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Tax time has come around again.  In particular, Terminal and Provisional taxes are due in April and May:

2019 Terminal Tax  –  due 7 April 2020

2020 Provisional Tax, 3rd instalment  –  due 7 May 2020

Our recommendation is to pay the tax in full if you can, especially the 2019 Terminal Tax.

If you cannot pay in full, pay what you can afford.  Then consider options for the balance as below.

1. 1. Estimate your 2020 Income Tax.  This should only be done if you consider your income up until 31 March 2020 is significantly reduced. *
   2. If you consider your income up to 31 March 2020 is significantly increased and your tax will exceed $60k please let Wendy know.
   3. Pay what you can by the due date and then consider Tax Pooling the balance.  Tax pooling is where you use a tax intermediary to pay the tax, rather than paying Inland Revenue direct.  In effect, it’s like getting a loan so that the tax is paid on time which helps you save on penalties.  For more information on this, or to tax pool your balance please contact Alicia.
   4. Inland Revenue have stated that they “may agree to write off UOMI at our discretion“.  It is likely that Inland Revenue may relax this further, but in the interim we would advise caution in relying on Inland Revenue discretion.
   5. Keep safe and calm.

*  If you want us to review your income to date please contact Wendy who will co-ordinate having a tax projection done.  Some clients have already asked to have the figures done early.  If you do not hear from Wendy or receive a link to your online questionnaire by the 7th of April please contact her.

Please contact us if you want to discuss anything further.  We are all available via email, phone and text, and are trying to process queries as soon as we can.