Provisional taxpayers with the below balance dates may have a tax instalment due on 28 November:
- Taxpayers with a 30 June balance date will generally have their first provisional tax instalment due.
- Taxpayers with a 28 February balance date will generally have their second provisional tax instalment due.
- Taxpayers with a 31 October balance date will generally have their third provisional tax instalment due.
Plan ahead for the New Year
Taxpayers with a 31 March, 31 July, or 30 November balance date will generally have a provisional tax instalment due on 15 January 2024.
With the holiday period coming up soon, now is a great time to start planning for this instalment.
If you’re aware of any clients who could benefit from some financial flexibility during this time of year, please get in touch.
The TPS team is taking a break over the holiday period. We will be out of the office from Friday 22 December 2023 until Wednesday 10 January 2024.
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"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.
