TMNZ: The ultimate cashflow flexibility tool for your business
In tough economic times, it can be hard for businesses to stay on top of cashflow and juggle their tax liabilities. For companies and sole traders dealing with fluctuating cashflow and provisional tax headaches, there’s an easier way to manage your obligations—tax pooling.
Did you know TMNZ’s tax pool can help you manage your tax by matching your cashflow forecasts with your provisional tax payments? And you can use tax pool deposits as an alternative funding source when cashflow is tight.
How we can help
TMNZ is an Inland Revenue (IR)-approved tax pooling provider, meaning you can use us to pay income tax on your behalf at a time that suits you. We offer greater flexibility over how and when you pay provisional tax.
First, you’ll need to think about your cashflow forecast. If you’re unsure how to put one together, read our cashflow management guide.
Once you’ve got your cashflow projection, we can work together to figure out the best time to pay your provisional tax. From there, all you need to do is tell us your tax amount owed, the date it is due, and how you would like to pay.
When your tax bill arrives, we’ll transfer the amount required to IR on your behalf as a time-stamped payment. IR will treat your tax as if it was paid on time, eliminating the risk of being charged interest or late payment fees. Simple.
A working capital solution
TMNZ’s payments to IR mean you can keep money in your business and use it at the times of the year you’ll need it most. You can top up your payments later into our tax pool at any time.
Tax pooling is a perfect solution for businesses worried about future cashflow and looming obligations. By partnering up with us, you’ll have total control over your tax bill, rather than working around IR’s strict deadlines.
With no more late fees and interest charges from IR to think about, you can get on with running your business. There will be no need to scrape together funds in the middle of holidays or quiet periods to meet IR’s deadlines.
TMNZ can also save you money by avoiding penalties and interest charges if you’ve missed or underpaid tax. We charge much lower interest rates than the penalties imposed by IR if you’re overdue.
We’re a line of credit
Another amazing TMNZ feature is that we can be a line of credit for your business.
If you’ve deposited funds into our tax pool but find yourself short on cash, you can withdraw that money whenever you want to use it as working capital.
If you’ve paid provisional tax into our pool, you’ll have access to a working capital facility up to the value of your deposit. This provides even more flexibility for you and your team to get through a cash crunch and stay on top of debt management.
We can offer much cheaper interest rates than bank loans, overdrafts, or unsecured loans, meaning money withdrawn from our pool is better for you and your business, putting you in a stronger position at the end of the year.
Ready to learn more about the benefits of tax pooling?
Download our guide to Better Cashflow Management for top tips on managing cashflow throughout the financial year.
If you’re ready to take control of your tax and gain access to a valuable line of credit for your business, find out more at by reading our Tax Pooling 101 page to learn more about the full range of benefits of being in our pool.
Then talk to your tax adviser about TMNZ tax pooling to take away your tax management worries.
The 7 May solution
We’re excited to share with you: Tax pooling – The 7 May solution. Discover how tax pooling makes 7 May easier for your clients by reducing pressure and minimising risk. We’ll cover the latest market insights and tax pooling best practices, with real-world examples that show exactly how it works.
What you’ll learn
- fresh market insights
- how to strengthen your clients’ tax approach without straining cashflow
- tips for staying ahead of your clients’ tax needs for 2025-2026
- tax pooling benefits in action through real examples
- Q&A
Who this is for
This webinar is perfect for tax agents and accountants in public practice.
This content is for general information purposes only and should not be used as a substitute for consultation with our team of specialists.
The interest rates mentioned in our webinars were accurate at the time of original recording. Please note that IRD interest rates change over time. Always refer to current official IRD rates for the most up-to-date information.
Book a tax pooling overview for your business
Is tax pooling the right solution for you? Every business we work with has different needs. Book an overview with one of our tax pooling specialists to find out how we can support you.
Boost your business cashflow with smarter tax solutions
In this short, practical webinar see how TMNZ can help to boost business cashflow. We’ll show you how tax pooling (an IRD-approved solution) gives businesses like yours more financial breathing room and smart ways to manage cashflow. Learn from our 20+ years of experience helping 25,000+ NZ businesses to reach their goals.
What is tax pooling?
Tax pooling is a clever way for businesses looking to optimise cashflow and gain more control. By working with us, you’ll have the freedom to manage your tax payments more strategically. Instead of paying IRD directly on a given date, you can pay into the tax pool (of an Inland Revenue-approved intermediary – i.e. us) whenever you like.
Once you have paid off your tax, we’ll transfer the funds from the pool into your account at Inland Revenue, where it will show as paid on time.
What we’ll cover
- What tax pooling is and how it works
- How to get more cashflow flexibility for fueling business growth
- Smarter working capital options to reinvest in your business
- Lower cost of funds options compared to traditional financing
- Case studies from businesses just like yours
- Q&A
Who this is for
This webinar is for business owners, operators and finance professionals ready to take control of their cashflow. Perfect if you want to keep more money working in your business and turn tax time from a stress point into a strategic advantage.
This content is for general information purposes only and should not be used as a substitute for consultation with our team of specialists.
The interest rates mentioned in our webinars were accurate at the time of original recording. Please note that IRD interest rates change over time. Always refer to current official IRD rates for the most up-to-date information.
Book a tax pooling overview for your business
Is tax pooling the right solution for you? Every business we work with has different needs. Book an overview with one of our tax pooling specialists to find out how we can support you.
Utilising future tax to create working capital in the real estate industry
Working scenario: Bay Vista Real Estate
The situation
Emma runs a real estate agency in Auckland with 12 agents. The business experiences significant income fluctuations, with summer months (December-March) typically generating 60% of annual revenue.
The challenge
During the 2024-25 tax year, Bay Vista faced:
- peak income during the summer months
- large commission payments to agents in December/ January
- lower winter income but consistent overhead costs
- two of their provisional tax payments due during quieter months
- a preference for flexibility to withdraw funds if new opportunities arose.
The solution
Emma chose a TMNZ solution which allowed her to:
- delay payment of provisional tax due in August until a time when the business was earning revenue
- deposit $180,000 during the peak summer months:
- $100,000 in December
- $80,000 in January
- earn interest on deposited funds
- maintain flexibility to withdraw funds for a new investment opportunity
- ask TMNZ to allocate tax to the correct payment dates once the business’s income tax liability is known.
The results
Emma continued her business growth plans, while she also:
- earned interest on deposits in excess of what her bank was offering
- better matched tax payments to income patterns
- reduced her stress during quieter months
- protected her working capital during winter
- simplified the tax planning process
- created a tax savings discipline for the business
- rested easy knowing no IRD interest or penalties had been incurred.
Going forward, the business can use TMNZ annually as part of growth plans and cashflow strategy.
Your key takeaway
By matching peak periods with future planning, you can earn interest and create a facility to fund business growth when opportunities arise.
For more on how our tax solutions can help your business, go here.
*This scenario is a fictional example created to demonstrate how tax management solutions work to meet unique circumstances in a range of industries.
Managing uncertainty in tax and costs in the construction industry
Working scenario: Wilson Construction.
The situation
James operates a commercial construction company in Hamilton with 45 employees. The company experiences significant variations in monthly income based on project completion milestones. If clients pay late, this further stresses cashflow.
The challenge
For the 2024-25 tax year, Wilson Construction faced:
- uncertain provisional tax obligations due to uncertainty on when income will be earned
- a large variation between estimated profit ($1.8M) and actual profit ($2.9M) when a project was delivered ahead of schedule in the 2025 financial year, rather than the 2026 financial year as expected
- cashflow regularly tied up in materials and labour costs
- Inland Revenue’s prescribed instalment dates that were not aligned with project payment schedules.
The solution
James opted to manage their tax payments through TMNZ because:
- TMNZ allowed flexible payment dates throughout the year
- the company could make 20+ smaller payments instead of 3 large instalments
- they made payments after receiving project milestone payments
- there was no need to estimate their annual tax liability upfront
- they could change payment amounts at any time based on actual cashflow.
The company made 24 payments ranging from $15,000 to $45,000. They timed payments to follow major project milestone payments and adjusted payment sizes based on project profitability. The total tax paid was $812,000.
The results
James enjoyed better cashflow management, as well as:
- reduced stress around provisional tax deadlines
- no Use of Money Interest charges or late payment penalties
- maintaining a strong working capital position
- better aligned tax payments with business income patterns
- avoiding drawing on construction bonds or expensive bank facilities.
Your key takeaway
Using TMNZ solutions, and seasonal financial planning, tax obligations can be managed to align with business and project outcomes, not IRD deadlines.
For more on how our tax finance solutions can help your business, go here.
*This scenario is a fictional example created to demonstrate how tax management solutions work to meet unique circumstances in a range of industries.
Reducing the cost of funds for a dairy farm
Working scenario: Henderson Dairy Farm.
The situation
The Henderson family operates a 650-cow dairy farm in Southland. They recently invested in a new milking shed automation system and expanded their herd, creating irregular cash flow patterns during the upgrade period.
The challenge
In the 2024-25 season, they faced:
- $280,000 investment in automation equipment
- an additional $150,000 for herd expansion
- a provisional tax payment of $165,000 due March 2025
- expected lower income for the next few months, picking up in October
- bank facilities already used for farm improvements
- needing to maintain working capital for winter feed.
The solution
The Henderson’s worked with TMNZ to:
- finance the full $165,000 provisional tax payment
- secure 5.6% interest rate (vs IRD’s 10.88%)
- structure repayment to align with improved monthly income
- use TMNZ’s tax finance solution as an alternative funding source.
The results
The Henderson’s saved approximately $4,950 in interest compared to IRD and bank overdraft rates. They also:
- preserved their working capital for winter feed purchases
- maintained a good standing with existing bank
- protected their new automation investment
- avoided selling stock at suboptimal time
- better aligned provisional tax payments with their income cycle.
Your key takeaway
By creating a long-term plan to address variabilities in cashflow, you can plan ahead and secure lower interest on funds to cover costs.
For more on how our tax solutions can help your business, go here.
*This scenario is a fictional example created to demonstrate how tax management solutions work to meet unique circumstances in a range of industries.
Managing IR audits and reassessments
This practical 30-minute session is on using tax pooling to your advantage during Inland Revenue tax audits and reassessments. We’ll show you how being proactive provides the best outcome for you or your clients.
TMNZ has the largest pool of historical tax in New Zealand. We can help with any type of tax – PAYE, FBT, GST, NRWT, terminal tax and provisional tax. Our tax pooling experts are here to support you through audits and voluntary disclosures.
What you’ll learn
- How to reduce interest costs and manage cashflow during a voluntary disclosure
- Effective strategies to manage tax disputes over time
- Q&A.
Who this is for
This webinar is perfect for tax agents, accountants and finance professionals.
This content is for general information purposes only and should not be used as a substitute for consultation with our team of specialists.
The interest rates mentioned in our webinars were accurate at the time of original recording. Please note that IRD interest rates change over time. Always refer to current official IRD rates for the most up-to-date information.
Book a tax pooling overview for your business
Is tax pooling the right solution for you? Every business we work with has different needs. Book an overview with one of our tax pooling specialists to find out how we can support you.
Three ways TMNZ’s tax finance solution has supported NZ business success
Since 2003, TMNZ has helped over 25,000 Kiwi businesses to improve cashflow, through our provisional tax solutions. And in the current market conditions, it’s no surprise that we’re experiencing increased demand from businesses looking to finance their 15 January tax payments. Here we cover three different ways, three different businesses have benefited from financing their tax payments through us.
To find out how tax finance can solve your cashflow challenges this summer, learn more here.
Smarter savings in the hospitality industry
The situation
A local hospitality equipment supplier found themselves in an exciting position. As an importer of specialized restaurant equipment, they noticed a significant shift in currency exchange rates that made their European supplier's products much more affordable than usual.
The challenge
While the timing presented a perfect opportunity to acquire high-quality equipment at reduced prices, the business faced a common dilemma. Their provisional tax payment was due soon, and the funds they had set aside for it were exactly what they needed to secure this advantageous deal. It was a situation many business owners face - having to choose between meeting tax obligations and capitalizing on business opportunities.
The solution
Rather than missing out on the opportunity, the business discovered a practical solution through TMNZ. Their approach was straightforward, they partnered with TMNZ to arrange a deferred payment plan for their provisional tax. They utilised their tax payment funds to purchase the discounted equipment and maintained compliance with Inland Revenue while pursuing business growth.
The Results
The strategy proved successful on multiple fronts, they:
- acquired high-quality equipment at below-market prices
- maintained healthy cashflow despite the significant purchase
- increased their profit margins on future equipment sales
- kept their tax obligations in order without penalties
- and enhanced their competitive position in the market.
Your key takeaway
While many small business owners view tax payments as inflexible deadlines, this case demonstrates how working with TMNZ can help manage tax obligations while seizing time-sensitive business opportunities that enhance profitability.
Scaling up in the transport industry
The situation
A transport business landed a fantastic opportunity - a contract supporting a major infrastructure project that could take their company to the next level.
The challenge
The timing created a cashflow squeeze. While winning the infrastructure contract was a milestone achievement, the business needed to expand their trucking fleet immediately to fulfill the contract requirements. Like many small businesses experiencing growth, they had funds set aside for their provisional tax payment but needed that same cash to fund their expansion.
The solution
The business owner took a strategic approach to managing this opportunity and partnered with TMNZ to defer their tax payment for 12 months. They used their provisional tax funds to purchase an additional truck and started servicing the new contract immediately with their expanded fleet.
The results
This decision generated multiple benefits, where the business:
- secured and began working on the valuable infrastructure contract
- increased their fleet capacity and revenue potential
- generated immediate positive cashflow from the new truck
- maintained good standing with Inland Revenue
- spread their tax payment over a more manageable timeframe.
Your key takeaway
Small business growth often requires making quick decisions when opportunities arise. This case shows how flexible tax payment arrangements can help business owners invest in growth while managing their tax obligations responsibly.
Supporting cashflow over summer in the electronics industry
The situation
A small electronics distribution company faced a common seasonal business challenge. Like many businesses in their industry, they traditionally closed their operations during the Christmas period through mid-January, aligning with their major clients' shutdown periods.
The challenge
The holiday season created multiple financial pressures, like zero revenue during the extended Christmas closure. Staff holiday pay obligations were due during this period, and income tax and GST payments were due on 15 January. The business owner was worried about not being able to fully enjoy their family holiday due to financial stress.
The solution
The business owner took proactive steps to manage their seasonal cashflow, and Connected with TMNZ in December. The owner recognized the recurring nature of their holiday season squeeze, and decided that from now on, they would arrange to defer their 15 January income tax payment until April. This maintained their GST compliance while managing cashflow in a smarter way.
The results
This strategic approach delivered both financial and personal benefits, where the owner:
- balanced their holiday season expenses without depleting cash reserves
- maintained staff satisfaction with timely holiday pay
- shifted tax payments to align with their stronger cashflow period
- enjoyed stress-free family time at the beach
- started the new year in a stronger financial position.
Your key takeaway
Many seasonal businesses face predictable cashflow challenges during holiday periods. This case demonstrates how planning ahead and using flexible tax payment arrangements can help business owners manage their obligations while maintaining work-life balance during crucial family times.
For more on how our tax finance solutions can help your business, go here.
How to manage cashflow over Christmas
Everyone loves the middle of summer and spending time with family and friends over Christmas, but it can be a challenging time of year for many small and medium-sized Kiwi businesses.
According to a poll conducted by the Employers and Manufacturers’ Association, more than half of businesses experience cashflow constraints between January and March.
It’s hardly surprising. The period after Christmas is traditionally slow for many companies, with people away enjoying their holidays. Consumers also tend to reduce spending after the expensive Christmas and New Year period.
Businesses can come under pressure for a number of reasons. Earnings will be down if companies shut over the break, while others will feel the pinch if they have paid bonuses before the end of the year.
Considering these facts, it’s understandable that many businesses struggle to manage cashflow and make provisional tax payments on 15 January every year.
Unfortunately, Inland Revenue (IR) doesn’t factor in these seasonal challenges. IR charges taxpayers 5.04% late payment penalties and 10.91% use of money interest (UOMI) if tax is not received on the due date (as at November 2024).
Your options for managing cashflow
What are the best options for businesses that want to manage cashflow and free-up money over the summer?
Tax pooling is IR-approved and can be used to defer provisional tax payments to a time that suits the taxpayer without incurring late payment penalties and UOMI.
This method is cheaper than using many traditional forms of finance. And tax pooling doesn’t affect existing lines of credit. Also, no credit checks or security are required.
The full amount of finance doesn’t need to be paid back if less tax is owed than first thought. The finance arrangement can be easily extended as well.
How tax pooling can help
Say you want to defer a $5,000 provisional tax payment for six months. You would pay TMNZ a one-off, tax-deductible interest amount and TMNZ would arrange the $5,000 provisional tax payment on your behalf.
The interest amount is based on the amount of tax financed and the period of maturity, so in this instance, it would be roughly $205.
The provisional tax payment is held in an IR account administered by the Guardian Trust. Guardian Trust instructs the IR to transfer the tax into your IR account when you repay the $5,000 principal in six months’ time.
The IR treats the $5,000 provisional tax as being paid on time once the transfer is processed. It’s that simple.
Ready to ease your seasonal cashflow worries? Learn more about our tax finance options today.
Find our latest resources on tax pooling and calculating tax using the Standard Uplift method here.
Are you in a tight spot with your company tax?
Fibre Cement Solutions Ltd is a family-run business, owned by Rachel Osborn and Graeme Zimmerman, who bring 25 years of construction industry experience with them. As a leading supplier of fibre cement board in New Zealand, they work with several construction partners across the country and after expanding, they have distribution centres in both Auckland and Christchurch.
A few years into business, Rachel, who managed the finances of Fibre Cement Solutions, found herself in a tight spot. It was the middle of COVID-19, and she hadn’t been advised of their upcoming tax liabilities and deadlines. Like many smaller businesses, especially those in the construction industry, the business was experiencing fluctuating cashflow, despite in their case, fantastic growth. As a result, Rachel found herself struggling to pay the unexpected company tax on time, now facing the risk of hefty penalty from Inland Revenue (IR).
Her new accountant suggested she look into tax pooling and made the introduction to Tax Management New Zealand (TMNZ).
And that’s where TMNZ stepped into help.
TMNZ can work directly with any business (or with their accountant) to find a better solution for provisional tax.
Rachel contacted TMNZ to sign up to their IR-approved service, which gives businesses up to 22 months to pay their company tax without incurring heavy penalties. TMNZ provided Rachel with flexible payment options, charging only a small interest fee for the service, much smaller than IR or bank interest rates. And when her tax payments were made, TMNZ transferred these to IR, as date-stamped payments. Job done.
Rachel's flexible payment plan with TMNZ allowed her to make payments on dates that suited the business’ cashflow, and payment amounts that worked for her budget. This solution allowed the business to stay compliant with IR regulations, avoid fees, and manage tax obligations in a way that better suited the business. Meaning Fibre Cement Solutions could continue to pay staff, meet sales targets and continue to grow.
After her initial positive experience with TMNZ, Rachel now monitors the company's financial position monthly. She loves the option to pay TMNZ instead of Inland Revenue directly, allowing her to reinvest funds into the business for growth. Rachel says:
“If you are ever in a tight spot re paying your company tax like we were, there is an incredible solution that TMNZ offer… It is so flexible and user friendly and keeps you out of trouble with the IRD!”
“The Team at TMNZ are extremely friendly and can explain tax in layman's terms which I really loved. I cannot recommend them highly enough”
To learn more about how TMNZ can help your business manage tax payments and gain cashflow flexibility, contact one of our friendly team members here or speak with your accountant about setting up a flexible cashflow arrangement allowing you to choose when you pay your tax.