Provisional tax is due soon – there are several options to help if your cash flow is looking a little sticky, plus new legislation raising the provisional tax threshold. We can work with you and Inland Revenue to help.
The first provisional tax payment for the 2021/22 financial year will be due on May 7.
Cashflow issues?
If you’re worried about paying your provisional tax, it’s important to work with us and Inland Revenue (IR) to find a solution. You may be able to use:
- Instalments – we can work out a payment plan on your behalf with IR.
- Tax pooling – once it’s set up, tax pooling lets you manage provisional payments effectively
- Covid relief – re-estimations of provisional tax, removing penalties and hardship write-offs are available from the IRD.
You may also be able to apply for the Small Business Cashflow Scheme (SBCS). Your business needs to be eligible, including having a 30% decline in revenue; we can demonstrate this for IR and apply for the SBCS on your behalf.
You may no longer need to pay provisional tax
New legislation means if your provisional tax amount is less than $5000, you don’t need to file your tax bill until February 7 next year. This is a permanent change from the previous cap of $2500. If you think you fall into this category and we haven’t been in touch, do let us know.
Questions or problems?
Email us or give us a call – we can work with you (and Inland Revenue) to manage your cashflow, making it easier to pay your provisional tax throughout the year ahead.
