FAQs Archive | Page 15 of 17

Q: Why do I need to know about my tax obligations?

Knowing your tax obligations in New Zealand is super important because if you are in business and not taking care of your tax properly, you can get into hot water with the taxman. The Inland Revenue can apply interest and penalties if you get it wrong. But if you keep good records and stay on top of your tax, you can get some sweet tax and sleep easy at night!

Q: When do I need to pay my tax?

The dates when tax payments are due depend on a range of things including what you did last year. With Afirmo, we sort out your deductions and can pay your tax for you if you choose, so you don’t need to worry about missing these dates. For more information, check out our tax payment due dates . HEADS UP: If you’re starting a business as a sole trader, you don’t need to pay tax on your profits until the end of your first year in business. Other integrated tax platforms will take your tax before you’re due to pay it and earn interest on your money – not us though, we’ve got your back.

Q: Can I join Afirmo at any point in the tax year?

Yes, you can join any time in the year. You can catch up with your accounting and tax once signed up. We’ll give you a hand with any transactions that need to be added for earlier periods.

Q: Can I switch from another tax tool provider?

Yes you can! Afirmo will request your tax records and any tax overpayments from your previous tax tool provider, and either refund the repayments to you, or add them to your Afirmo issued BNZ trust account for you to save for future tax bills. You choose!

Q: Can I use another tool for accounting and Afirmo for tax?

Yes, we know that some accounting tools don’t allow income tax to be dynamically calculated and an IRD return prepared. You can use any accounting tool for your business accounting and Afirmo for your business tax management (for example Xero for accounting, and Afirmo for tax if this is your preference). Check out our full comparison of Afirmo vs Xero here .

Q: How do I know if I need to register for GST?

Businesses with an annual turnover of $60,000 or more are required to register for GST. Also in some cases it may be better to register early and claim GST on your expenses. Our friendly team of professional accountants will take you through it!