Forgot to pay your provisional tax? Or maybe cashflow was tight and you couldn’t quite make the payment work? Either way, you’re not alone. And more importantly, you’re not out of options.
If you own a business, you know provisional tax and its inflexibility all too well. Miss a due date and the penalties and interest start piling up fast. But here’s the thing – there’s relief available, with TMNZ.
Let us show you how we can help.
What happens when you miss that payment?
When you pay provisional tax late or don’t pay enough by the due date, Inland Revenue (IRD) charges penalties and interest on your unpaid amount:
- A 1% late payment penalty (LPP) kicks in the day after the due date
- An additional 4% penalty hits seven days later – and that’s on top of any existing penalties
- 9.89% UOMI (use of money interest) gets charged daily from the day after the due date until you’ve paid everything, including penalties and interest.
The costs add up quickly. But there’s a way around this.
Enter TMNZ – your relief option
TMNZ pioneered tax pooling – a world-first, and IRD-approved solution. Here’s how it works.
We pool provisional tax payments from multiple businesses in an account we hold as a registered tax pooling intermediary. When one business needs more time to pay, another business’s overpayment covers them. Business helping business.
Because we can backpay your unpaid tax, IRD no longer sees it as a ‘late payment.’ Which means you dodge those penalties and fees entirely.
Whether you simply forgot to pay or cashflow got tight, TMNZ gives you breathing room. You can make a one-off payment when it suits you, or set up regular instalments – giving you up to 13 months to pay your provisional tax.
Missed your terminal tax date too? We can still help slash interest costs and wipe out late payment penalties.
The real deal
TMNZ lets you pay when it actually works for your business. There is some interest to pay – but it’s much lower than IRD’s late payment interest or what you’d pay on business overdrafts or unsecured loans. And tax pooling with TMNZ eliminates those late payment penalties entirely.
All you need to do is tell us how much tax is due and when or how you’d like to pay it. We handle the rest and notify Inland Revenue of your arrangement. Simple.
Take control of your tax payments
Whether you forgot to pay or couldn’t make the payment work with your cashflow, you’ve got options. TMNZ can eliminate those late payment penalties and give you the payment flexibility your business needs.
Contact your accountant or tax agent and let them know you want to use TMNZ’s tax pooling product for your missed or underpaid provisional tax. Or get in touch with us directly to explore your options.
Don’t let a missed payment throw your business off track. With TMNZ, you can navigate tax season with confidence and keep your cashflow working for you.
Ready to take advantage of tax pooling? Contact our team today.