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.
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