Resurgence & COVID support payments
The COVID Support Payments (CSP) are now open for you to apply. This is completed through your myIR login. To apply you will need:
A 40% drop in revenue over a 7 day period between 16 February 2022 & 4 April 2022 compared with same week (e.g. Monday – Sunday) in 5 January 2022 & 15 February 2022 or 2021. Note you will need to put in numbers into the application so get this ready before you apply
A New Zealand Business Number
A list of your employees and their IRD numbers (yourself included!)
how many and when can you apply
There are 3 CSP’s you can apply for. These all close on 5 May 2022, with the opening dates below:
First payment – 16 February 2022
Second payment – 8am on 14 March 2022 for the period beginning 7 March 2022 and ending 4 April 2022.
Third payment – 8am on 28 March 2022 for the period beginning 21 March 2022 and ending 4 April 2022.
amount you can get
These are paid at the increased rate of $4,000 + $400 per employee
Tax on the subsidy
GST – Yes this subsidy is subject to GST. If you are GST registered you need to include the payment in your GST returns. You can then claim your normal expenses for GST that you pay from this.
Income Tax – In your head treat this as taxable income and claim the expenses. Technically speaking the subsidy isn’t taxable, but the expenses you pay from it aren’t deductible either (we will do this at year end for you). Both ways work to the same taxable total!
Reminder of old resurgence subsidies & GST
A final note on the prior resurgence subsidies. These include GST. If you are GST registered you should have included these as income in your GST returns. The rational being the same as the CSP above. We have seen a number treated with no GST and then have to give the bad news.