7 May has passed. If your provisional tax payment didn’t go through, or you underpaid, Inland Revenue late payment penalties and use of money interest started building the very next day.
The good news is that you still have time to fix it. But the window is shorter than most people realise.
What IRD charges when you miss a provisional tax payment
Missing a provisional tax due date triggers costs in stages:
- A 1% late payment penalty the day after the due date
- An additional 4% penalty seven days later
- Use of money interest (UOMI) at 8.97% per annum (as at 16 January 2026), calculated daily until the balance is cleared
These charges apply whether you missed the payment entirely or simply didn’t pay enough. And paying Inland Revenue directly after the fact won’t remove the penalties. It only stops them growing.
There is a way to clear them altogether.
How TMNZ wipes the late payment penalties
TMNZ is approved by Inland Revenue and has been helping New Zealand businesses manage provisional tax since 2003. When you pay through TMNZ, we apply funds from our tax pool against your liability, backdated to the original due date.
Inland Revenue sees your tax as paid on time. The late payment penalties are wiped. The interest you pay is significantly lower than IRD’s UOMI rate.
This applies whether you missed the 7 May payment for the 2025–26 income year (FY26), or you have an outstanding income tax liability from the 2024–25 income year (FY25) that still needs to be resolved. Both are situations TMNZ can help with.
You don’t need to have paid anything yet. You just need to act before your deadline.
How long you have to fix it?
Tax pooling legislation gives most taxpayers 75 days from their terminal tax date to resolve a missed or underpaid provisional tax payment, for that income year.
When you’re ready, you can pay TMNZ in one lump sum or spread the cost over regular instalments with up to 13 months to pay. You choose what works for your cashflow.
Missed your 7 May payment? Here’s what to check
If you’re unsure whether your 7 May payment was correct, check your income tax account in myIR. You’ll be able to see what’s been paid, what’s outstanding, and any penalties or interest already applied.
If you have an accountant or tax agent, they can check this for you and arrange a TMNZ solution on your behalf.
Frequently asked questions
What happens if I’ve already paid IRD directly after missing the date?
You may still be able to recover the late payment penalties. If the payment is for an income year that’s still inside the 75-day tax pooling window, TMNZ can purchase tax with a date stamped to your original due date and your direct payment to IRD can be refunded. Talk to us before assuming the penalties are locked in.
Does this work for instalments other than 7 May?
Yes. The same approach applies to the August and January provisional tax instalments, and to any year where the provisional tax calendar deadline was missed, as long as you act inside the 75-day post-terminal-tax window.
What if my balance date isn’t 31 March?
The 75-day window runs from your specific terminal tax date, which depends on your balance date and whether you use a tax agent. Most New Zealand businesses have a 31 March balance date, but if yours is different, the deadline shifts. We can confirm your exact window when you get in touch.
Will using TMNZ affect my IRD compliance history?
No. Because the tax is treated as paid on time, the missed instalment doesn’t show on IRD’s record as overdue. Your compliance history stays clean.
Can I use TMNZ if I’m already on an IRD instalment arrangement?
Yes. Businesses with an existing IRD instalment arrangement for the missed provisional tax payment can still move that liability into a TMNZ solution, and most pay significantly less in interest than they would by continuing the IRD arrangement.
Is there a minimum amount?
There’s no fixed minimum, but the cost benefit of tax pooling depends on the size of the liability and the time still left in the 75-day window. We’ll quote upfront so you can see whether it makes sense for your situation.
Sort your missed provisional tax today
Whether you missed the payment, underpaid, or you’re catching up on an FY25 liability, TMNZ can help you resolve it and pay significantly less than if you leave it with Inland Revenue.