Sort 7 May provisional tax

Sort 7 May provisional tax

Sort 7 May provisional tax Lee Stace

A number of your clients will have terminal tax for the 2016 tax year due on 7 April.

Now, if that was not bad enough, Inland Revenue (IRD) will be expecting another payment from many of them a month later: their final instalment of provisional tax for the 2017 tax on 7 May.

Little wonder people feel like they are the meat in the tax sandwich in April and May.

Things, of course, can get much worse if your clients do not pay provisional tax on time. IRD will charge interest and late payment penalties.

Tax Management NZ (TMNZ) can help clients pay 7 May provisional tax on their terms while eliminating late payment penalties and reducing interest costs.

The payment options below might be useful if clients will experience cashflow constraints after paying their terminal tax.

Pay 7 May provisional tax in instalments

If your client would rather pay their 7 May provisional tax off as they go, TMNZ provides a way for clients to pay via instalments.

There are no set instalment amounts. Clients can pay what they can, when they can, and have up to 75 days past their terminal tax date to settle what they owe.

Paying this way can reduce IRD interest costs by up to 30 percent and eliminates late payment penalties.

Pay 7 May provisional tax at a later date

Clients can also defer full payment of 7 May provisional tax to a time in the future that suits them, without incurring IRD interest and late payment penalties.

The upfront finance fee is much cheaper than most other traditional forms of finance.

Approval is guaranteed and the fee tax deductible.

Clients can defer payment of 7 May provisional tax for up to 12 months.

Be sure to mention TMNZ’s payment options when you discuss cashflow management and tax planning with your clients.

If you are an existing user, sign in to transact right away. Those new to TMNZ can register, email or phone 0800 829 888 to get a quote.

Lee Stace

Lee Stace is the PR and Content Manager at Tax Management NZ.

All posts by: Lee Stace