Tax Made Easy

21/07/2026

Ever noticed how ordering a "pint" in NZ is a total gamble? 🍻

The Spinoff ran an article showing that NZ has zero legal definition for a pint.

Back in England, you get legally guaranteed 568ml. Over here? Weights and measures only recognize metric, so a "pint" is literally just guesswork. One pub hands you a 480ml glass, the next gives you 425ml, and a craft spot pours 330ml. I only have to walk 10 minutes to get a small glass of beer for the price of a small boat.

It made me laugh, but it’s a lot like how a lot of small businesses price their work: completely on guesswork.

If you don't know the exact breakdown of your time, true overheads, and hidden admin costs, your margins shrink fast. You think you’re charging for a full glass, but you're only keeping a half.

Three quick checks for your numbers this week:
Audit your time: Invoicing 5 hours for a 10 hour job cuts your rate in half.
Account for the froth: Admin time and software subs add up. Bake them into your rates.
Know your baseline: Know what it costs to keep your lights on every hour you work.(Don't be the cheapest)

If your pricing is built on guesswork, you will always wonder where the margin went.

Worth a think next time you're at the pub!

https://thespinoff.co.nz/kai/18-07-2026/why-doesnt-new-zealand-have-a-standard-size-for-a-pint-of-beer?hl=en-NZ

19/07/2026

Burying your head in the sand with IRD doesn’t work.

If you have overdue tax debt or missing returns, the strategy of ignoring it and hoping it goes away is officially out of time.

IRD just launched a massive targeted campaign specifically aimed at people who have been ignoring it.

They are not just sending another automated letter. They will try to call you twice, and if you ignore them, they are skipping the paperwork and going straight to enforcement.

That means bank deductions, where they legally take the money straight out of your account, and visits in person from the Community Compliance team.

Look, I used to work for Community Compliance at IRD. The people on that team are usually good, reasonable people who want to work with you to find a solution. But make no mistake, when they turn up at your door, that is officially your absolute last chance to sort it out before things get messy.

They will look at payment plans and relief options, but you have to front up and do it yourself.

If you need to get your outstanding returns and books up to date so you actually have accurate numbers to show them, get in touch with us. Just keep in mind that while we get your numbers sorted, we do not manage or negotiate the actual debt repayment on your behalf. That part is between you and IRD.

You can read the full update and look at your options directly on the IRD website here:

https://www.ird.govt.nz/updates/news-folder/2026/overdue-debt-and-returns

18/07/2026

My son and a crew of Westlake Boys have spent the last few weeks burning the midnight oil, hand making soy candles from scratch.

They bought the ingredients, sorted the packaging, designed the labels, ran the advertising, the whole lot.

Tomorrow morning, they are putting their hard work to the test to see if this new start up can really catch fire. They have poured their hearts into the business, so it makes perfect scents to come down Shore side and support them.

Let's just hope the crowds spark up early, because I am only the Uber driver dropping them off at dawn and I do not want them coming home feeling completely melted by lunchtime.

The Details:
Where: Browns Bay Market
When: Sunday, from 6:00 AM

Don't be a Wick..come buy a candle 😉

12/06/2026

"Hey, can you help me set up my Hnry account?"

​I have been getting this exact request a lot through my website contact form lately.
​The short answer is no, I cannot.

​There is a lot of confusion out there right now, with people thinking Hnry, Xero, and MYOB are all just different brands of the same basic software. They are completely different concepts.

​Xero and MYOB are software tools. They keep track of your financial records, but anyone can log in and use them on their own without or with an accountant. Personally, I work primarily with Xero.

​Hnry is an automated accountant app. Because they act as the actual accountant, their system is locked down. Outside accounting firms cannot log in to manage your account or adjust your tax strategy.

​This post is purely to clear up that technical boundary. If you are trying to figure out which platform actually fits your business structure, I just put together a full, jargon free guide on the blog comparing Xero, MYOB, and other tools in the NZ market.

https://taxmadeeasy.co.nz/blog/f/the-kiwi-business-guide-xero-vs-myob-vs-hnry-vs-the-rest

08/06/2026

Home Office Expenses.

When it comes to annual accounts time, there are a few main areas IRD will check.

Home Office.
Motor Vehicle Claims.
And Entertainment.

These are the ones that people tend to overclaim on.

See the link here for a guide on Home office expense claims, I've even attached the sheet we use here to calculate it.

Perminant link
https://taxmadeeasy.co.nz/home-office

Blog Page
https://taxmadeeasy.co.nz/blog/f/working-from-home-how-to-actually-claim-your-expenses

Because it should be!

04/06/2026

Mileage Rates 2026

Inland Revenue has released the vehicle rates for the 2025-2026 income year. Check the image below for the exact breakdown per vehicle type.

The Breakdown:
Tier 1 Rate: Covers both fixed and running costs (insurance, depreciation, fuel, maintenance, etc.). Use this for the business portion of the first 14,000 km travelled (including private use).

Tier 2 Rate: Covers running costs only. Use it for the business portion when total travel exceeds 14,000 km.

Don't forget the logbook rule:
To claim these, you need a valid 90 day logbook to lock in your business use percentage. These need to be redone every three years. IRD can and do disallow claims if you have no valid logbook

You can find a free template here https://taxmadeeasy.co.nz/links-and-resources

14/05/2026

Block, delete, and carry on: My tips for dealing with bullies.

Today is Pink Shirt Day. You will see a lot of be kind posts, but if you have ever been the target of a bully, you know kindness alone does not always stop them.

I have seen it in kitchens, on shop floors and in offices. It is usually the quiet undermining, the credit stealing, or the victim act they play when called out. It is exhausting and designed to make you feel alone.

Here is how I handle it:

Get everything in writing. In business, bullies love misremembering conversations. Follow up chats with an email immediately. No receipts, no proof.

Stop giving them a reaction. They want you flustered because it gives them control. Stay factual and boring. Without an emotional win, they move on.

Cut them out and stay visible. Use the block button. You do not owe anyone a seat at your table. Keep your good people close so the bully cannot isolate you.

Do not play their game. They will try to provoke you then play the victim. Do not stoop to their level. If you refuse the drama, they usually trip over themselves.

Finally, stand up for your coworkers and those around you.

Pink Shirt Day is a great reminder, but real change comes from a culture where people feel safe. Do not just wear a shirt, make a change.

P.S. I should have ironed the shirt... 🙃

28/04/2026

Facebook Advertising: Are You Missing Out on GST Claims?

If your business is active on Facebook or Instagram, you are likely spending a fair amount on advertising. But are you handling the tax side correctly? Since April 2019, Meta (the parent company of Facebook and Instagram) has been required to charge 15% GST on ads sold to New Zealand based businesses.

How to Check and Fix Your Setup
To ensure your invoices are compliant and claimable, follow these steps:

Verify: Log into your Meta Business Manager, go to 'Billing', and open a recent invoice. Look for the 15% GST line item.

Update: If it is missing, go to 'Payment Settings' and then 'Tax Info'. Enter your legal business name and your GST number exactly as they appear at IRD.

Confirm: Ensure your business address is explicitly listed as New Zealand.

Click Verify

Meta is the most common platform but the same rules apply to other major digital providers. I recommend performing the same review on:

Google Ads
LinkedIn Ads
TikTok for Business
Microsoft Advertising

Each of these platforms has its own independent billing system. You need to ensure your NZ GST details are correctly entered into each one individually to avoid missing out on those 15% credits. (the list above is not the full list, it should be any platform you are using)

https://taxmadeeasy.co.nz/blog/f/meta-advertising-are-you-missing-out-on-gst-claims

20/04/2026

IRD just dropped a massive reminder about crypto and for many it is going to be an expensive wake-up call.

I have been saying for a long time that the "wild west" days of crypto in NZ were numbered. While people have been online bragging about their gains and acting like the blockchain is a ghost town, IRD has been quietly building their data.

The numbers are staggering: 355,000 users and $36 billion in transactions identified.

With the new Crypto-Asset Reporting Framework (CARF), there is nowhere left to hide. IRD is now receiving data from overseas exchanges and matching it directly to tax returns. If you have traded, swapped or sold crypto, they likely already know about it.

The first batch of letters is currently going out to those on automatic assessments. If you are not on that list but "forgot" to tell your accountant you have some, you might want to remember fairly quickly.

If you have been "forgetting" to declare those gains, now is the time to organise it before they come knocking. Once the audit starts, the options for voluntary disclosure and the leniency that comes with it disappear.

Crypto is property. Gains are income. It is that simple.

If you are sitting on a pile of transactions and are not sure where you stand, get it sorted now. Better to deal with it on your terms than theirs.

https://www.ird.govt.nz/media-releases/2026/crypto-investors-urged-to-get-tax-compliant

07/04/2026

There is a lot of talk in the accounting world right now about a major shift in how shareholder loans are taxed in New Zealand. If you use a shareholder current account to manage your drawings, you need to know where this proposal actually stands.

IRD has released data showing that overdrawn shareholder accounts are more common than most people think. For the 2024 tax year, about 5,550 companies had outstanding shareholder loan balances of more than 1 million dollars each.
The concern is that these loans provide long term access to company profits without the immediate personal tax cost that applies to a salary or a dividend. Essentially, IRD sees this as an unintended tax advantage that needs to be tidied up.

The Original Proposal
The consultation paper released late last year proposed a significant shift from a "manage it over time" system to a "repay it or get taxed" system. The main points were:

The 12 Month Rule: Any new loan made after 4 December 2025 that is not repaid within 12 months of the end of the tax year would be treated as a taxable dividend.

The 50,000 Dollar Threshold: This rule would only kick in if the total company lending to all shareholders is 50,000 dollars or more.

Existing Balances: Loans made before 4 December 2025 are intended to stay under the old rules, provided there is no new lending added to them.

The Roadblock
Since the proposal dropped, there has been major pushback. Experts have pointed out that a strict 12 month limit is extremely complex and could force businesses to refinance at the worst possible times. Not every loan is about avoiding tax; many owners use drawings simply to smooth out their personal cash flow when business income is lumpy.

As of March 2026, reports indicate that parts of the current government are opposing the 12 month rule. The argument is that it adds too much cost and red tape for small businesses. While the most aggressive parts of the plan are currently hitting a wall, IRD remains focused on what happens when a company closes down while still owing large amounts in shareholder loans.

What This Means for You Now
Whether the law changes or not, a heavily overdrawn current account is a business risk. It can lead to Fringe Benefit Tax if interest is not handled correctly, and it always makes your year end accounting more expensive because I have to spend time untangling your personal life from your business transactions.

If you are not 100% sure how these accounts work, you should read the link. https://taxmadeeasy.co.nz/blog/f/shareholder-current-accounts-%E2%80%93-what-are-they

Review Your Balance: Look at how your account has moved over the last two years.
Set a Salary: Pay a regular amount into your personal account and do your personal spending from there.
Keep it Separate: If it is not a business expense, do not use the business card. Period.