Jucy Rentals Group say good bye to provisional tax stress

They say you can't make an omelet without breaking some eggs. In this context, a company cannot grow without taking some risks or investing in their business.

Jucy Rentals Group's day-to-day operations highly depend on cash in the bank. It faces a unique challenge when it comes to paying provisional tax. They have to account for two things:

  • The seasonality of business with summertime as their peak period
  • Investing into their products regularly.

The company's CFO, Jonathan Duncan, found a way to manage cashflow by using Tax Management NZ products Tax Deposit, Tax Finance and Flexitax® to create structure around outgoing payments during the year.

The strategy is simple: Pay into the TMNZ tax pool using Tax Deposit when the cash is available; then if any top ups are required, pay through the tax pool with Flexitax® or Tax Finance.

"It gives us the ability to manage our cash flows around that as to what works for us rather than trying to fit in with the timeframes of Inland Revenue and that is a big benefit for us," explains Jonathan.

Jucy Group have settled into the benefits of tax pooling through TMNZ.

Watch the video below to hear more from Jonathan.

Image: Walker & Co Real Estate owners Lee And Marc Walker

Walker & Co Real Estate remedy big provisional tax problem

Image: Walker & Co Real Estate owners Lee And Marc Walker

Provisional tax is not without its challenges. Marc and Lee Walker from Walker & Co Real Estate know this all too well.

The husband and wife duo do not take umbrage at paying tax. No siree Bob. It’s part and parcel of being in business. And they accept it ain’t going away.

But they do have issues with the provisional tax system in its current condition.

Occasionally they feel the whole thing isn’t conducive to helping their small business grow. After all, having to pay tax even though they have not earned a single cent can certainly be a kick in the ribs.

But that is a consequence of IRD’s inflexible payment dates. Pay up – or pay the price.

If this sounds familiar, grab a pew and lend them an ear. Marc and Lee are about to detail how paying provisional tax with TMNZ enables Walker & Co Real Estate to remedy this problem.

Introducing Walker & Co Real Estate

To understand their perspective on provisional tax, one must understand more about their business.

They own and operate Walker & Co Real Estate. It’s a boutique agency in Upper Hutt. Warm and welcoming, it’s the type of place that caters to all walks of life. There’s always a cuppa on hand as they converse with buyers and sellers to deliver the best outcome. It certainly has that homely feel.

Collectively, Marc and Lee bring nigh on 20 years’ experience within the industry. So, they know what’s what. Five of those have been spent running Walker & Co Real Estate.

Like any business, there are peaks and valleys. There are sales aplenty in spring and Christmas. In winter, business chills a little.

That seasonality affects Walker & Co Real Estate. When cash is in short supply, Marc says it can be tough getting things like marketing and advertising squared away.

Adds Lee: “Obviously when your commissions come in there’s good money. However, you’ve got to sell a property before you get the cash coming in. So cashflow is definitely…very difficult.”

Image: Walker & Co Real Estate pay provisional tax with TMNZ.

Provisional tax can hinder business growth

And the last thing Walker & Co Real Estate wants to do is hand over money to IRD when things are tight.

That puts the kybosh on their business plans as they are having to use the funds they need to operate or would invest elsewhere to cover it.

That, in turn, does not help them earn the do-re-mi.

Why Walker & Co Real Estate uses TMNZ

As they prefer to keep money in their business, Walker & Co Real Estate chooses to pay its provisional tax with TMNZ. This allows them to make their payments when it suits their business cashflow.

“Having the resource to put into your business is very important,” says Marc.

 “Growth is important and if you take resources away from companies like us, our growth gets stagnant a little bit and it takes longer to get traction. To not worry about [provisional tax], it certainly helps us grow.”

Lee agrees. “It takes away all those stresses. You’re passing it on to somebody else and saying ‘take care of this for me, I don’t know what to do, we’ve got a shortage of cashflow’ and it’s the best way of putting more energy into your business and doing the things that you’re good at.”

All that peace of mind costs the pair is TMNZ’s interest, which is much cheaper than the usurious interest IRD charges. Not a bad trade-off for greater flexibility. No nasty late payment penalties either.

Lee says everything was easy to set up. Forget about phoning IRD and, providing you can get through to someone, facing an “interrogation” from its staff. 

“[TMNZ are] there to help you – and they know their stuff.

“If you are unsure of anything at all, they will answer everything in a way that you can understand it. The everyday person, because there’s accountant language and everyday person language and they put it in a way that you can understand it as an individual or a company.”

Image: Walker & Co Real Estate logo
Photos: Colin McDiarmid.

Just give it a try

Marc reckons other business owners should give serious thought to using TMNZ.

“You solve a problem for a lot of businesses,” he says.

“I talk with a lot of business owners and we’re all the same – there’s a certain month in the year that you need to get things squared away and this from my point of view would certainly help them.”

Lee is much more effusive in her praise.

“Every time you have got that payment coming up you know you can give them a call and they will have it sorted for you. When you use the professionals and they do a job and do it well, leave it to them.

“Try it for a couple of years and see how you go. You’ll never turn back and will use them every time.”

Photo: Prodigy Hair Industry's Krystle Walker

Prodigy Hair Industry cuts tax stress

Photo: Prodigy Hair Industry's Krystle Walker

Krystle Walker from Prodigy Hair Industry loves cutting and styling hair. She does not love provisional tax.

That’s why she utilises the service of TMNZ. They cut away the stress this causes her so she can focus on running and improving her salon.  

But more on that in the coming paragraphs. First, some background information.

The Prodigy Hair Industry story

Krystle is the owner and manager of Prodigy Hair Industry. It's in Upper Hutt, a city about 30 minutes outside of Wellington.

She has been plying her trade as a hairdresser for 12 years. Four of those have been at Prodigy Hair Industry.

It’s a stylish set-up she’s got on Fergusson Drive. (Yours Truly loved the décor.)

Things are humming nicely at Prodigy Hair Industry too. Seven staff on the books and a good customer base are a testament to that.

Photo: Prodigy Hair Industry

The challenges of being a business owner

Krystle is still wearing her training wheels in term of running her own business.

As she is discovering, transitioning from employee to employer is not without its challenges. There are wages to pay and hair products to purchase, among other things. Cashflow is a biggie.

Provisional tax is another challenge.

Krystle admits she is not a tax geek. Without being disrespectful, you get the sense the intricacies of tax probably do her head in. In fact, in an ideal world it would probably be something she would not have to concern herself with.

But alas, this is not an ideal world. She knows there is no escaping the clutches of the taxman. Falling out with IRD has serious repercussions too.

Taking care of provisional tax so she can take care of business

Krystle avoids any such precarious situations with TMNZ.

Her provisional tax payment plan means her tax is taken care of. She makes payments when her business cashflow permits and TMNZ applies these to the correct tax dates.

No need to worry about late payment penalties. There is interest to pay. However, this is much lower than the 8.22 percent IRD currently charges when someone doesn't pay tax on time.

“It does reduce the stress month to month. Knowing that you have got my back, I don’t have to worry about that,” she says.

It allows Krystle to get on with doing what she does best – cutting and styling hair and making sure Prodigy Hair Industry is satisfying its customers’ needs.

Photo: Prodigy Hair Industry and provisional tax
Photos: Colin McDiarmid.

“I can put 100 percent into the business and my staff.”

The concept of paying provisional tax through TMNZ was about as familiar as the Klingon dialect when her accountant first broached the idea.

But after hearing how it operates with the blessing of IRD, Krystle says it was too good to pass up.

Now she has no qualms about recommending TMNZ to others occupying a similar waka to Prodigy Hair Industry.

“It’s great, especially for small business owners.

“It just gives me the confidence with my day-to-day cashflow.”

Watch the video below to hear from Krystal about how tax pooling has provided her freedom to focus on her business, not provisional tax.


TMNZ is New Zealand’s first and largest tax pooling provider. It offers provisional tax payment plans for business of all sizes.