Whilst we were all prepared for a possible resurgence of Covid-19, it does not make the process any easier!
The two questions we're getting asked frequently are:
1. Should I pay my Tax?
2. What are my next steps to plan for?
3. Am I eligible for the latest Wage Subsidy?
We'll cover these in this article, but as always please do not hesitate to reach out to our team if you need any specific advice or help as we move through this next phase of lockdown.
Should I pay my Tax?
The next tax payment is due on 28 August.
We would highly recommend paying into Tax Traders (Tax Pooling) if you currently have the cash. We recommend this over paying directly to the IRD. It gives the flexibility to get the cash back should you need it, and gives more flexibility about when you pay your tax - it will help you smooth your cashflow.
If you don't have the cash available, then we would recommend that we arrange finance on your tax for you. This reduces the interest you pay, and avoids all penalties.
If you have any question about Tax Traders, or would like to set it up for your business, flick us an email.
What are my next steps?
Your next steps should be based around a sound financial plan. You may have gone through this already during our first lockdown, or you may have been lucky enough to not have been heavily impacted the first time; but the next period may be more difficult.
Most business now have a fair idea of what Level 2/3/4 mean for business. It's now about forecasting for the different scenarios based on your past experience. Then, with the forecast you can see the impact on your bank balance and future position.
Not only will it give you a better understanding of how you business is looking during and post-second wave, but it will give you piece of mind and clarity on your next steps.
If you are in need of guidance, or someone to take lead on your business forecasting please ask.
Government funding through WellingtonNZ is available to help with this work. If you are interested in applying for funding please reach out and we will put you in touch with the right people.
What are my next steps?
The third round of wage subsidies is available. Here's the short version:
- Your previous wage subsidies must all have been paid out
- It covers wages for a two week period
- You have to prove a 40% reduction in turnover for a 14 day period between 12 August and 10 September
- The same rules apply as for the previous subsidies (you need to keep your employees employed, the amounts are the same etc)
- Applications are open from 21 August to 3 September
Extended: Wellington NZ Funding
WellingtonNZ has been allocated funding (up to $5000 per business) from the central Government’s stimulus package, to connect business owners to expert advice and services.
There are other business support resources available through the Regional Business Partner Network, including Business Mentoring Support and working with a Business Growth Manager.
What does the COVID-19 Business Advisory Funding cover?
- Financial advice and planning to help business owners get through COVID-19
- Business advice to help model cash-flow, staffing levels and understand financial plans considering their new business models
- Business coaching to help business owners get through COVID-19
Convex Accounting are proud to offer advisory support through the Wellington NZ funding scheme. If you'd like to more or express your interest please don't hesitate to get in touch with one of the team
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