Get your pre-holiday cashflow sorted

Date: 7th December 2017

We don’t want to put a damper on your summer holiday plans, but as you are probably aware, provisional tax and GST payments are due on 15 January. The timing of these payments isn’t ideal as many of you will be indulging in the delights a summer break offers.

But it’s important that you don’t neglect your tax obligations – especially as Inland Revenue will charge 8.22% interest and late payment penalties if you don’t pay on time.

Here a few handy reminders and tips for getting cashflow sorted prior to embarking on your well-deserved break!

Key tax dates December 2017 –  January 2018

Take a quick scan through the list of tax due dates and make a note of the relevant payment dates. Or even better, schedule your payments now.

DATE CATEGORY DESCRIPTION
5 December PAYE Large employers returns and payments
20 December PAYE Small employers return and payment
Large employers return and payment
RWT RWT return and payment due for November
NRWT / Approved Issuer Levy Payment and return for November
15 January PAYE Large employers returns and payments
Provisional Tax Instalment due
GST Return and payment due for November
22 January PAYE Small employers return and payment
Large employers return and payment
FBT Third Quarter return and payment due
RWT RWT return and payment due for December
NRWT / Approved Issuer Levy Payment and return for December
29 January GST Return and payment due for December

 

Pre-Holiday cashflow tips

Now take the next step in getting tax-ready before Christmas by looking at your finances.

  1. Review your books – make sure records are accurate and up-to-date to get an indication of your overall cashflow position
  2. Prepare a quick budget – Figure out what you are going to need to cover overheads while on break, especially if it’s going to be several weeks before you start earning again.
  3. Complete jobs early – prioritise work that can be finished quickly so you can bill clients and have money in the bank before Christmas. Check out Xero’s new ‘pay now’ feature for invoices.
  4. Check out your debtors ledger – see if those who owe you money can pay early (sweeten the deal by offering a discount). Chase outstanding invoices.
  5. Buy time with creditors – if needed, explain your situation with creditors and see if you can pay a little later.
  6. Consider tax pooling – IRD-approved tax pooling intermediaries, such as Tax Management NZ, offer payment plans that let you choose how and when you pay provisional tax. This avoids late payment penalties and the interest is charged at a rate lower than the IRD’s.

As always, we are happy to work alongside you to come up with a strategy and talk through your options. Please get in touch.



Posted in: Alexandra, Latest News, Queenstown, Wanaka