Independent Carbon Brush in Whanganui says TMNZ is a “real godsend”. Here’s how we’ve helped this husband and wife business pay income tax on its terms.
The question Sara Owen of Independent Carbon Brush asked her accountant in 2010 sums up how valuable TMNZ has been in helping her and her husband Steve manage their Whanganui business’ income tax payments.
“He said he knew about you guys. My next question was: ‘Why the hell didn’t you bloody tell me about them earlier?’” she remembers.
Independent Carbon Brush has been using TMNZ for nearly six years to alleviate the worry and stress caused by income tax payments, and the impact these can place on cashflow.
“The IRD seem to want payment very quickly. It’s the age-old story: When they owe you money, you seem to wait forever but when you owe them money, they want it right away,” says Sara.
“If you haven’t got cashflow, then your business can’t keep going. You’ve saved my bacon on many occasions. You’re a real godsend.”
Independent Carbon Brush is operated by Sara and Steve, and specialises in manufacturing carbon brushes (devices found in motors that conduct current between stationary wires and moving parts).
It has clients across New Zealand, ranging from small electrical companies to power stations and steel manufacturing plants.
Their income has fluctuated for the past 16 years. It is difficult to gauge peak and quiet periods because they are often dictated by what is happening in their clients’ world.
“It’s very up and down. I’ve never come across such a fickle business in my life,” says Sara.
All of this can have an impact on income tax payments.
“When you’re doing well, you get stung by GST, so the money you put aside for tax gets wheedled into GST. You then get to terminal tax – and they call it terminal tax for a reason – and you go: ‘Holy, where am I going to get that from?’ You’ve put money aside, but it is never enough.”
TMNZ gives Independent Carbon Brush the freedom to pay tax at a time that matches its cashflow, not when the taxman tells them to.
“TMNZ provides breathing space that suits our business. We know we’ve got big jobs coming in and once they do, it takes the pressure off our cashflow. I can then pay you guys and everyone is happy.”
Removing the angst around income tax means Sara and Steve are able to focus on growing their business.
“It just peace of mind and I’m always keen on anything that is going to work in my favour. Let’s face it, the IRD has never really worked in my favour.”
No wonder Sara was quick to fire that question at her accountant when TMNZ was discussed all those years ago.