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Accounts team update

Using your home for the business

Many people who run a small business use an area in the home for work purposes. You do not have to have an area specifically set aside for the business. If you're doing this, you can make a claim for the area so long as you keep a full record of all expenses you wish to claim.

If there isn't a separate area for the business the apportionment will need to take into account criteria such as the amount of time spent on income-earning activities and the area used at home.

IRD numbers for property sales

All vendors and purchasers of property other than their main home must now provide an IRD number as part of the land transfer process.

Non-residents

Offshore buyers must provide a New Zealand bank account number before they can obtain a New Zealand IRD number. All non-resident buyers and sellers must provide their tax identification number from their home country, along with current identification requirements such as a passport.

Family trusts

Where a family's main home is owned by the family trust, the trust is not exempt from providing an IRD number. It's quite common for a trust to own the family home, protecting the family from business or other relationship property risks. Up till now family trusts haven't needed IRD numbers unless they operated a business or owned rental properties. Now, when the family home is transferred into the trust or when the trust buys or sells property, the trust needs an IRD number. Trustees' own personal IRD numbers aren't acceptable.

The new requirements also affect changes of title. So, if a trustee dies or retires and the new trustee's name needs to be registered on the property title, the trust needs an IRD number to register the change.

XERO Price Changes

Since 2006, Xero has developed a product which puts your financials at your fingertips. Xero helps advisors like Accounted4 work together with small business owners like you. Over time, Xero hasn't just been tweaked – it's been transformed. With hundreds of product updates, powerful new features and integrations, and game-changing partnerships, Xero delivers customers the best global solutions at a local level. It's evolved into New Zealand's most-used accounting software and is recognised by Forbes as the most innovative growth company globally. Two years in a row.

To reflect the scale of its evolution and the advancements made, Xero has announced it is increasing its prices from 1 December 2015 and these will be reflected in all XERO fee plans from that date. Please contact your Accounting Manager if you have any questions on this.