Balancing your Imputation Credit Account
We’re here to make tax a bit easier. This webinar that cuts through the complexity of imputation credits and shows you how to manage your ICA when you’re using tax pooling.
What you’ll learn
- how to better manage your ICA when using tax pooling
- case studies that bring the concepts to life
- get your questions answered by our tax experts
Who this is for
This webinar is perfect for accountants and finance professionals in medium to large businesses dealing with Imputation Credit returns.
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.
Five top tips for paying 28 August provisional tax
Are you due to pay 28 August provisional tax?
For most business taxpayers, your first instalment of provisional tax for the 2025 tax year is coming up. It’s important to pay what you owe on the due date. Inland Revenue won’t hesitate to charge steep interest and late payment penalties if you don’t.
If you’re a business owner or operator, here are five useful tips to ensure you’re ready to pay the first provisional tax payment for the year on the 28 August due date. For agents, you may also wish to share these tips with your clients to help them prepare.
1. Assess your cashflow
Now’s the time to look at the money coming in and going out of your business.
Cast your eyes over your accounts receivable report to see which customers owe you money. If required, ask them if they can sort their bill earlier. Conversely, see if you can buy more time if you owe suppliers money.
If cashflow is tight or you have a better use for the money, keep reading. There’s an option that lets you pay 28 August provisional tax when it suits you.
2. Be aware of the fish hooks
If you pay less than $60,000, you are what’s known as a safe harbour taxpayer. You won’t be charged interest by Inland Revenue if you pay your provisional tax late. But, you will be charged late payment penalties. You can find out more about safe harbour rules here.
3. Know your methods to calculate 28 August provisional tax
It’s important you are aware of the different methods available to calculate your provisional tax payments. For more information about the provisional tax methods available to you, see our Provisional Tax Guide.
4. Consider using tax pooling
An Inland Revenue-approved tax pooling intermediary such as TMNZ can assist if cashflow is tight. Working with us allows you to pay 28 August provisional tax at a time and in a manner that suits you, without incurring Inland Revenue interest or late payment penalties. You can defer the full payment to a date in the future or pay off what’s due in instalments.
TMNZ will date-stamp tax for you in a special trust account with Inland Revenue on your behalf. You pay TMNZ at the agreed future date or as and when it suits your cashflow, and the tax will be transferred to your account with Inland Revenue, and treated by them as being paid on time.
5. If in doubt, consult a professional
Do you have any questions about 28 August provisional tax? Seek the advice of an accountant or tax advisor. They can determine the best provisional tax calculation for your business and help you manage your payments and cashflow.
If you wish to learn more about the provisional tax payment flexibility TMNZ offers businesses, get in touch.
Get provisional tax peace of mind with TMNZ
The 28 August provisional tax payment date doesn’t need to cause stress. TMNZ offers flexible, IR-approved payment solutions that give you more control over your cashflow—without the risk of late payment penalties or use-of-money interest. Explore our full 28 August payment guide or talk to TMNZ today to find out how we can support your business this tax year.
Information in this article is correct as at 31/7/25. You should consult with your tax advisor concerning all tax matters. Read our Terms and Conditions.
First year of trading and provisional tax
What are a taxpayer’s provisional tax obligations in their first year of trading?
This is a question we receive a lot. In fact, there is certainly a lot of confusion out there.
As most know, their first year of trading is not tax-free. However, when income tax is due and payable depends on a taxpayer’s tax liability (called their residual income tax (RIT)) for the year and if they are a ‘new provisional taxpayer’.
So, with that in mind, we explain below how the provisional tax rules work for new business taxpayers.
First year of trading: RIT is less than $60,000
If a taxpayer’s residual income tax (RIT) is less than $60,000 in their first year of trading, they won’t need to pay provisional tax that year. Instead, tax is payable as a lump sum on their terminal tax date, which for most taxpayers will be 7 February or 7 April of the year after this tax year.
Use of money interest and late payment penalties will be incurred if their tax bill isn’t paid by the due date.
If the RIT is more than $5000 in their first year of trading, they will be a provisional taxpayer for the following year.
First year of trading: RIT is $60,000 or more
Inland Revenue (IR) will charge interest if taxpayers fall into the ‘new provisional taxpayer’ category and you don’t make provisional tax payments.
The new provisional taxpayer criteria are different for individuals and companies/trusts.
An individual qualifies as a new provisional taxpayer if:
- Their RIT for that tax year is $60,000 or more
- Their RIT in each of the four previous tax years was $5000 or less
- They stopped receiving income from employment and started to receive income from a taxable activity during that tax year.
A company or trust qualifies as a new provisional taxpayer if:
- Their RIT for that tax year is $60,000 or more
- They did not receive taxable income from a taxable activity in any of the four previous years
- They started receiving income from a taxable activity during that tax year.
Please take note of the different criteria for individuals and companies/trusts. This catches taxpayers out.
When is the first provisional tax payment due?
Inland Revenue will charge interest (see the current rate here) on the number of provisional tax payments a taxpayer could have made in their first year of business if they meet the new provisional taxpayer criteria.
Of course, that number depends on the date on which their business starts trading.
For someone with a 31 March balance date, refer to the table below:
| If the first year of trading starts… | Then the number of provisional tax instalments payable is… | And the due dates are… |
| Before 29 July | Three | 28 Aug, 15 Jan and 7 May |
| 29 July – 15 Dec | Two | 15 Jan and 7 May |
| 16 December+ | One | 7 May |
These dates will differ if your balance date isn’t 31 March or if you file GST returns on a six-monthly basis.
First provisional tax payment – The basic amount
So, what happens if you meet the new provisional taxpayer criteria in your first year of trading?
Well, put simply, Inland Revenue will divide your tax liability (RIT) for the year by the number of instalments you were liable to pay per the table above.
For instance, say your business starts trading on 1 October and your RIT for the year was $69,000.
IR will charge interest from two provisional tax payment dates: 15 January and 7 May. The amount on which interest will accrue at each due date will be $34,500.
Reducing exposure to Inland Revenue interest
Taxpayers may wish to pay provisional tax in their first year of trading to mitigate their exposure to IR interest if they expect their RIT to be $60,000 or more.
If they are an individual or a partner in a partnership and meet certain criteria, they may also get an early payment discount of 6.3%. This is provided they make voluntary payments before their tax date and haven’t been obligated to pay provisional tax in the current or previous four years.
Reduce IRD Interest with TMNZ
Worried about use of money interest on your first year tax bill?
If you have missed making a provisional tax payment, or wish to delay when you make the provisional tax payment, TMNZ can help. TMNZ can delay the payment of your provisional tax, or help you with any missed payments. The interest cost to you is well below Inland Revenue’s interest rate. Talk with TMNZ to stay on top of your tax obligations without the stress.
This article has been written in general terms only. You should not rely upon this to provide specific information without also obtaining appropriate professional advice after detailed examination of your situation.
Using smart tax solutions to drive growth in the construction industry
The situation
Leighs Construction, a proudly New Zealand-owned and operated company, is renowned for delivering complex, high-calibre construction projects that leave a lasting legacy for local communities. As they continue to grow, managing tax obligations amidst fluctuating project phases proved to be an ongoing challenge.
The challenge
In the construction industry, taxable income can vary significantly depending on the phase of projects. For Rebecca the Group Finance Manager of Leighs Construction, this variability made it difficult to forecast and plan for tax obligations ahead of time. Traditionally, they paid taxes directly to the IRD, but this rigid approach lacked the flexibility needed to align payments with their cashflow.
The solution
Leighs Construction turned to TMNZ for a smarter, more flexible approach to their provisional tax payments. Key benefits included:
- saving money on IRD Use of Money Interest (UOMI)
- ability to time-shift tax payments forward or backward, depending on project performance and cashflow needs, without IRD penalties
- confidence in TMNZ’s trusted and IRD-approved solution for managing their tax obligations
- access to expert tax guidance and support, ensuring peace of mind during tax time.
The results
With TMNZ, Rebecca and the team at Leighs Construction have transformed their tax management process. The company now enjoys:
- cashflow flexibility, allowing them to pay taxes when it best suits their business
- significant savings on UOMI, freeing up working capital for reinvestment
- confidence in their tax compliance, supported by TMNZ’s expertise.
- ability to focus on growth knowing their tax obligations are under control.
Your key takeaway
For businesses in the construction industry, tax flexibility can unlock working capital and reduce financial stress. By partnering with TMNZ, Leighs Construction has gained the tools and support needed to navigate tax obligations with ease, enabling them to focus on building a brighter future for their business and the communities they serve.
For more on how our TMNZ’s solutions can help your business, go here.
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.
How TMNZ partners with accountants to simplify tax for growing businesses
The situation
Sauvruth Sanjay is the Senior Accountant at Orb360, a small-to-medium-sized chartered accounting firm based in Auckland and Wellington. They specialise in helping SME businesses with compliance, tax advisory, dispute resolution, and franchise consulting. They’ve built a reputation for delivering tailored solutions for their clients’ financial needs, including navigating complex tax obligations.
The challenge
Many of Orb360’s clients struggle with:
- Compliance issues: Filing tax returns on time and avoiding IRD interest and penalties.
- Cashflow pressures: Juggling multiple tax obligations simultaneously (e.g., GST and provisional tax), creating strain on cashflow and preventing reinvestment into their operations.
These challenges are especially significant for SMEs, where resources are stretched, and missing deadlines can have costly consequences.
The solution
Over a decade ago, Orb360 partnered with TMNZ, to provide their clients with flexible, tailored provisional tax solutions. TMNZ offers:
- Flexibility: Clients can pay provisional tax on their terms, aligning payments with their business cashflow cycles, not just IRD’s deadlines.
- Cost savings: No IRD penalties and interest, freeing up funds for other priorities.
- Peace of mind: Integrated systems ensure clients never miss tax deadlines, reducing stress for both clients and accountants.
TMNZ also supports Orb360 during IRD audits and reassessments, providing an additional 90-day payment window to ease financial pressure during tax disputes.
The results
- Improved compliance: Orb360’s clients now consistently meet tax deadlines, avoiding penalties and maintaining good standing with IRD.
- More cashflow flexibility: Businesses can manage large tax bills without sacrificing operational growth, reinvesting funds into their companies.
- Stronger client relationships: The partnership with TMNZ has strengthened Orb360’s reputation as a strategic partner for business growth.
- Operational efficiency for accountants: TMNZ’s dedicated account managers and responsive support team have streamlined workflows for Orb360’s accountants, allowing them to focus on client growth.
Your key takeaway
For small and medium sized businesses, managing tax compliance and cashflow can be overwhelming. By partnering with TMNZ, Orb360 has provided their clients with a strategic financial planning tool, ensuring cashflow flexibility, cost savings, and peace of mind. This collaboration has not only helped clients thrive but also supported Orb360’s growth as a trusted advisor.
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.
Growing a career and team in Christchurch: Penny Ineson’s leadership story
When Penny Ineson joined TMNZ 10 years ago, she had an ambitious 90-day plan that included starting a Christchurch office. A decade later, that plan has come to life. With a recent promotion to Head of Advisor Relationships – South Island, Penny now leads a team of four, aiming to ‘take the South Island by storm’ in tax payment solutions.
How are you feeling about your new leadership role?
I am so excited! It’s a little nerve-wracking because, while the investment is in the South Island, it’s also an investment in me. But I always feel valued and supported by TMNZ to work hard and do my job well. Throughout my promotions (Business Development Manager, Senior Client Relationship Manager, and Regional Manager), I’ve received ongoing support, great communication and connection with the wider team , and flexible working hours, which have allowed me to manage maternity leave, complete my Bachelor of Commerce in Accounting, and most recently, secure office space in Christchurch.
What’s the best thing about your job?
I love interacting with people; my clients are down-to-earth and genuine. I enjoy helping businesses with tax; it’s rewarding to hear how TMNZ supports them to grow or navigate tough times.
What does it mean to you to be a female leader in accounting?
It’s really special. I love networking with other female leaders in the industry. At TMNZ we have held a number of events where we acknowledge female leaders within the accounting and tax industries. I’ve witnessed more and more women rise in the industry, and now that’s me too, so I’m proud.
What does your promotion signal about TMNZ’s growth and success in the South Island?
From 2015 to 2021, I was the primary person managing accounts in the South Island. In 2022, I gained the support of Isabella Prichard (Customer Growth Manager,Auckland) to reach more clients. We work exceptionally well together and wouldn’t be where we are now without her ambition, enthusiasm, and drive.
While we have done well to spread the word about TMNZ’s provisional tax solutions across the South Island, there are still many people and businesses that don’t know how we can help them. Now, we have Harry Macgregor (Customer Success Manager,) and Lexie Weaver (Customer Success Consultant) on board in Christchurch.
TMNZ’s investment shows the faith they have in us and our ability to take the South Island by storm.
What did you take into account when hiring new team members?
It’s so important for our team to be able to relate to and care about people regardless of whether they’re paying $500 or $5,000,000. Tax can be a stressful topic for people, so we need staff who are compassionate as well as qualified.
Lexie, a science graduate from Victoria University, has empathy in spades and great problem-solving skills, and Harry, a Chartered Accountant, can walk into a room and start a conversation with anyone. It’s exciting to have a combination of knowledge and strong interpersonal skills.
How are you going to be supporting South Island businesses?
I have lots of ideas, but first and foremost, we’re going to be visiting the regions, listening to people’s pain points, and figuring out how we can help solve them.
We’ll be planning more events so we can get to know our clients in a more informal setting.
How do you maintain a good work/life balance?
My non-negotiable is a group fitness gym session in the morning. It’s the only time of day when my mind’s not racing; for 45 minutes, I’m just trying to survive the workout! I have amazing support from family and friends to help me maintain self-care amongst the chaos.
Please describe in three words how you’re feeling about the next 90 days.
Primed. Optimistic. Excited.
How can people get in touch?
I’d love to chat to anyone interested in learning how TMNZ can support their business (or their clients businesses) through our smart tax payment solutions. Please contact us here, and ask to speak with Penny.
From left: Penny Ineson—Head of Advisor Relationships South Island, Harry Macgregor—Customer Success Manager, Lexie Weaver—Customer Success Consultant
Enhancing financial flexibility for a healthcare services provider
The situation
The Finance Manager at a Healthcare Services business in Auckland, began working with TMNZ five years ago when the business experienced unexpected fluctuations in their retail operations. The business was looking for ways to maintain good cashflow while supporting the international group’s financial position.
The challenge
During the 2024-25 fiscal year, the Finance Manager was juggling many financial priorities, such as:
- meeting quarter-end, half-year, and year-end cashflow targets without incurring external debt
- maintaining tax compliance while optimising the balance sheet.
The solution
They chose to leverage TMNZ’s Tax Drawdown solution because:
- TMNZ provided more efficient and easier access to funds compared to other finance channels
- the solution helped optimise the balance sheet position, providing access to short term cash rather than long-term bank loans
- significant administrative costs were saved, including legal fees and bank covenant reporting requirements
- they could maintain their tax deposit date after repaying the drawdown.
The results
By using TMNZ’s services, the Healthcare business achieved:
- enhanced support for the international group’s financial position, contributing positively to the group’s risk profile
- the ability to temporarily access funds, which was highly valued by the international group’s treasury team
- improved cashflow management without incurring more costly third-party debt.
Your key takeaway
TMNZ’s solutions provide flexible and efficient tax management, aligning with business needs and supporting financial stability without the constraints of traditional finance channels.
For more on how our Tax Drawdown solutions can help your business, go here.
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.