Are you worried about paying your terminal tax bill on 7 April?
We understand how terminal tax can sometimes put pressure on your business’ cashflow. Even more so, if it’s worked out that you also owe Inland Revenue (IRD) for interest and late payment penalties on the unsettled liability. And, if you add into the mix that looming provisional tax payment due on 7 May (the final instalment for the 2015 year)… well, it can add up to a few sleepless nights, right?
If this describes your situation, stop losing sleep and pick up the phone. Let’s look at the issue squarely, run the numbers on your options and take prompt action before your tax bill escalates.
How could I have underpaid provisional tax for the 2014 tax year?
It could have happened if you didn’t keep up with your provisional tax payments throughout the year.
Or it may have happened if you had a better year in 2014 than you expected to (‘yay, we made more money’), then you probably owe more tax than you expected to have to pay (‘yay…’).
When your business income fluctuates, it can be hard to estimate exactly how much provisional tax you should pay. That’s why it’s a good idea to keep track and let us know about peaks and troughs through the year. This is something we can help you with in the future.
What if I do owe tax for the 2014 tax year?
If it works out that you have tax to pay, there are a number of options available to you.
It could be possible to negotiate a payment arrangement with IRD and make payments over time, borrow money from the bank or family, or possibly even buy overpaid tax from tax pooling companies.
If you have any concerns lets look at it in the context of your total debt position and see what options are most economical for you in the longer term.