provisional tax

Image: Bart Taylor

Syncing provisional tax to cashflow

Syncing provisional tax to cashflow 1200 630 TMNZ Blog

As a self-employed painter and decorator, Bart Taylor knows full well how business owners can get themselves into strife if they don’t plan for their tax obligations. He speaks from his own personal experience. That’s why Bart is happy to talk about how Tax Management NZ (TMNZ) enables him as a self-employed tradesperson to take…

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Cashflow relief for farmers impacted by flood or drought

Cashflow relief for farmers impacted by flood or drought 1200 630 TMNZ Blog

Those impacted by flooding in Canterbury or drought elsewhere in New Zealand have another option to manage their cashflow. It’s called tax pooling. It lets taxpayers defer their upcoming provisional tax payments to a time that suits them, without incurring interest (currently seven percent) and late payment penalties from Inland Revenue (IRD). The service –…

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Bright-line test: Don’t get caught by ‘change-of-use’ rule fishhook

Bright-line test: Don’t get caught by ‘change-of-use’ rule fishhook 1200 630 TMNZ Blog

Anyone who lives away from their main home for more than a year will be liable to pay income tax on any profit they make from the sale of a residential property sold within the new bright-line period. That’s because of the introduction of a ‘change-of-use’ rule that came into effect when the Government amended…

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Make IRD interest, late payment penalties disappear

Make IRD interest, late payment penalties disappear 1024 683 TMNZ Blog

A missed or underpaid provisional tax payment often means a taxpayer is faced with a steep interest cost and potentially late payment penalties on top of what they owe. However, tax pooling can make that go away. A big frustration with Inland Revenue (IRD) is that it expects taxpayers to pay the correct amount of…

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Miscalculated your tax loss carry-back? Don’t worry – help is at hand

Miscalculated your tax loss carry-back? Don’t worry – help is at hand 1200 630 TMNZ Blog

Tax pooling can reduce the interest cost a taxpayer faces by up to 30 percent if they have overestimated their loss under the temporary tax loss carry-back scheme. Under the temporary Inland Revenue (IRD) scheme, those who expect to make a loss in the 2019-20 or 2020-21 income year can estimate that loss and use…

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IRD payment allocation rules explained

IRD payment allocation rules explained 1200 630 TMNZ Blog

Provisional tax payments made on or before the date of the final instalment for the year are applied to the oldest overdue tax amount first while payments made after the date of the final instalment are applied to the interest owing on any overdue tax first, then the overdue tax amount. The IRD payment allocation…

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Accessing overpaid tax faster in uncertain times

Accessing overpaid tax faster in uncertain times 1200 630 TMNZ Blog

Cash is king and being able to get your mitts on it quickly in an unpredictable world where circumstances can – and do – change in an instance is priceless. Just ask the taxpayers who were able to access the provisional tax payments they had deposited in the tax pooling account of Tax Management NZ…

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Three tax pooling solutions for businesses impacted by COVID-19

Three tax pooling solutions for businesses impacted by COVID-19 1200 630 TMNZ Blog

IRD has announced a suite of tax relief measures during COVID-19 to help struggling businesses. However, a tax pooling provider such as Tax Management NZ (TMNZ) offers some solutions of its own for those wishing to manage cashflow, facing uncertainty about their profitability or needing access to funds during this difficult economic time: Provisional tax…

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Increased provisional tax threshold: Legislative application

Increased provisional tax threshold: Legislative application 765 450 TMNZ Blog

The rules that determine whether someone must pay provisional tax are still the same in terms of how IRD applies them. However, what’s not the same for the 2021 and future tax years is the point at which they are applicable to a taxpayer. That’s the important thing to remember if you’re struggling to wrap…

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Increased provisional tax threshold explained

Increased provisional tax threshold explained 1200 630 TMNZ Blog

A taxpayer has no obligation to pay provisional tax for the 2020-21 income year if their liability for the previous year was $5000 or less. In most cases, any income tax payable for the upcoming year will be due at their terminal tax date. That said, there are some exceptions to this rule. We are…

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