Tax Payments
Through this time many businesses are concerned whether they will have the ability to meet their tax obligations. While that may be the case, it is important that you do keep up to date with your filing requirements even if you can’t make payments.
 
If you are concerned that you may not be able to make you tax payment in full or on time, it is best that you advise the IRD through your myIR securemail. However, if we manage your taxes feel free to get in touch and we will be able to assist you.
 
Income Tax
  • We can negotiate an instalment arrangement with IRD. This allows you to pay smaller amounts over time rather than one lumpsum. IRD may continue to charge interest which is currently 8.35%. See below the details around interest remissions from IRD.
  • Tax Traders is a tool we use which allows you to delay tax payments to a future date. Managed by Public Trust, Tax Traders matches people who have overpaid their tax with those that have underpaid. Interest on this is typically lower than what IR charges
 
To find out more about Tax Traders, either check out their website here or email using the button below.
 
UPCOMING INCOME TAX DATES
Terminal Tax (with EOT) 7th April 2020 Provisional Tax 7th May 2020
 
Other Tax Types (GST, PAYE, Student Loan, RWT, DWT)
  • Like Income Tax, we can negotiate an instalment arrangement with IRD. This allows you to pay smaller amounts over time rather than one lumpsum. IRD may continue to charge interest which is currently 8.35%. See below the details around interest remissions from IRD.
  • Unfortunately, Tax Traders is unable to be used for non-Income Tax Types.
 
Updates from IRD
The Government and IRD are working through five key proposals in relation to tax:
  • Giving Inland Revenue the discretion to remit use-of-money interest (UOMI) for customers significantly adversely affected by COVID-19.
  • Increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021.
  • Increasing the small asset depreciation threshold from $500 to $1,000 – and to $5,000 for the 2020/21 tax year.
  • Allowing depreciation on commercial and industrial buildings from 2020/2021.
  • Removing the hours test from the In-Work Tax Credit (IWTC) from 1 July 2020.
Hudson Taylor Chartered Accountants