Tax Pooling
No one likes paying tax but it’s a part of being in business. When it comes to paying these taxes, we understand that sometimes it can be hard especially in the current economic climate. This is where Tax Pooling can be useful.
Whutuporo has partnered with Tax Management New Zealand (TMNZ) who offer the tax pooling service. Tax Pooling gives you some flexibility which can help with cashflow, by opting to use this service you can make the tax payments at a later date which suits you and fits into your cashflow.
How Does It Work?
As you know IRD are quick to charge late payment penalties and interest and if you miss your August payment these penalties and interest get charged throughout the year regardless of if you make the other two payments on time.
By using TMNZ you reduce the interest cost as when you make the payment, they pull tax from the “Tax Pool” at the date you need it and make the payment to IRD which then eliminates those nasty penalties and interest at IRD. Yes, you pay a small amount of interest to TMNZ but at A LOT lower rate than what IRD charge.
Missed Terminal Tax Payment 7th April? Struggling To Pay Tax 7th May?
If have missed your Terminal payment which was due early April, this could be a great option to clear this debt with minimal interest and no penalties. Also, with provisional tax three fast approaching in early May and if you are struggling with cashflow then tax pooling can be a good idea.
If you believe tax pooling might be perfect for you please get in touch with our Tax Manager, Samantha ([email protected]), to request a quote or discuss your options.
Whutuporo has partnered with Tax Management New Zealand (TMNZ) who offer the tax pooling service. Tax Pooling gives you some flexibility which can help with cashflow, by opting to use this service you can make the tax payments at a later date which suits you and fits into your cashflow.
How Does It Work?
As you know IRD are quick to charge late payment penalties and interest and if you miss your August payment these penalties and interest get charged throughout the year regardless of if you make the other two payments on time.
By using TMNZ you reduce the interest cost as when you make the payment, they pull tax from the “Tax Pool” at the date you need it and make the payment to IRD which then eliminates those nasty penalties and interest at IRD. Yes, you pay a small amount of interest to TMNZ but at A LOT lower rate than what IRD charge.
Missed Terminal Tax Payment 7th April? Struggling To Pay Tax 7th May?
If have missed your Terminal payment which was due early April, this could be a great option to clear this debt with minimal interest and no penalties. Also, with provisional tax three fast approaching in early May and if you are struggling with cashflow then tax pooling can be a good idea.
If you believe tax pooling might be perfect for you please get in touch with our Tax Manager, Samantha ([email protected]), to request a quote or discuss your options.
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