COVID-19 suport reminder
May 22, 2020
Just a reminder that there remain support programs to assist you as we resume working more normally under Level 2
The wages subsidy remains available to apply for, and there is the second subsidy that will become available 12 June. It has different qualifying criteria than the first subsidy and covers a shorter period. The application process is the same.
Government Small Business Cash Flow Scheme
To assist small businesses with cash flow issues because of loss of business and the difficulties accessing the Loan Guarantee Scheme, this lending has been made available. Inland Revenue will administer the payments and repayments of this scheme. Applications will be open from 12 May 2020 to 12 June 2020 inclusive. Eligible businesses and organisations are entitled to a one-off loan. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee.
Flexibility within Inland Revenue
Legislation has been passed giving IRD greater flexibility to write off late payment penalties and interest on late payments caused by effects from COVID-19. IRD also has flexibility to provide special tax codes for PAYE deductions for contractors whose income has been reduced. For businesses that are anticipating a loss in 2021 or incurred a loss in 2020 can use that loss to offset profits they made the year before. In other words, they can carry the loss back one year to the preceding income year. This can be done before the loss year return is filed. Changes in thresholds for paying provisional tax and for writing off assets have both risen temporarily to $5000. There are other items in the tax system for assistance.
On-going discussions are being held over commercial lease relief, assistance for tourism and hospitality operators and other measures.
If you have any specific concerns you can contact us to see what there may be to assist you. A review of your own businesses response to changed environment would also be useful.
Contact us today for your no-obligation consultation.