Tax tip: Instead of topping up P3, buy tax now and save

Tax tip: Instead of topping up P3, buy tax now and save

Tax tip: Instead of topping up P3, buy tax now and save Lee Stace

http://www.dreamstime.com/-image28845038Clients with 30 June balance dates who are considering topping up their 28 July (P3) provisional tax can save money now.

If they top up when they pay their final instalment of provisional tax on 28 July, they will be charged use of money interest at 8.4 percent from the date of underpayment until 28 July.

Purchasing the underpaid tax for 28 November, 2013 and 28 March, 2014 now will immediately reduce this interest cost to 6.08 percent (5.58 percent for corporate members).

Tax Management NZ has a plentiful supply of 2014 tax to save your clients money should they require tax at earlier provisional tax dates.

Should your client be making a P3 payment of more than $100,000, please talk to them about paying this through tax pooling.

This makes available to them the full benefits of tax pooling.