A brief update from the IRD’s website about receiving RSP.

Payments received under the RSP are not subject to income tax. Expenditure funded by payments under the RSP is not deductible. GST-registered businesses will return GST on payments received under the RSP. The payment must be used to cover business expenses such as wages and fixed costs. The business will claim GST on these expenses following the normal rules.

For more information go to: https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment

If you don’t already have a code set up in Xero for your resurgence payments, contact our office and we will set one up for you.