R&D: Get cash back from your tax losses​

If you do research and development (R&D) work, claiming a special tax credit of up to $224,000 this year could ease cash flow problems and hasten your product to market. Here’s how to get the money — plus find out about New Zealand innovators who have used it to get ahead.​What is it?The R&D loss tax credit is designed to help New Zealand’s most innovative businesses when they may be struggling with cash flow — before they’ve taken products to market.Eligible businesses can “cash out” — claim and be refunded — up to $224,000 of their R&D losses in a given tax year.Last year, the credit gave hundreds of businesses early access to their tax losses, improving their cash flow and allowing them to reinvest in their businesses.The good news is you can claim the credit every year, as long as your business operates at a tax loss. You can find out if you’re eligible and apply for the credit on the Inland Revenue website.To read full original article please select here: www.business.govt.nz

Tax incentives for R&D could shape up to be an election issue Title

 Tax incentives have a "positive and significant" impact on research and development spending, according to an International Monetary Fund working paper published this week, but remain contentious in New Zealand with the ruling National party dubbing them an "unknown financial liability" while the opposition Labour Party is still committed to implementing them.While R&D spending is inching higher, New Zealand still lags behind its peers with recent data showing total R&D investment as a proportion of gross domestic product increased to 1.3 per cent in 2016 from 1.2 per cent in 2014. The OECD average is 2.4 per cent. Business investment in R&D was 0.6 per cent of GDP in 2016, still well off the government's aim to lift it to 1 per cent.The IMF paper notes many governments use tax incentives to stimulate private expenditure on research and development, including the majority of OECD countries and other large economies such as China, India, Brazil and Russia. In a recent mission to New Zealand, IMF officials recommended the government lift its support, describing those incentives as "a bit on the timid side".Both National and Labour see innovation as critical to lifting the country's productivity levels, a challenge given its relatively small economy and distance from other markets. National, however, has argued New Zealand's research and development grant system administered through Callaghan Innovation stops companies "gaming the system" by reclassifying spending to qualify for tax credits.To read full original article, please see here: NZ herald​

Protect your business online

Over half of New Zealand businesses experience IT security attacks at least once a year. But many feel they don’t have the right tools and policies to keep themselves safe.

KPIs: the key to measuring success​

Elliot Cooper explains which KPIs deliver the most valuable reports for your industry, and how the ‘Internet of Things’ makes it cheaper and easier to uncover the information you need.  ‘Key Performance Indicators’ is a fancy term for ‘measuring the success of an organisation in achieving its objectives’. What those objectives are depends on what business you’re in. KPIs matter because they are the life blood of effective reporting. So let’s explore the art and science of KPIs. Finding out what these things actually are is a challenge. The trouble is that there are thousands of KPIs to choose from. Business owners and managers mostly struggle to identify the vital few KPI metrics. It’s common to see extremes of either collecting and reporting on a vast amount of anything that is easy to measure; or having little or no KPIs to understand business performance levels. The question that will most usefully guide you is this: ‘What does success look like for me in my business?’ This will likely include both financial and non-financial targets. It’s useful to compare yourself to similar businesses in the same industry. Making year-on-year comparisons will also help you draw meaningful conclusions.To read the full article please click here:  https://nzbusiness.co.nz/article/kpis-key-measuring-success

Provisional tax relief on the way

Provisional tax. Just the very thought of those two words is enough to send a chill up the spine of many a business owner. Difficult to get right and expensive to get wrong, provisional tax has been the source of frustration for many over the years.

Depreciation: How to spread the cost of your assets

Most assets lose their value over time through wear and tear or becoming out of date. Depreciation is used to recognise this decrease in value and spread the cost of assets like computers and vehicles over their useful life.

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