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use of money interest

Use of money interest update

Use of money interest update Lee Stace

Inland Revenue (IRD) use of money interest rates on underpaid and overpaid tax are set to rise next month. The interest rate charged by IRD on underpaid tax will rise from 8.4 percent to 9.21 percent. The rate for overpaid tax will rise from 1.75 percent to 2.63 percent. The new rates will take effect…

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How to use provisional tax to grow business

How to use provisional tax to grow business Lee Stace

Tax pooling frees up the cashflow businesses need to take advantage of favourable economic conditions. The business outlook for the coming year is positive, with reports indicating that 2015 will be another strong one for the New Zealand economy. According to a survey conducted by the Employers and Manufacturers Association at the end of last…

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Avoid a cashflow problem in the New Year

Avoid a cashflow problem in the New Year Lee Stace

Here’s how you can delay paying 15 January provisional tax to free up working capital at a time of year when businesses are likely to need it most. The early part of the New Year can be a challenging time for small and medium sized businesses. Results from a poll conducted by the Employers and…

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A way to solve Christmas cashflow issues

A way to solve Christmas cashflow issues Lee Stace

The period after Christmas can be tough for many small and medium sized businesses. According to more than half the respondents to a poll conducted by the Employers and Manufacturers Association, January to March is when they tend to experience cashflow constraints. It’s hardly surprising, really. The period after Christmas is traditionally slow business-wise. Consumers…

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New form of protection from IRD penalties, interest

New form of protection from IRD penalties, interest Lee Stace

Taxpayers with volatile income can now protect themselves in advance from the risk of incurring hefty IRD late payment penalties and use of money interest (UOMI) if they have a better-than-expected financial year. Tax SHIELD™, a new product from Tax Management NZ (TMNZ), lets taxpayers put an arrangement in place whereby they pay an upfront…

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Provide client value with TMNZ via Reckon APS Tax

Provide client value with TMNZ via Reckon APS Tax Lee Stace

HC Partners LP director Craig Copland recommends more accountants purchase tax from Tax Management NZ (TMNZ) via the Reckon APS Tax system, as it enables them to quickly provide additional value to clients and save them money. Buying tax from TMNZ eliminates IRD late payment penalties and reduces interest costs by up to 30 percent…

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Relieve winter cashflow pressure

Relieve winter cashflow pressure Lee Stace

The winter months can wreak havoc with your cashflow. So much so, in fact, that sometimes the last thing you want to do is pay provisional tax. Some of those with a March financial year-end can probably relate to this situation, as they will pay their first instalment of provisional tax for the 2015 income…

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Take the guesswork out of provisional tax

Take the guesswork out of provisional tax Lee Stace

No doubt many of you will be paying your first provisional tax instalment in a couple weeks’ time. As you know, provisional tax involves a degree of guesswork because you base your payments on what you think your income tax will be. Accurately gauging how much you need to pay on your first provisional tax…

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Tax tip: Instead of topping up P3, buy tax now and save

Tax tip: Instead of topping up P3, buy tax now and save Lee Stace

Clients with 30 June balance dates who are considering topping up their 28 July (P3) provisional tax can save money now. If they top up when they pay their final instalment of provisional tax on 28 July, they will be charged use of money interest at 8.4 percent from the date of underpayment until 28…

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A legitimate way for farmers to keep the taxman at bay

A legitimate way for farmers to keep the taxman at bay Lee Stace

Using tax pooling to defer untimely provisional tax payments can save farmers money, as it eliminates IRD late payment penalties and use of money interest charges. In this article, we look at how it might be of use to farmers who are wishing to reinvest in their business. Farmer Joe has a conundrum. Overall, business…

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