Getting ready for Christmas and holidays is so much fun right? Squeezing all that work in before Xmas Eve, trawling the malls or the online stores for the gift that's just right, browsing Air BnB for the perfect holiday spot, all the while a niggling little voice in your head is saying, ''don't forget you've got provisional tax due on the 15th of January..aargh!''
If you think you're going to struggle with cash flow and you haven't heard about tax pooling, listen up! The first thing you need to know is that tax pooling is 100% legit, Inland Revenue approved. The second thing you need to know is that it's not just for the big guns. Tax pooling is there to help smaller businesses get through too!
In a nutshell, there is a pool of overpaid tax out there that can be accessed by taxpayers who don't have the funds right now to make their tax payment by the due date. Or maybe the funds are available but would be better used in the business right now. By using a registered tax pooling intermediary you can name the amount of tax you need, the date the tax is due, and when you would like to pay it. Payment can be made in small instalments or in lump sums, its up to you. Inland Revenue gets paid on time, you get to choose when and how you pay, interest is lower than IR's and you can kiss goodbye to late payment penalties.
I regularly use tax pooling as a cashflow tool for my clients. Maybe you should take a dip this summer too!
www.oconnorca.co.nz