Sterling Accountants Limited : Chartered Accountants, Christchurch, New Zealand

• Relationships in Business
• Top Tips for Business success
• July 2011 Rates instalment notices
• Rates remission

• 30^th September LAQC Deadline
• Employees using incorrect tax code
• Snow leave?

Relationships In Business

The other day I bumped into an old family friend who, after 60 years of marriage, was buying his wife flowers to say “I love you”. He has done this every couple of years since they were first married. It reminded me that even though she knows she will receive them, albeit not expecting them, that he is doing it to reinforce his commitment to her and as he says, “it is important to maintain great relationships”.

Just as it is crucial to maintain and build domestic relationships, so too it is critical to build and maintain business relationships. Well they are critical if you are serious about being in business. Too often we get caught up in the day-to-day running to realise the importance of the relationships with not only our customers, but also our suppliers and employees.

When was the last time you contacted your customers to find out how they are doing?

Have you ever simply said ‘thank-you’ to your suppliers and employees for their continued support of your business?

Just like the man who buys flowers for his wife on a regular basis, so too we can all make time in our calendars to regularly tell our customers, suppliers and employees how much we appreciate them.

Continue to build and maintain these business relationships and this will help you through even the most difficult times and contribute to the overall success of your business.

Top Tips For Business Success

1.     Be Passionate about your business and success will follow.

2.     Surround yourself with an experienced team.

3.     Support your staff and they will support you.

4.     Begin with a strong business team and follow it.

5.     Ensure you have the necessary finance to build your business.

30 September Deadline for Existing LAQC’S

The legislation that was passed in December 2010 created a new tax entity, the look-through-company, to be used for income years starting on or after 1 April 2011.

If you are an existing LAQC, and you have not been contacted by us yet, please call as we may need to apply to become an LTC by 30 September 2011.

July 2011 Rates Instalment

The latest instalment for rates invoices will be sent to property owners from the 18th July 2011.

Where a building has been demolished prior to 30 June 2011, the rating valuation for that property should have been adjusted. While the council is working hard to ensure all records are up to date following the earthquake, there may be some instances where the rates invoice does not reflect this issue.

If you think this is an issue for your property, please call the Council on 941 8999 so they can update their records to amend your rates invoice.

Rates Remission

The Council adopted rates relief policies following the 4 September and 22 February earthquakes to offer assistance to those worst-affected by the earthquakes. The policy was extended in the Annual Plan 2011/12 to offer:

·          40 Per cent rates remission for residential properties that are unable to be occupied.

·          30 per cent rates remission for businesses located within the cordoned Red Zone.

·          30 per cent rates remission for businesses outside the Red Zone that cannot be occupied because they are adjacent to dangerous buildings.

To apply for a rates remission under this policy, or find out more about your eligibility, call the Council Call Centre on 941 8999 or 0800 800 169.

 By using the correct tax code, your employee is more likely to pay the correct amount of tax and/or make the correct amount of student loan repayments throughout the year and not end up with tax to pay.

 Sometimes your employee may choose the incorrect tax code and you will receive a letter advising what tax code your employee should be using. If you receive one of these letters, you’re required by law to change the tax code to the one that is shown. Please contact us so we can assist you in correcting this.

Courtesy of Business Tax Update

Snow Leave?

 Is an employee entitled to be paid if they cannot come into work as a result of the weather or disaster? It depends on the employment agreement between the employer and employee.

 In this situation, neither party is necessarily at fault. When it comes to payment for time away from work in a situation where either an employee can't get to work, or the employer can't open their business, both parties need to look to the employment agreement between them to see if this type of situation is covered. If it is not addressed in the agreement, then it would be up to both parties to talk about it and agree what the time away from work will be classed as. For example, agreeing to take annual leave, a paid day off, an alternative holiday or taking leave without pay.

 Source: Department of Labour