The winter months can wreak havoc with your cashflow.
So much so, in fact, that sometimes the last thing you want to do is pay provisional tax.
Some of those with a March financial year-end can probably relate to this situation, as they will pay their first instalment of provisional tax for the 2015 income year on 28 August.
If you are in this boat and want to reduce your cost of debt or better manage your cashflow, you can use our Tax FINANCE product to shift this payment to a date that suits you – without incurring IRD use of money interest (UOMI) and late payment penalties.
There are several other benefits of using Tax FINANCE:
• It is cheaper than many other traditional forms of finance.
• No security or credit approval is required.
• Because it is not debt, it does not affect existing credit lines.
• The finance arrangement can be easily extended.
• You do not need to pay for all the tax if you do not need it.
An example of how much it costs
You only have to pay a tax-deductible interest amount of $147 to defer a $5000 provisional tax payment due on 28 August for six months.
Use our online calculator to find out how much it will cost you to defer your 28 August provisional tax payment.