Are you a business owner trading via a limited company? Did you know that you can legitimately claim for private goods and services paid for by your company?
Yes you can, and it doesn’t matter what you claim - flights, a hotel bill, a present for your kids (or yourself), a new outfit - they’ll all OK. One small catch, the amount you spend cannot exceed $300 per quarter per owner - the exemption is not deducted first.
Do bear in mind that the threshold is $300 per quarter per employee or $22,500 per employer over the last 4 quarters for all employees. Further, the de-minimis threshold applies across all associated entities and not on an entity-by-entity basis.
OK, it’s not a huge amount, but it all helps in these tough times right? And why pay them a cent more than you need to to I say?
If you need help with your taxes contact Nick on 021 225 6425 or email nick@abnr.co.nz.
