What are the Key Dates I need to be thinking about?
31 March is typically year end for most Individuals, Companies and Trusts. This is when you will have finished your tax year. Your income tax return is due on 7 July each year.
If you have a dedicated Accountant, you may have an extension until 31 March the following year to file your tax return.
Even though you get more time, the longer you leave it, the harder it can be to recall events or find documents. The earlier you prepare, the better.
If you are on a tax agency with an Accountant you have extended time until 31 March the following year to file your tax return. Although your get more time, remember the longer you leave it to prepare your information the harder it can be with the passing of time to recall particular events or go back and request information required for your tax return. In general, the earlier you can get onto preparing information for your accounts the better.
You can start preparing your information from 1 April. At Shortland Chartered Accountants, they usually follow up with clients in May, once banks and financial institutions have issued their year-end summaries.
How can I help reduce my Accounting costs?
Here are some of the things you can do during the year to make it as smooth as possible at year end.
Keep all your documents together. Have all your information together in one place where you can find it. Provide all the information requested in one go to your accountant where possible. Where your Accountant asks for a list of items don’t drip feed it. This can add time and risk that information is missed causing delays and potential additional costs.
Use a separate bank account for your property. Make sure all rent and related payments go into that account.
Respond quickly when your accountant asks questions. The fast replies will help contain cost. Where cost can sometimes be added is where you leave preparation late into the year. You may not remember what a repairs and maintenance cost related to from many months previous or be able to obtain copies of receipts from a contractor so easily.
Meet with your accountant at least once a year. You should have a close working relationship with your Accountant. Your accountant should understand your situation, goals, and what’s going on with your properties to ensure sound insightful advice.
Main tips when providing information to your accountant
- Request a checklist from your Accountant of the things needed.
- If you own a Company or Trust, you’ll need a Profit & Loss Statement and a Balance Sheet. Your Accountant should be checking that the full accounts are correct and reconciled.
- Keep copies of settlement statements for your properties.
- If you refinance loans, remember, to get copies of the loan statements through to repayment and closure. It can be a very difficult and time consuming process obtaining this information at a later date.
- If you use a property manager, the year-end rental statement is all that’s required.
- Keep your notes succinct. Your accountant doesn’t need a full play-by-play of each repair — although those are always interesting 😊.
- Summarise major events from the year. A brief outline can help your accountant understand your situation.
- If your property is held in an LTC or Trust, generally your personal tax return is prepared at the same time. Have your personal documents ready too.
- LTC or Trust – If preparing financial accounts for an LTC or Trust, generally personal tax returns will also be prepared. Make sure to keep your personal information and provide to your accountant at the same time.
- Reply promptly to questions and enquiries. This will help your Accountant complete your tax returns most efficiently.
We’ll be sharing more valuable insights from Shortland Chartered Accountants in our next article — including what expenses you can claim, how chattel valuations work, and key updates on the Brightline test and ring-fencing rules.
In the meantime, if you need help with your tax return or have a question about accounting or property tax, book a free consultation with Shortland Chartered Accountants here.
This article is for general information only. You should always seek personalised, professional advice before acting on any of the material.
