With a new tax year often comes a new set of rules or changes to existing tax laws that all businesses need to be aware of, two of the key issues coming effect in 2023 relate to GST and minimum wage changes;
GST Laws
New GST laws come into effect in April. The Government has modernised rules for invoicing and record-keeping, and the requirement to use tax invoices is being replaced by a more general requirement to provide and keep certain records known as ‘taxable supply information’.
From April, you no longer need to keep a physical copy of a tax invoice, a credit note or a debit note. Your taxable information supply can be digital – included in your accounting software, in your transaction records or in contractual information.
New wording – you no longer need to label your invoices as ‘Tax invoice’. The new wording is ‘taxable supply information’, but you don’t need to specify that on any invoices. It’s just the Inland Revenue’s way of explaining that certain information needs to be included on the documentation – you don’t need to make any alterations.
The changes were necessary to make e-invoicing legal, so without any actual paperwork or even a PDF moving around, your system-to-system invoices are still valid.
We’re here to help
If you’re not sure which records you need to keep, just give us a call or drop us a note. We can chat with you about how these changes might impact your business, and how you can use e-invoicing to reduce your risk of invoice fraud. Get in touch!
Minimum Wage Increase
- The adult minimum wage increased to $22.70 per hour on 1 April.
- The starting-out and training minimum wage rates have also gone up to $18.16 per hour.
Employers who pay their employees by the day, week, or fortnight, or pay them an annual salary, need to make sure employees are paid at least the minimum wage appropriate to the basis on which they are paid. Additional time must be paid at least $22.70 per hour.
Keep systematic records
Make sure you keep records of hours worked, wages paid, and all holiday and sick leave and make sure your records have enough detail to show that you are complying with requirements such as minimum wage. If you have agreements with employees about accommodation and other benefits, make sure these are documented. Your wages records should document wages payable before any deduction is made for the agreed value of accommodation or of goods or services.
Managing costs
Cashflow is a perennial concern for businesses and the latest changes may be a timely prompt to take another look at your cashflow plan and your cost controls. When there are added stressors on cashflow, it can help to rethink your costs. To do it effectively This involves more than just keeping an eye on outgoings. It’s about looking at all the moving parts of your business to see if your systems (or lack of) are costing you unnecessarily.
Talk to us, we are here to help.