allows us to diagnose your business and offer recommendations and solutions to potential tax problems, cash flow and profit issues, whilst maintaining a focus on the overall improvement in financial performance.

 So why not see how your business checks out today?  There’s a good chance Profit Optimiser has the remedy!

   

How does it benefit my business?    

 Here at Matley Financial Services, we have heard many positive and negative comments about accountants and their performance over the years and we are not referring to the ones about accountants having personality extractions and the like.

 More often we hear comments like…… “my accountant never tells me how I can improve my business” or “I really want to know how can I reduce my tax”.

Well in short, some of the many benefits you receive are:

  • Uncovering the possible causes of current financial difficulties.
  • Plotting future directions through goal seeking analysis.
  • Creating projections, discovering solutions and averting potential disasters with graphical “what if scenarios” such as - What if sales improve by 10%? What is the financial impact on cash flow if I increase my volume? How can I improve my cash flow from -$325,500 to breakeven and have the answers in a second?
  • Find out if your next dollar of sales will have a positive or negative cash flow impact?                    

 Some of the favourable comments we have received from clients following these reviews:

 

  • “I have been wanting this from my accountant for years”

 

  • “now we have a much clearer picture of where we are heading”

 

  • “great, now we know what we need to focus on to turn our business around”

 

  • “can we book a follow up review next quarter to review our progress”

 

How long does it take & how is this service delivered?     

            Due to the extremely informative nature of this review, we allow for an hour and a half to visually deliver our analysis and then discuss strategic recommendations based on the priorities we identify with you.

 Although we prefer to deliver these reviews in our own office, we are more than happy to come to your premises, although in order to get the best value for your money, we would recommend you provide a room that is practical in size, lighting and guaranteed free from interruptions.  You will also need to provide a suitable projection screen.

 Profit Optimiser ‘graphically’ demonstrates the analysis and review utilising modern technology via notebook computer and digital data projector.  This allows the directors, partners or key managers of your business to participate in this process without having to crowd around a computer workstation or muddle through mountains of meaningless papers and reports.

                         Do I receive reports or summaries of this review?

 Yes, most definitely.  Shortly after your review has been conducted, you will receive professionally bound reports clearly outlining and summarising both the initial analysis and subsequent goal seek scenarios undertaken during our meeting.  These prove invaluable when monitoring your performance improvements over the coming periods

 What guarantee do we offer with this service?

 We are so confident that we can advise you of ways to either save you the cost of our fee in tax, or improve the bottom line by the same amount that in the unlikely event we should not be able to do either of these, we will provide you with a credit for the full amount of our fee for service! We will also provide a full credit if you are in any way dissatisfied with this service.

 Yes, this is our guarantee to you and we are both professionally and ethically bound to it.  So what do you have to lose or should it be, how much are you going to save?

 

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INTRODUCING....

Matley Financial Services is growing all the time.  Our newest team member is Samantha-Jo Reading (Jo).  She is Maggie's chief side kick and you will most often hear her lovely voice on the end of the phone should you phone the office.

Jo is in the office to balance the male/female feng shui as Ben has started back with us beginning his third year of university studying to become an accountant.

 

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David with Meg and Dimple
David with Meg and Dimple


December Deliberations

Posted 7 years, 11 months ago by Maggie Waine    1 comment

IRD - GIVE AS YOU EARN

A new voluntary scheme called payroll giving will be available from 7 January 2010.  It's an easy way for your employees to support a good cause.

Give as you earn

Payroll giving allows employees to "give as they earn" by making donations directly from their pay.  They'll receive tax credits of 33 1/3 cents for each dollar they donate, for that pay period.  For example, if they donate $10, they'll receive a tax credit of $3.33.

The choice is yours

Payroll giving is voluntary, so as an employer you have a choice about whether to offer this scheme to your employees.  Further detail and resources to help introduce payroll giving in your workplace are also available on IRD's website, www.ird.govt.nz/payrollgiving.

Other changes to volunteer support

Reimbursements for expenses incurred while volunteering are now considered to be exempt income of the voluteer for tax purposes.  Honoraria are now treated as schedular payments, which means PAYE rules apply to the payments and they're taxable.

In April last year the 5% dudction limit on donations made by companies and Maori authorities was removed.  This means they can now claim a deductions for cash donations they make to donee organisations up to the level of their net income.

These changes recognise the significant contribution made by the charitable and non-profit sectors to the well-being of our communities. 

-Source IRD Communication received 19 November 2009.

 

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STRATEGIC PLANNING - What is it and how can I benefit from it?

As another year draws to a close, we will soon be inspired (or not) to make New Year’s resolutions, and set goals to make changes to ourselves, our businesses and our lives.  I believe Strategic Planning can be a useful tool for us to adopt on a regular basis so that we have a Road Map of where too next.  There is no trick to success it is all about Planning, Doing and Reviewing.  We are usually good at one or two of these actions and the one we are weakest at utlising, is often what limits us in achieving our goals.  The other key point is that a Strategic Plan is an opportunity to set goals, but you also need to be adaptable to changing plans, as “Shift” happens!

So in simple language a Strategic Plan is a Road Map of where you want to travel with your business.  

Businesses succeed when you make time to work on your business and not just in it.

Steps to follow in establishing your own Strategic Plan:

  1.  Vision – make a statement of about 15 words which is a high level enduring statement for your business
  2. Mission – this is the How To achieve the vision (we will work towards our vision by ...)
  3. Core Values – list your top 5 core values for the business (integrity, professionalism, empowerment, etc and review how this is incorporated into your business
  4. Organisational Culture – write down how you staff your business, your customer service ethos, systems you have in place, marketing/incentive programmes, etc.

SWOT Analysis – this is the processes to identify your Strengths, Weaknesses, Opportunities and Threats.  Review your Mission Statement, Core Values, Organisational Culture to identify areas to include in the SWOT Analysis.  When doing this use a white board or big sheets of paper, felt pens, etc – get creative!  Layout the SWOT Analysis like this:

Once you have completed the SWOT analysis you then need to develop 3 key strategies (goals/actions) to address your Weaknesses and Threats so that they can become Strengths and Opportunities (you do not need to focus on all the Weaknesses and Threats, more the most important to you).  Through this review you also may decide to adopt a strategy to further develop your Strength and Opportunities, although the main focus of this exercise is to be fully aware of your Weaknesses and Threats so that you can turn them into Strengths and/or Opportunities through action plans.  Give yourself realistic timeframes to achieve your strategies and also ensure the appropriate staff member is able to manage the actions required of the new strategy.  Also review your Vision to ensure it does not need updating or developing further, often following this type of exercise the Vision can be very different to what is actually happening in the business.  

To start your strategic planning, contact our office or Sharon Jefferies from Future Directions International on sharon@futuredirections.co.nz

 - Source - Sharon Jeffries, Future Directions International Ltd

 

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MONTHLY PAYMENTS

Do you cringe when you receive your annual accounts, just knowing that the accountant's bill is around the corner?

Do you worry where you are going to find the funds to pay the aforementioned invoice?

We can make this easier. 

We have a growing number of clients who choose to have their total accounting fee for the year invoiced out and then pre-paid at a set amount each month. 

This improves their cash flow, and stops the scary  debt collection letters from Maggie about overdue amounts. 

If any further projects are undertaken during the year over and above normal work, these are invoiced separately.

If this sounds like it could be up your alley, please contact us and David will work out your estimated accounting fee for the year.

We send out annual invoices for our monthly paying clients in January.

 

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MATLEY CHRISTMAS HOURS

We are closed over the Christmas and New Year period from 18th December 2009 to 18th January 2010.

If you require to speak to David urgently, please phone his mobile on 029 452 1985 and leave a message.

The team at Matley Financial wish you all a safe and happy Christmas and New Year and look forward to speaking with you in 2010.



Shim