The Government recently announced the following changes will be made to the Small Business Cashflow (Loan) Scheme:
They will increase the interest free period from one year to two years,
They will increase the criteria for spending the loan. Currently the loan can only be used for core operating costs. This will be broadened so that the loan can be used, for example, on capital expenditure.
They are also increasing the application period, pushing it out to 31 December 2023, an extension of three years.
ACC recently announced a change to the way they invoice those that are self-employed.
The main change is that instead of a provisional and final invoice, those that are self-employed will now only get one invoice from ACC, after the levy year has finished and based on their actual earnings.
Some of you may have received an email from IRD advising that they will be contacting Tradies and encouraging them to include ALL income through their income tax and GST returns. This is a timely reminder to everyone that IRD is cracking down on ALL "cashies" and IRD has various ways of finding out about these jobs.
Undeclared cash jobs do have negative consequences resulting in tax penalties and/or a criminal conviction. You are required to keep all readable invoices and GST tax receipts for 7 years (80 years if you are a trust). This means that relying on the original is probably not an option. If you would like to discuss alternative record keeping options, please do get in touch.