The end of the tax year is around the corner, so this is a quick reminder that your terminal tax payment is due on 7 April.
If cashflow is a problem and you’re not confident in your ability to make your payment, please get in touch. We understand that the past 12 months have been extremely tough for many businesses and clients, so you’re not alone.
Ways to avoid penalties and interest
Paying tax late means Inland Revenue will charge you use of money interest (UOMI) and late payment penalties. These can really add up and start to make your cashflow situation worse.
There are several ways to avoid this – we can work on your behalf to choose the right option and carry out any applications or paperwork.
Because of the pandemic, the IRD is now well set-up to provide tax relief for businesses which have struggled with lockdowns and border closures (you can read more here). This flexibility has been extended due to Omicron.
There are ways to write off UOMI or even tax (in the case of serious hardship). Another method is to set up an instalment payment with Inland Revenue, or apply for an extension to your tax payment dates.
Remember, we can apply on your behalf, you don’t have to do this yourself. You also have the option of using tax pooling to borrow at a lower rate of interest than the IRD will apply.
Don’t just ignore it
If you can pay your terminal tax, make sure you do so on or before 7 April. If you can’t, please don’t ignore it, even if it seems too stressful.