Pay income tax how and when it suits you
Tax Management NZ (TMNZ) provides an IRD-approved service that gives small businesses greater flexibility to do tax on their terms by letting them choose how and when they make their income tax payments.
Upcoming provisional tax payments
TMNZ provides a couple of payment options to help you manage upcoming income tax payments.
The burden large provisional tax payments can have on your cashflow can be eased by paying off what you owe in flexible instalments, where you can pay what you can, when you can.
This wipes late payment penalties and reduces IRD interest costs.
If paying an upcoming provisional tax payment in instalments does not suit, you can also put in place an arrangement with TMNZ to defer paying the full amount of tax due to a time that suits you, without having to worry about IRD interest and late payment penalties.
While this is another way of matching provisional tax payments to your cashflow cycles, it also allows those looking to reinvest in their business a means to free up working capital.
Rates are cheaper than many forms of traditional finances such as an overdraft or unsecured loan. This method does not affect existing lines of credit and approval is guaranteed.
Underpaid income tax
In the event not enough provisional tax has been paid or prior years' tax has been reassessed, you can purchase the tax you owe through TMNZ to eliminate IRD late payment penalties and reduce interest costs by up to 30 percent. TMNZ operates a Tax Pool which allows you to acquire tax overpaid by other taxpayers.
Your purchase can be paid off in one lump sum or instalments.
More breathing room
Paying income tax for the current year or one just completed through TMNZ means you have up to 75 days past your terminal tax date to settle your liability. In the case of reassessments of prior years' tax you have up to 60 days from the reassessment notice.
TMNZ is a registered tax pooling provider with IRD, operating under legislation set out in the Income Tax Act 2007 and Tax Administration Act 1994.
Do not hesitate to give us a call if you want to know more about the TMNZ tax pooling service and how it can provide tax payment flexibility.