LTD Company - Tax Return

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Forums › Finance and wealth management › LTD Company - Tax Return

mahsud82

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#311890 23-Feb-2024 22:19

Hi,

I have opened a limited company (1 employee only i.e me) in April 2023 and since that I have 2-3 transactions only and the total amount earned is ~$3300 NZD. Now I want to file a tax return and also going to close my company. I have been asking accountants online for quotes. They are quoting $600 to $800 as fees to file a tax return which a rip off. That is too much considering the amount I have earned and the tax return should be very simple and straight forward. Can someone please suggest a reasonable account or any tips/suggestion how to file the tax return my self. I don,t know how to file it.

Kiwifruta

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#3199345 23-Feb-2024 23:47

You can file a buisnes tax return here https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/income-tax-for-companies/file-a-companies-income-tax-return-ir4

mahsud82

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#3199349 24-Feb-2024 01:17

Hi,

Thanks for the link. I have tried it before but it does not provide a link for IR4 tax return. Please refer to screensnap shot.

Brumfondl

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#3199392 24-Feb-2024 11:02

Have you asked IRD about this?

Stu

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#3199395 24-Feb-2024 11:21

As above, talk to the IRD. They'll make sure the right things are turned on for your profile for you to do what you need to do. They're usually very helpful.

People often mistake me for an adult because of my age.

Keep calm, and carry on posting.

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mahsud82

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#3199413 24-Feb-2024 12:22

Thank you all for your reply and suggestion. I will follow it up with IRD.

Inphinity

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#3199489 24-Feb-2024 13:58

mahsud82:

I have opened a limited company (1 employee only i.e me) in April 2023

According to the companies office, your registered your company in August 2021. I suggest you talk to IRD, they will be best placed to help you. The accountancy costs you've been given are fairly normal, even on the low end, but at the trading level you've indicated you're right it's not worth it.

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mahsud82

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#3199560 24-Feb-2024 18:13

My company was opened in 2021 but was not active till early 2023. I will try to file tax return on my own after talking to IRD.

alikat

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#3200049 26-Feb-2024 09:17

I did a skim of this because I'm about to hit a staff meeting so I'll keep it ranty but shortish.

Accountants are expensive because it takes six years of study to become Chartered, along with a three year mentorship. You pay for our knowledge of the law and tax minimisation. What you've been quoted is cheap for a company return. Most places I've been at are at least double that. Even for my own micro-agency, I'd be charging about that, and I have no overheads.

What you think is simple and straightforward is completing returns correctly and knowing which associated schedules to file, how to minimise that tax and what happens to the assets and liabilities of the company should you wish to close it down. That is a minefield in and of itself, for which you probably do need professional advice, and I'm not putting that here. Still, I'm guessing as you made a profit, you'd need to consider dividends and a short form liquidation to wind up the company. Depending on how you did your accounts.

Additionally, are you aware of your responsibilities as a director under the companies act? Thats also what you're paying an accountant for.

You can send the IRD secure mail and ask them to open the 2024 IR4 for you as you'd like to file.

alikat

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#3200232 26-Feb-2024 13:59

mahsud82:

My company was opened in 2021 but was not active till early 2023. I will try to file tax return on my own after talking to IRD.

This is why you won't see the 2024 IR4 return - you've told the IRD your company is non-active. You'll need to tell them it is active again. That was in the instructions of the non-active declaration letter "you must tell us when it is no longer active"

mahsud82

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#3200375 27-Feb-2024 08:06

Many thanks for the reply. I will follow it up with the IRD. lets see how it goes.