Take the guesswork out of provisional tax

Take the guesswork out of provisional tax

Take the guesswork out of provisional tax Lee Stace

GuessworkNo doubt many of you will be paying your first provisional tax instalment in a couple weeks’ time.

As you know, provisional tax involves a degree of guesswork because you base your payments on what you think your income tax will be.

Accurately gauging how much you need to pay on your first provisional tax date can be difficult as it occurs relatively early in the new financial year.

Underpay and Inland Revenue (IRD) will charge you late payment penalties of up to 20 percent and use of money interest (UOMI) of 8.4 percent.

Tax Management NZ’s Tax FINANCE product takes the guesswork out of provisional tax payments.

It lets you defer provisional tax payments to a more convenient time, without incurring late payment penalties and UOMI.

Tax FINANCE is cheaper than many other traditional financing options – rates start below six percent – and because it is not debt, it does not affect existing credit lines.

No credit approval or security is required, and the finance can easily be extended.

If you would like more information about how Tax FINANCE can help you defer your 28 August provisional tax payment, click here.

As New Zealand’s largest and oldest tax pooling intermediary, TMNZ has helped more than 26,000 taxpayers save more than $160 million in IRD compliance costs since 2003.