Tax Management – Resolve your holiday cash crisis
Free up working capital by paying your provisional tax when it suits you.
The period just after Holidays can be tough for many businesses.
In fact, more than half of those who responded to an Employers and Manufacturers Association poll said they experienced cashflow constraints between January and March every year.
There are several reasons why.
• Holiday Pay demands prior to the holidays
• Closing down over the holidays reduces cash flow
• The period following the holidays is traditionally slow
• GST and Provisional tax falls due 15th January, straight after holidays
On that final note, the Inland Revenue (IRD) is quick to reinforce that if you do not pay your taxes on time you will feel the repercussions in your back pocket. This will include charging late payment penalties of up to 20% pa and use of money interest (UOMI) of 8.4%.
Fortunately, Tax Management NZ (TMNZ) has an IRD-approved solution that allows businesses to resolve holiday cashflow issues. This solution is called Tax FINANCE (TF). TF lets you pay provisional tax when it suits you – without incurring late payment penalties and UOMI.
It is cheaper than many other traditional forms of finance – rates start from below 6% – and this extra funding does not affect existing lines of credit.
For instance, it costs just $145 to defer a $5,000 provisional tax payment for six months.
Approval is guaranteed, and no credit check or security is required.
Here is an example how TF (Tax FINANCE) works
1. You decide you need to delay payment of your provisional tax of $5,000 for 6 months
2. You pay TMNZ a one-off, tax-deductible finance fee of $145
3. TMNZ then pays the $5,000 into an IRD account held by the Guardian Trust (GT).
4. Six months later, you pay TMNZ the $5,000 provisional tax. Any IRD late payment penalties and interest will be reversed when transfers are complete.
How simple is that?
Please contact Accounts Online to find out more.
Its like you read my mind! You appear to know
so much about this, like you wrote the book in it or something.
I think that you could do with a few pics to drive the message home a little bit, but other than that,
this is excellent blog. A great read. I will certainly be back.
What timing with the blog post I had pasehurcd MYOB for the PC a couple of months ago and finally got around to registering it today. For some reason you have to put a serial number in and your company name and it then generates a company number’. The online activation failed to work so I tried the automated phone activation. Again it failed with the response sorry an error has occurred . It read out a phone number once and the hung up on me. Yeah thanks, great service.I then called their customer service number but they were closed. WTF? This is software for small businesses where people often run their companies at all hours. MYOB is also a reasonably large publicly traded company. How hard can it be to provide basic customer service after hours?If Xero gets its pricing and product right they will have a good chance of succeeding and MYOB will have no idea of how to respond. I just don’t think they get simplicity or service.
Hello
I am sorry you have had difficulty registering your MYOB. Accounts Online are accounting software specialists. Please call Leigh-Ann 04 499 9035 and we will help step you through the process
Warm regards
Leigh-Ann
Thanks for sharing your info. I truly appreciate your efforts and I will be waiting for your further write ups thanks once again.