Happy New Year from the Tax Pooling Solutions team!
The PwC Tax Pooling Solutions team have had a great start to 2024 and are looking forward to working with all of our new and returning clients this year.
With the end of financial year fast approaching for many of our clients, now is a great time to start looking at ways to free up resources and put a plan into place for any upcoming tax payments. Get in touch with us to discuss how we can help.
Provisional taxpayers with the below balance dates may have a tax instalment due on 28 February 2024:
- Taxpayers with a 30 September balance date will generally have their first provisional tax instalment due.
- Taxpayers with a 31 May balance date will generally have their second provisional tax instalment due.
- Taxpayers with a 31 January balance date will generally have their third provisional tax instalment due.
39% Trustee tax rate - PwC Academy webinar
The 39% trustee tax rate will come into effect on 1st April 2024. To help you prepare for this update, PwC Academy has recorded a webinar session.
The Tax Pooling Solutions team has partnered with PwC Academy to provide access for all of our clients to view the webinar for a limited time.
If you do not have a PwC Academy licence, sign up to view the webinar using this google form or get in touch with the Tax Pooling Solutions team.
If you have an existing PwC Academy licence, you can access the recorded webinar here.
Other Important Dates
20th February 2024
- Funds for the 2022/2023 financial year must be transferred out of the pool before this date for clients with a 30 November balance date and a valid extension of time, and for clients with a 31 January balance date who do not have a valid extension of time.
27th March 2024
- This is the last date to purchase tax for the 2022/2023 financial year for clients with a 31 December balance date and a valid extension of time and for clients with a 28 February balance date who do not have a valid extension of time.
29th March 2024
- Funds for the 2022/2023 financial year must be transferred out of the pool before this date for clients with a 31 December balance date and a valid extension of time and for clients with a 28 February balance date who do not have a valid extension of time.
"Tax Pooling offers payment terms that are more flexible and in most cases more cost effective than any other funding option in the market."
Tax Purchase - "Most Simple"
“Do nothing now” and purchase the tax credits from us when the funds are available, or when you have certainty over the amount to pay.
Tax Finance - "Most Economical"
Agree the term and pay the interest up front. PwC will arrange the tax deposit into the tax pool and earmark this for your client. When the tax finance arrangement is repaid, the tax deposit in the pool can be transferred to your client's income tax account, reversing interest and late payment penalties.
Easy Tax - "Most Flexible"
Setup an automatic payment to “purchase tax as you go”. You will only be charged interest on any payments that are overdue and this is cheaper than IRD. The interest rate is fixed and you have the option to hold the purchased tax in the pool until you file the return to avoid overpaying to IRD.
Tax Deposit
If you have the funds available now, instead of paying directly to IRD you can deposit the payment into the tax pooling intermediary.
The benefits include:
Earn interest on any potential overpayment of tax (IRD credit rate is 4.67% p.a).
Option to take a line of credit and “drawdown” against this tax deposit without incurring interest or penalties (also no line fees) as if you chose Tax Finance to start with.
Ability to “back-date” the deposit date to cover any provisional tax arrears.
Request deposits in excess of the tax liability to be paid out before the tax return is filed.
