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Thread ID: 89215 2008-04-24 12:29:00 Any accountants out there? george12 (7) PC World Chat
Post ID Timestamp Content User
662165 2008-04-24 12:29:00 It's coming up to time to do my last GST return of the financial year.

What I would like to know is, can I claim certain things for the whole year on this return that I haven't bothered to include in other returns, namely vehicle expenses (I share a vehicle with my business) and the %-of-house thing.

I ran a logbook for the required 90 days and calculated 51% of my travel to be business. I drive about 15,000km a year.

Q1) Is it possible to claim for expenses which occured before the period of this return which I haven't included in one of the previous returns of the year?

Q2) Are there any non-cash vehicle expenses (eg depreciation) that I'm allowed to claim in my GST return in any way

Q3) I haven't calculated the household costs and done a costing based on the percentage of space my business area uses in precious returns. Should I have? Have I wasted and lost the money by not doing so or can I do it all in this return?

Q4) I spend about $60 a month on cellphone calls. Do I have to keep record of which calls are business and which are personal to be allowed to claim this, or can I estimate (about 75% is business).

Q5) Anything else I should know? 		george12 (7)
662166 2008-04-24 12:30:00 Claim ignorance, you will then get paid without need for work or a rebate. R2x1 (4628)
662167 2008-04-24 12:44:00 only have one telephone line rental that is used both for business and private purposes you:


may claim GST on 50% of the cost. Show 50% of the rental in Box 11 on your GST return. This applies whether the line is commercial or domestic.

Mobile phones

If you have a mobile phone that is intended for business use, you may claim GST on the total set-up cost.

If your mobile phone is also used for private use, you can claim GST on the following running costs:

* total fixed cost of running the phone, and
* the cost of the business calls.


Also, look at Direct Attribution here:
www.ird.govt.nz 		beeswax34 (63)
662168 2008-04-24 12:46:00 Adjustments for home office expenses

If you use an area set aside in your family home for work purposes, you may be able to claim GST on part of the costs of running your home. You must:

* set aside an area principally for business use, and
* keep full records of all expenses you wish to claim.

Note

You can claim the adjustment either annually or on a period-by-period basis.
How to calculate an adjustment for home office expenses

To calculate your GST adjustment you need to work out the percentage of the area that is used for work against the total area of your home.

The table below explains how to calculate an adjustment for home office expenses and provides an example.

Scenario: Erana has an office set aside in her private home. The office is 10 square metres of a 100 square metre house. Therefore, the business percentage is 10%. The total house expenses including GST for the taxable period were $1,000, including:

* rates $500
* insurance (house) $200
* electricity $300

Step What to do Example
1

Work out the value of the business (taxable) use.


$1,000 x 10% = $100
2

Divide the amount from Step 1 by 9. This is your GST adjustment.

* Show this GST adjustment on your GST adjustments calculation sheet (IR372) under "Business use of private/exempt goods and services for annual or period-by-period adjustments".
* Transfer the totals to Box 13 on your GST return.


$100 divided by 9 = $11.11

www.ird.govt.nz
www.ird.govt.nz 		beeswax34 (63)
662169 2008-04-24 12:54:00 Of course, if you are an accountant, ignorance is included in the sheepskin. :o R2x1 (4628)
662170 2008-04-24 13:03:00 Sweet. Got that sorted.

Now, there are two depreciation rates for my car. If it carries people (up to 12 seats) it's 21%, if it carries light goods (GW under 3.5 tonne) it's 13.5%.

Can I use the higher one? I carry myself, and the occasional computer..... 		george12 (7)
662171 2008-04-24 13:12:00 Ask yourself, "Who made the rules, and who for?"
You are around 2.8M$ p.a. short of qualifying. 		R2x1 (4628)
662172 2008-04-24 13:58:00 Sweet. Got that sorted.

Now, there are two depreciation rates for my car. If it carries people (up to 12 seats) it's 21%, if it carries light goods (GW under 3.5 tonne) it's 13.5%.

Can I use the higher one? I carry myself, and the occasional computer.....

Well, the thing is that again the onus is on you to prove that the car gets used mainly for one purpose or the other.

If its mostly to move people then you'll be able to claim the higher rate but then are limited to how much GST you can claim back and vice-versa.

Best thing would be to contact IRD about this particular question. Did the other stuff help or do you need any more info? 		beeswax34 (63)
662173 2008-04-25 01:35:00 I think I have it about sorted. I use the car to drive around to clients etc far more than to transport things.

And there were no problems with doing it as an annual adjustment.

Now I just have to do the time consuming part .... 		george12 (7)
662174 2008-04-25 08:37:00 I still think you should get an accountant rather than get opinions off the internet.

For many years I did without one, but they are experts on what you can claim so often what you pay in fees is offset by tax savings. 		dolby digital (5073)
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