Estimating your provisional tax can be difficult: pay too little and you will be hit with UOMI and other penalties; pay too much and valuable working capital is locked up at the IRD earning a minimal return.
The solution is to deposit your provisional tax payments into the tax pool held at Inland Revenue to reduce your exposure to UOMI and increase your return on overpayment.
Save up to 30% on your UOMI bill by buying the tax you need from the tax pool instead of paying Inland Revenue UOMI.
Increase your return on overpayment by selling excess tax for up to double what Inland Revenue will pay you in UOMI.
- Cashflow tight?
Treat your tax payments as a pre-approved overdraft facility - the funds can be withdrawn and financed at competitive rates at any time.
- Tax on the right dates?
Swap excess tax payments for tax on a later or earlier date you require and maximise your return.
- Estimated correctly?
tax pooling solutions will transfer your tax payments from the pool to your taxpayer account at Inland Revenue at no charge.
An additional benefit of using tax pooling solutions is that if you have an amount of income tax to pay for a prior year due to a reassessment by Inland Revenue, you can purchase back dated tax from tax pooling solutions at interest rates that are up to 30% cheaper than Inland Revenue's UOMI rate. By purchasing back dated tax on the correct payment date, Inland Revenue will not charge you UOMI. This can be used for most tax types, not just income tax.
Depositing into the tax pool is free and you'll never pay more than if you had paid directly to the Inland Revenue. Don't pass up this opportunity to improve your bottom line.
Talk to us about this.