A businesswoman using TMNZ tax pooling for cashflow flexibility

TMNZ: The ultimate cashflow flexibility tool for your business

In tough economic times, it can be hard for businesses to stay on top of cashflow and juggle their tax liabilities. For companies and sole traders dealing with fluctuating cashflow and provisional tax headaches, there’s an easier way to manage your obligations—tax pooling.

Did you know TMNZ’s tax pool can help you manage your tax by matching your cashflow forecasts with your provisional tax payments? And you can use tax pool deposits as an alternative funding source when cashflow is tight.

How we can help

TMNZ is an Inland Revenue (IR)-approved tax pooling provider, meaning you can use us to pay income tax on your behalf at a time that suits you. We offer greater flexibility over how and when you pay provisional tax.

First, you’ll need to think about your cashflow forecast. If you’re unsure how to put one together, read our cashflow management guide.

Once you’ve got your cashflow projection, we can work together to figure out the best time to pay your provisional tax. From there, all you need to do is tell us your tax amount owed, the date it is due, and how you would like to pay.

When your tax bill arrives, we’ll transfer the amount required to IR on your behalf as a time-stamped payment. IR will treat your tax as if it was paid on time, eliminating the risk of being charged interest or late payment fees. Simple.

A working capital solution

TMNZ’s payments to IR mean you can keep money in your business and use it at the times of the year you’ll need it most. You can top up your payments later into our tax pool at any time.

Tax pooling is a perfect solution for businesses worried about future cashflow and looming obligations. By partnering up with us, you’ll have total control over your tax bill, rather than working around IR’s strict deadlines.

With no more late fees and interest charges from IR to think about, you can get on with running your business. There will be no need to scrape together funds in the middle of holidays or quiet periods to meet IR’s deadlines.

TMNZ can also save you money by avoiding penalties and interest charges if you’ve missed or underpaid tax. We charge much lower interest rates than the penalties imposed by IR if you’re overdue.

We're a line of credit

Another amazing TMNZ feature is that we can be a line of credit for your business.

If you’ve deposited funds into our tax pool but find yourself short on cash, you can withdraw that money whenever you want to use it as working capital.

If you’ve paid provisional tax into our pool, you’ll have access to a working capital facility up to the value of your deposit. This provides even more flexibility for you and your team to get through a cash crunch and stay on top of debt management.

We can offer much cheaper interest rates than bank loans, overdrafts, or unsecured loans, meaning money withdrawn from our pool is better for you and your business, putting you in a stronger position at the end of the year.

Ready to learn more about the benefits of tax pooling?

Download our guide to Better Cashflow Management for top tips on managing cashflow throughout the financial year.

If you’re ready to take control of your tax and gain access to a valuable line of credit for your business, find out more at by reading our Tax Pooling 101 page to learn more about the full range of benefits of being in our pool.

Then talk to your tax adviser about TMNZ tax pooling to take away your tax management worries.


NZ business owner paying provisional tax with TMNZ

How TMNZ tech takes the pain out of tax

As New Zealand’s first ever tax pool, we’re proud of our long history of innovation. It’s at the heart of everything we do, and we’re always looking for new ways to simplify tax.

Technology has been at the forefront of our efforts, whether it’s rolling out new features for our customers, adding new functionality online, or partnering with forward-thinking digital platforms.

Recently, we’ve rolled out some amazing tools to help our customers and their accountants easily manage income tax.

Discover our top tech solutions to help you take the pain out of tax time, including tools to cut down on admin, share data between platforms, and get instant information on things like tax swaps.

Inland Revenue Integration

TMNZ’s online dashboard is fully integrated with Inland Revenue (IR), meaning taxpayer information held by IR can be seamlessly shared on our platform, to make accountants lives easier.

In the past, accountants had to deal with multiple systems and spreadsheets to find accurate IR information. Integration means this admin work is no longer required.

Inland Revenue and TMNZ systems are connected so that key IR information is automatically populated on our dashboard. All relevant IR data, including Residual Income Tax figures, filing dates, and direct IR transactions appear on the TMNZ dashboard once you’ve logged in.

Thanks to IR integration, accountants can save time and reduce admin work. IR integration also removes the risk of manual errors as clients populate information from one platform to another, making the process much more efficient.

IR information is fed into our calculator to help you determine your (or your client’s) tax position as quickly as possible.

Kathleen Payne, Partnerships Director at TMNZ, says:

“Following IR integration, all the data you need for your calculations goes straight onto our dashboard. All you have to do is put in the current year’s position that IR might not know yet, and everything is calculated without further data entry.”

Accountants can obtain client consent (if they don’t already have it from their engagement letter) and the integration process without leaving our platform. There’s no need for third-party software, and it’s ready at the click of a button. Once an accountant authenticates their client list through MyIR, a digital consent form is sent to the taxpayer. After they sign digitally, IR integration is ready to go.

The good news doesn’t stop there. Recently IR approved TMNZ’s integration to meet their due diligence standards. That means clients can expect to see even more changes to the integration very soon. These will further improve the performance and simplification of our products, by leveraging data that IR already holds about taxpayers.

If clients need any assistance with our current IR integration, then TMNZ's friendly support team is on hand to help.  And you can find out more about IR integration here.

Taxlab integration

Our systems are also fully integrated with Taxlab, the cloud-based tax software system designed specifically for New Zealand accountants.

Taxlab integration is easy to set up and use. Once you’ve completed the process, TMNZ transactions will appear on the Taxlab platform. Clients no longer need to use different systems to calculate their tax position.

“Accountants will get a complete picture of all TMNZ transactions sitting against their clients’ tax year,” Kathleen says.

Like IR integration, the setup couldn’t be simpler:

  • log in to Taxlab, go to ‘Settings’, and add TMNZ as a connection
  • you’ll then be directed to TMNZ to log in and confirm
  • from there, you’ll be able to view TMNZ tax pooling information, including a full history of purchases, deposits, transfers, and tax payments.

Integration with Taxlab reduces the time and effort spent sharing information across the two platforms, giving tax agents even more time for their valuable client work.

Kathleen Payne, TMNZ Director of Strategic Partnerships
Kathleen Payne, TMNZ Partnership Director, discusses tax technology

Group Optimiser

If you’re a busy accountant in public practice looking to manage the tax year for groups of clients, TMNZ’s Group Optimiser tool is tailor-made for you.

This innovative feature enables accountants to calculate the position of several taxpayers and create multiple transactions at once.

Used alongside IR integration, Group Optimiser can make tax calculations even simpler.

Kathleen adds:

“Instead of having to prepare spreadsheets for each member in a group and then decide who has overpaid or underpaid tax, agents can use our calculator to enter a small amount of information. Then, at the click of a button, Group Optimiser calculates how to use the tax across the group in the most effective way.”

Group Optimser is ready and waiting on the TMNZ dashboard. All you need to do is log in.

Upcoming Deadlines

The Upcoming Deadlines function on the TMNZ dashboard is another of our top tech features.

For accountants managing several tax pooling clients, the Upcoming Deadlines feature can be used to track taxpayers ahead of key dates.

Offering total visibility over client tax positions as deadlines approach, the tool suggests prompts and actions to finalise the year.

“It also gives accountants a control list to work through their clients and ensure everything has been finalised,” Kathleen says. “It’s a workflow and control function and will remind advisers about everything they need to do for their clients.”

Automated Tax Swaps

TMNZ’s automated Tax Swaps is our latest dashboard feature, enabling clients to get instant quotes and process swaps below the threshold*.

Tax Swaps allow clients to even out their provisional tax payments if they have overpaid on one date and underpaid on another, saving on IR interest costs.

With our automated Tax Swap service, clients will benefit from faster, more efficient processing

The best part? The Tax Swap function is DIY.

“It’s a self-service system,” Kathleen explains. “If a client knows the swap they want to do, our system will automatically say, ‘Yes, you can do it, and this is the interest you’ll get’. You won’t have to interact with us at TMNZ. You can do-it-yourself.”

“It’s super efficient,” she adds. “Clients will have certainty of the outcome, they’ll know how much interest they’ll have to pay, or what they can earn, in an instant.

“At TMNZ, we’re all about flexibility, and empowering our customers to make decisions at a time that suits them.”

Automated Tax Swaps launch later this month, following our pilot with TMNZ's Early Adoptor community in April.

Become an Early Adopter

Are you part of TMNZ’s Early Adopter community, who gets first access to all our latest tech features?

Early Adopters enjoy the benefits of our new products and enhancements before anyone else, with support and training to help you make the most of new tools.

As an Early Adopter, you can share feedback and experiences to help us develop the best tech possible for accountants and clients.

“We love working with people to create the best tax solutions possible,” Kathleen adds. “Our Early Adopters are highly motivated, creative people who want to help us get even better.”

If you’re a tech savvy tax pooling user in an accounting firm, become an Early Adopter in a few simple steps:

  1. login to your dashboard
  2. Select your firm
  3. select ‘Early Adopter Programme’, from the left-hand menu
  4. review and accept the Terms and Conditions presented
  5. click the ‘Sign up’ button.

To learn more about TMNZ’s latest tech developments, head to our Innovative Tax Technology page or contact our support team today.

 

*the threshold is subject to change depending on market conditions.


Missed your latest provisional tax payment? How you can find relief

If you own a business, you’re probably familiar with paying provisional tax. Which means you’re also familiar with its inflexibility, and the penalties and interest that accumulate if you miss a provisional tax due date.

The problem with this model is how it affects your cashflow. You need money to pay staff, cover operational expenses, and invest in growth initiatives, yet it’s tied up in saving for tax time. Or worse yet, in shelling out for Inland Revenue (IR) interest and penalties on late payments.

No matter which camp you’re in, there is relief and it’s called tax pooling.

If you own a business, then you can benefit from tax pooling. Let us explain how.

First, what happens if I miss my provisional tax payment?

If you’ve paid taxes late or haven’t paid enough by the provisional tax due date, Inland Revenue may charge penalties or interest on your unpaid amount as follows:

  • A 1% late payment penalty is charged on the day after the due date
  • An additional 4% penalty is charged seven days after the due date — including late payment penalties (LPP)
  • UOMI may be charged from the day after the due date – UOMI will be charged daily until you have paid your total tax amount, including late payment penalties and any accrued interest.

What is tax pooling?

Tax pooling is unique to Aotearoa, with Tax Management New Zealand (TMNZ) being the first and largest tax pooling business. Essentially it allows tax paying businesses to pool their provisional tax payments in an account held by a registered tax pooling intermediary like TMNZ. This way, we offset one business’ underpayments by another’s overpayments. Think of it as business helping business!

Because we’re able to backpay your unpaid tax, it is no longer considered a ‘late payment.’ Meaning you avoid the IR penalties and fees on any missed tax payments.

With TMNZ, you have the flexibility to make a one-off payment or set up a regular instalment arrangement, giving you up to 13 months to pay your provisional tax. Additionally, if you've missed your terminal tax date, TMNZ can still help reduce interest costs and eliminate late payment penalties.

How about for historic payments from Inland Revenue reassessment notices?

TMNZ can also assist taxpayers with historic income tax payments and other tax types such as GST and PAYE if you receive a notice of reassessment from Inland Revenue. You have 60 days from the date the Inland Revenue issues this notice to use tax pooling.

What’s the catch?

Paying provisional tax through a tax pooling intermediary such as TMNZ lets you pay what you owe at a time in the future that better suits your business, or take advantage of instalments to avoid the provisional tax late payment penalty.

There is some interest to pay – but this is much lower than Inland Revenue’s interest on tax paid late or what you will incur if you use your business overdraft or get an unsecured loan. Tax pooling wipes the late payment penalties.
All you have to do is tell the tax pooling provider the amount of tax that is due and when or how you would like to pay it. They take care of the rest and even notify Inland Revenue of your arrangement. Easy-peasy.

Save yourself the tax trouble. Find out more.

If you've missed your provisional tax payment or are struggling to meet your tax obligations, you’re not out of luck.

TMNZ can help ease the financial strain of late payment penalties and provide much-needed cashflow relief. Contact your accountant or tax agent and let them know you want to pay your missed or underpaid provisional tax using TMNZ tax pooling. Or get in touch with us directly to explore your options and take control of your tax payments.

Don't let a late payment penalty derail your business. With tax pooling from TMNZ, you can navigate the challenges of tax season with confidence and peace of mind.

Contact our team to take advantage of tax pooling today.


TMNZ Board announces new Chief Executive

TMNZ is thrilled to announce the appointment of Matt Edwards as CEO, effective 1 May 2024.

Matt joins TMNZ following 16 years of strategic leadership and entrepreneurial experience, working in the FinTech sector in the United Kingdom and across Europe.

Matt Edwards, TMNZ - Chief Executive Officer

The appointment signals the next chapter in TMNZ’s journey, as the purpose-led tax pooling originators and market leaders look to help more New Zealand businesses, in exciting new ways.

Board Director and TMNZ Founder Ian Kuperus said:

“We’re delighted to welcome Matt to TMNZ. Matt is extremely well regarded overseas for his senior leadership of people, strategy, technology, innovation and product capability areas. Now our New Zealand business, and our customers, will benefit from this deep experience.”

Matt’s background shows that he is a growth specialist, with a track record of driving businesses forward, developing high-performance teams and bringing transformational change to businesses looking to take the next step.

New CEO Matt said:

“TMNZ has developed an enviable reputation as an industry leader in tax pooling services. I believe the business is primed and ready to take the next step, by changing up how we deliver our current market offering and better serving our customers' needs in a dynamic FinTech world. I am very excited about the opportunity to drive this vision."

The appointment follows news of former CEO Chris Cunniffe retiring from his position in January 2024, but continuing in an advisory capacity to support a smooth leadership transition. The TMNZ Board personally thanked Chris for 12 fantastic years of leadership. The Board also thanked Amanda Thorpe, for guiding the business through the transition period in her role as Acting CEO.

Under Matt’s leadership, TMNZ remains committed to building on its successes and delivering the best client experience, as well as continuing to donate its profits to Whakatupu Aotearoa Foundation for a restored and thriving New Zealand.

For queries please contact TMNZ Brand and Marketing Director at charlotte.tremewan@tmnz.co.nz


Tax Drawdown: Use your tax payments as a line of credit

Every now and then, businesses can encounter cashflow struggles, whether you have overdue invoices or an unexpected bill to pay. When this happens, it’s typical to ask your bank for help. But did you know there’s an easier, cheaper way?

As a TMNZ customer, you can access funds you have paid into our tax pool at any time. You can draw out your deposits as an affordable line of credit without the headache of a loan application, conversation with a bank, or Inland Revenue (IRD) paperwork and still keep your original tax deposit date.

How it works

Imagine your business is suddenly hit with a big cost and you need some quick cash. By getting in touch with TMNZ, you can access the money you’ve already paid into and held in our pool. 

You can draw down the funds on a temporary basis, and our flexibility helps you solve a short-term business challenge in a simple, cost-effective way. 

TMNZ Tax Drawdown allows you to use your tax payments in the pool as collateral to take out funds at attractive interest rates. You can request money at any time and it will land in your account within three to five business days (provided AML requirements are met). 

The benefits

Tax Drawdown puts you in control. You can borrow money for a minimum of four weeks or a maximum of up to 75 days after your terminal tax date. Once you’ve paid us back, we can continue to hold those tax payments in the pool (which will be available for a future drawdown) or transfer the payments to the IRD to meet your tax liability. 

Small businesses and larger companies alike can tap into Tax Drawdown, and there’s no limit to how much of your tax deposit you can withdraw.  

If your current tax pool doesn’t do drawdowns, fear not. You can transfer your tax pool payments to us and kick-start the process immediately. 

While Tax Drawdown is a bit like a line of credit, we don’t charge line fees or establishment fees like the banks.  

TMNZ can also offer more competitive interest rates than the banks. Our rates are the same as our finance rates, which are much closer to the cost of a home loan than a small business loan. Interest costs depend on how much money you take out and the duration of your withdrawal and you’re only charged for the period you use the funds. 

Kathleen Payne, Director of Strategic Partnerships at TMNZ, says Tax Drawdown can be a business lifeline. 

“It’s really useful for businesses that need to make a capital investment, buy stock, or simply position themselves for the rest of the year. People can use our tax pool to their advantage and it’s so easy to do, with interest costs limited to the time they’re using the funds. It’s another working capital option for businesses, particularly in an environment where cashflow is causing a lot of constraints.” 

How to use Tax Drawdown

Accessing your money is a painless process. Get in touch with us or ask your tax adviser to call or email our team.

Kathleen says Tax Drawdown applications are “relatively simple” and can be made multiple times a year.  

“A small amount of information needs to be provided. We ask how much money you need and how long you need it for. We then work out your interest rate, finalise the terms, and get it signed.” 

Kathleen says Tax Drawdown can help businesses and the New Zealand economy by freeing up money for investment and growth. 

“If you think about what businesses use the funds for, it’s additional spending in the economy. Tax Drawdown enables people to use money at a reasonable cost to make capital investments, investments in staff, or meet a market challenge. 

“All of these things help businesses survive and thrive, and it has a circularity for the whole economy,” she says. “It’s money going back into the business community while helping companies meet their tax liability. So everyone’s a winner.” 

 

In need of flexible, affordable financing? Contact our team to take advantage of Tax Drawdown today.


TMNZ leadership update, January 2024

After 12 years successfully leading and growing Tax Management New Zealand (TMNZ), Chris Cunniffe has announced he will be retiring from his position and leaving the business in July 2024. 

While Chris will step down as CEO on 31 January, he will continue to support TMNZ in an advisory capacity, ensuring a smooth transition to TMNZ’s next Chief Executive. 

Board Director and TMNZ Founder Ian Kuperus personally recognised Chris for his outstanding service:

"Chris has made a significant contribution to TMNZ, growing our purpose-led tax pooling business from seven people in 2011 to over 70 today, helping hundreds of thousands of taxpayers across New Zealand. Chris has shown an unwavering commitment to his team, clients and communities, through Whakatupu Aotearoa Foundation."

The Board has appointed current TMNZ Head of Transformation and People, Amanda Thorpe as Acting CEO, effective 1 February 2024. 

“Amanda brings senior leadership experience in transformation, culture and high-performance, here in Aotearoa and overseas. We’re fortunate that Amanda, as Acting CEO, is well positioned to support the business through the next period of change.” says Ian. 

Amanda will work closely with the TMNZ Leadership Team including Acting Chief Operating Officer, Matt Rama who prior to TMNZ managed another tax pooling business. 

As TMNZ looks to the future, the business remains committed to continuing to build on its successes and delivering the best people and client experience, as well as continuing to donate its profits to Whakatupu Aotearoa Foundation for a restored New Zealand.  

The TMNZ Board has begun the recruitment process for a permanent CEO and once complete, new leadership will be communicated through TMNZ channels. 

For queries please contact TMNZ Brand and Marketing Director, at charlotte.tremewan@tmnz.co.nz