Our support team at Beany are asked this question frequently so if you've ever wondered.......
The short summary is that if you are a Beany client there is very little additional cost and 3 key advantages - read the blog (I'm a Sole Trader, Should I restructure my business to a Company?) to find out what they are.
What happens when the shareholding of your company changes
This one catches out a lot of people as shareholdings are often altered in periods of major change - business relationships breaking up or new people arriving, deaths and matrimonials - and not everyone thinks about the impact on tax of these changes. Always call us if you're contemplating a change to the ownership of your company - or at the least, read this blog - Shareholding Changes NZ - Take Care on some of the key impacts.
AIM - what is it and do you want it?
This is an option offered by the IRD to help you manage your provisional tax payments - essentially you pay your provisional tax when you pay your GST and if you overpay one period, you can get a refund with your next return! It sounds amazing and the IRD have been spreading the message about it. However, it's not quite as easy as they are making it sound. You cannot file from your Xero file and have to file via our software - the IRD also want us to make up to EIGHT adjustments before filing (such as personal use adjustments, depreciation, any shareholder salary adjustments) so there is quite a chunk of time involved. Your file would also have to be bang up to date with everything reconciled. We do want our clients to have access to this though so please contact us at support@beany.comso we can quantify interest in this scheme.
We may be able to find a Beany tech solution so we can file on your behalf without too much cost. Currently we are charging an extra hour a month to cover the cost of the extra reconciliations and the adjustments - but we're aware that although this is the time it takes, it may be putting some clients off.
Here's a blog (Paying Provisional Tax 'As You Go' in the AIM Scheme) with the pros and cons of AIM.
