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End of year financial planning

It is that time again… 31 March…

Time waits for no one and again we find ourselves at the end of another financial year. It is now time to get your records in order while things are fresh in your mind. Trying to remember what happened in the last financial year six months down the track can prove difficult so we recommend collating your information as close to year-end as possible. For a comprehensive look at your structure contact us at Business Like for tax consultancy and advisory for your business. 

The added benefit of getting your financials sorted early is that you can appraise the last financial year in a timely manner, make any changes that need to be made and move forward in the right direction.

Some things to consider as you prepare your end of year information:

Bad Debts

To claim a tax deduction for bad debts, the debt must be:

  • Bad; and
  • Physically written off on or before balance date

The above rules mean you must be able to support that the debt is bad, that is, you have made reasonable efforts to collect the debt before writing it off.


We live in an electronic age where most people pay by direct credit but if you do find yourself in possession of cash make sure it is banked before the 31st of March. If you run a petty cash system, then make sure this is reconciled and accounted for on the 31st of March too.

Fixed Assets

Review the fixed asset register to ensure the assets exist and to identify assets that are no longer used to claim a deduction for the remaining adjusted tax value of the asset.

Assets can be written off if they are no longer used but have been disposed of, provided:

  • The asset is no longer used by you in your business to produce income; and
  • Neither you nor an associated person intends to use the asset in a business or in the future to derive gross income; and
  • The cost of disposing of the asset would be more than the proceeds from disposing of the asset; and
  • The asset is neither a building nor an asset being depreciated using the pooling method.

As a result of COVID-19, there have been revisions to the low-value asset threshold. Assets costing $1,000 or less (if the item was acquired on or after 17 March 2021), or $5,000 (if the item was acquired between 17 March 2020 and 16 March 2021) qualify for an immediate deduction. This is provided:

  • They do not form part of some other asset; and
  • They are not purchased from the same supplier at the same time as another asset and the total is more than their relevant threshold.

Home Office Expenses

If you use part of your home as an office you are entitled to claim a portion of things like your rent or interest on your mortgage, rates, home and contents insurance and power. Please complete the checklist on our website.

Individual Taxes

After 1 April, Inland Revenue will be automatically issuing pre-populated income tax returns. Where the individual confirms or Inland Revenue is satisfied the information is correct, a refund or tax bill will be automatically calculated. Due to the risk of error, it would be useful to have any pre-populated income tax returns reviewed by us prior to confirmation.


If you keep a logbook for your vehicle, make sure it is up to date and complete on the 31st of March.

Mixed-Use Assets

The tax treatment of real estate (mainly holiday homes), watercraft (with a purchase price of more than $50,000) and aircraft (with a purchase price of more than $50,000) where the asset is used for both private use and income-earning use and is unused for 62 days or more per year is subject to the mixed-use asset rules. Under the rules, certain losses will be quarantined, and a deduction may only be claimed when the asset derives positive net income.

If you own a mixed-use asset, then please complete the checklist on our website.

Provisional Tax

The final instalment of 2024 provisional tax for 31 March balance date taxpayers is due for payment on the 7th of May 2024.

Terminal Tax

Terminal tax for the 31 March 2023 tax year is due for payment on the 7th of April 2024. We do have the ability to extend this payment date to June 2024 via Tax Management NZ. Contact us to know more about this service. 

Trading Stock

A physical stock take on or as close to the 31st March is required.

In general terms, trading stock, including work in progress, is valued at either cost using a cost valuation method or market selling value when this is lower than cost.

The cost valuation methods include cost, or where permitted, replacement price, or discounted selling price.

To claim a deduction for obsolete or slow-moving stock, it should be physically disposed of on or before 31 March 2024 or valued at market selling value if this is lower than cost.