1. Go through your debtors

Identify those who you think you may not pay you and write these off as a bad debt. It does not mean that you have to stop chasing the debt, but why pay tax on income you may not receive.  A bad debt is defined as a debt that a prudent person would consider unlikely to be paid

2. Purchase items you need

For example, make sure you fill up your company car, on or before the 31^st March 2016.

Say you buy $100.00 worth of petrol, potentially you can claim the GST back ($13.04). The remaining $87.00 potentially there is a tax deduction saving a further $26.10 in tax ($87.00 at a tax rate of 30%)

3. Clear Account Payable

If you are on a GST cash basis, with a 31 March year end, if you pay the invoice prior to the 31 March  you can claim that GST back at the end of April. If you pay the invoice in April you will not be able to claim the GST back until the end of June. 

4. Obsolete Stock

Go through your stock, if there is obsolete stock, take it to the tip and write it out of your stock take. This will also reduce your tax. 

5. Fixed Assets

Review fixed assets and write off any items that are no longer used or have been discarded. If you need to buy assets, such as a car, purchase it before 31 March, rather than April – you may be able to claim the GST back and obtain a month’s depreciation as well.

6. Staff Bonuses

If you pay your staff bonuses, pay these within 63 days of balance date and you can write these off against the previous year’s tax.

7. IRD Debt

If you are unable to pay your tax on time, contact us now. We can achieve amazing things if we have time. Reminders will be sent, however it is your responsibility to pay your tax on time.

Disclaimer

This document is intended as a general guide only; it is not an exhaustive list nor detailed explanation.