April marks the beginning of the new financial year for many of you, and the beginning of the ‘transfer-out’ period for Tax Pooling Solutions.
Many of you will have received emails last week about the fast-approaching deadlines for tax pooling transfers to IRD. If you or your clients have an outstanding balance at IRD for the 2023 tax year, now is the time to get in touch with us and arrange any tax purchases or transfers to IRD.
Now is also a great time to plan ahead for upcoming provisional tax instalments and discuss how tax pooling can provide your clients with more financial flexibility. By utilising tax pooling, your clients can hold onto their cash for longer and avoid drawing down on their business overdraft by cutting cash costs and deferring payment terms.
Deadline for 2023 tax transfers to IRD
All purchased and financed tax transfers for 31 March to 30 September balance date clients must be made before:
22 April 2024 for clients without a valid extension of time (EoT); or
24 June 2024 for clients with a valid extension of time (EoT).
19 June 2024 is the last tax purchase date to buy 2023 financial year tax for provisional taxpayers with a valid extension of time and a balance date between 31 March and 30 September. This will ensure funds are transferred to IRD before the tax pooling cut-off date.
The next provisional tax date is 7 May 2024.
Provisional taxpayers with the below balance dates may have a tax instalment due on 7 May 2024:
- Taxpayers with a 31 March balance date will generally have their third provisional tax instalment due for the 2024 tax year.
- Taxpayers with a 31 July balance date will generally have their second provisional tax instalment due for the 2024 tax year.
- Taxpayers with a 30 November balance date will generally have their first provisional tax instalment due for the 2025 tax year.
A solution for clients who cannot settle 2023 tax before the transfer deadline
If your client has paid provisional tax for the 2024 financial year, you can request for these payments to be transferred back to 2023 and then use tax pooling for 2024. The benefit of this is that your client will get an extra 12 months to pay.
Please get in touch with the team to discuss whether this could work for you.
Recent changes to our website
Last month we rolled out some exciting new changes to the ‘client lists’ page of the Tax Pooling Solutions website to make managing your client lists, notification settings, client security, and tax manager access easier than ever before.
You can find out more about the changes here.
We'd love to hear your feedback on changes that we've made, so if you have any questions or comments please reach out to the Tax Pooling Solutions team.
