Well it is certainly a different world to what it was last Easter, and we know it is an extremely challenging time for everyone. In this bulletin we have pulled together some key information that we think is important for businesses to know.
We know that now, more than ever, will be a critical time for businesses to have current financials available. Businesses need to be able to access funding and taxation planning opportunities to utilise the IRD initiatives in relation to deductions and repayment programmes.
Your Annual Financial Statements will be needed for these opportunities. Over the next few weeks we’ll be sending you a reminder of when your annual accounts are scheduled. If you require these to be brought forward, please contact us.
The team at BFA are working remotely, so you can contact your Client Advisor and Client Manager via email or phone as you normally would. You can find their DDI’s here or just call us on 07 377 6380 and we’ll pop you through.
Wishing you and your families a happy and safe Easter staycation.
Chief Executive Officer
The Government and the Banks have put together the Business Finance Guarantee Scheme which is provided to businesses for urgent liquidity and bridging finance. It allows businesses to borrow between $50,000-$500,000 depending on circumstances and applies to firms with turnover of between $250,000 and $80m per annum.
Loans are for a maximum for three years at between 4-5%. The Government carries 80% of the credit risk and the bank the other 20%. There is a rigid set of criteria and is specific to individual circumstances.
Funding is applied on first come first served basis and there is a cap, so it’s important to get in quick on this one. Get in touch with your Client Advisor and your Bank as soon as possible to discuss if this is right for you.
For more information on the Business Funding Guarantee Scheme and to see if you are eligible, CLICK HERE.
The feedback we've received from the IRD is that we still need to file your returns (including GST and PAYE) at Inland Revenue as normal. This is helping the Government continue to respond to what is happening in the economy.
Inland Revenue will look to write off penalties and interest for businesses unable to pay taxes on time due to the impact of COVID-19. Contact your Client Manager to discuss and they can work with the IRD around this.
If you need to get in contact with the IRD, make every effort to do so online – they are naturally experiencing high call volumes at present with long wait times.
Please note, Inland Revenue are no longer accepting cheques. This may impact some of you if you are unable to go to Westpac to pay over the counter. Internet banking and using myIR are the easiest ways to make payments to the IRD. If you are having trouble making payments, please contact your Client Manager for assistance.
For more information on ways to pay your tax CLICK HERE
The Employer Wage Subsidy scheme has paid out more than $6.6 billion since its inception. If your business has suffered or is projected to suffer at least a 30% decline in revenue compared to last year, for any month between January 2020 and June 2020, you can apply for targeted wage subsidies. Applications are currently taking longer to process due to the number of applications the department are receiving. Rest assured payments are being made as quickly as they can.
For further information on the wage subsidy or if you wish to apply, CLICK HERE. Alternatively contact your Client Manager who can help you.
If you are an essential service and you have essential workers that need to take leave due to COVID-19 health guidance, then you could be eligible for the Essential Workers Leave Payment Scheme.
This scheme offers the same rates as the Wage Subsidy Scheme of $585.80 per week for full-time workers and $350 per week for part time employers.
For more information, CLICK HERE
To check out the Essential Workers Leave Support application form, CLICK HERE
If you have staff and your employee is working on a Public Holiday, you need to pay for the public holiday as you normally would – time and a half for all hours worked, plus credit an alternative holiday.
If your employee is not working on the Public Holiday, pay them what they would have otherwise earned on that day if not for the Public Holiday. If you have agreed a new rate with your employees during the lockdown (e.g. 80% of normal wages) this is the amount you will pay your employee for the Public Holiday.
If you are currently only able to pay the Wage Subsidy amount to your employees, the Public Holiday does not change this.
If you have any questions or would like further clarification on your payment obligations during the COVID-19 lockdown, please get in contact with your Client Manager.