Conlan’s Tax Tips for the New Financial Year

01 April 2025
Conlan’s Tax Tips for the New Financial Year

As the new financial year kicks off, it’s the perfect time to reset, review, and plan for success. Whether you’re just starting or have been in business for years, taking proactive steps now can save you time, money, and stress down the track.

Some quick-fire tips for the new financial year:

General

  • Automate where possible – AI-driven tools can reduce manual input and make year-end compliance a breeze.
  • Cloud accounting and tax software is a must
  • Keep good records – maintaining accurate records is essential for year-end tax compliance and is also required by Inland Revenue. Cloud storage and digital document management is the way to go (Xero also has built-in cloud storage).

Tax-specific

  • Additional income? You are required to declare any additional income you receive, such as rental income. Therefore, it’s good practice to track this income throughout the year.
  • Entertainment expenditure – Ensure this is tracked separately in your accounting software to allow easy adjustment during the preparation of your annual accounts.
  • Fixed asset register – Review your fixed asset register to identify assets that have been sold, are no longer in use, or have been scrapped. A deduction can generally be claimed for these.
  • Fringe benefit tax (FBT) – Now is a good time to consider whether any benefits have been provided to employees that may be subject to FBT, such as motor vehicles and insurance policies.
  • Home office – Do you use a part of your home regularly for work? If so, it may be worth considering whether you can claim a deduction for home office costs.
  • GST – If you’re not GST-registered but expect your sales to exceed $60,000 in the next 12 months, you should consider whether you need to register for GST.
  • Low-value assets – An immediate tax deduction is available for assets purchased for $1,000 or less. It’s good practice to track these separately to allow easy identification during year-end compliance.
  • Provisional tax – The final instalment of the 2025 provisional tax is due 7 May 2025 for those with a standard March balance date. It may be worth considering what your provisional tax obligations are and making an early start on your 2025 tax compliance.
  • Terminal tax – Have you remembered your terminal tax for 2024 (due 7 April 2025 for most taxpayers linked to an agency)? This will ensure no penalties and interest!

Feel free to reach out to Conlan (conlan.spence@pkfkendons.co.nz) or your PKF Kendons adviser if you have any questions or need tax advice.

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