Recent changes to tax that might help
Wednesday, June 10th, 2020
In the last few months, a number of changes have been made to help businesses during this time. For more detail on each of the below, get in touch with your DPA expert for advice.
The provisional tax threshold has increased from $2,500 to $5,000. This means, if you expect to have a tax bill of less than $5,000 this year, you don’t have to pay instalments through the year.
The small asset depreciation threshold has increased to $5,000 for assets purchased from 17 March 2020 to 16 March 2021. This means you can write-off the full cost of assets you buy for less than $5,000 during this time, which will reduce this year’s tax bill.
Depreciation on commercial and industrial buildings is now allowed. This could reduce this year’s tax bill.
The Government has announced its intention to change the loss continuity rules to make it easier for a business to keep its losses on the books when changing ownership. This might make it easier to attract new investors.
Research & Development tax credit changes have been brought forward which means those businesses conducting R&D last year might be able to reduce their tax bill this year.