Having trouble meeting your tax deadlines?

A simpler solution is available.

Instead of incurring penalties for missed or upcoming tax payments, you can take advantage of tax pooling.

This approach lets you purchase overpaid tax amounts from other taxpayers.

The purchased tax is then credited to your IRD tax account on the original payment date of the seller.

Although a small interest fee applies—typically lower than the IRD rate—you avoid late payment penalties.

The process is streamlined, requiring no credit application; however, it can be a bit complex, so we suggest consulting your accountant.

Often, accountants can secure a slightly discounted rate for their clients.

For example: If a tax payment due on 28 August 2024 is missed, you can purchase it from the tax pool to avoid penalties, with the payment deferred as late as mid-June 2025.

Similarly, if a tax payment is due on 7 May 2025, you can finance it so that the deadline extends to as late as mid-June 2026.

There are additional variations of tax pooling designed to improve business cash flow.

Your accountant can explain which options best suit your needs.

Only a limited number of tax pool providers are authorised by legislation and are subject to strict monitoring.

Funds typically flow through entities such as The Public Trust Office to ensure the security of deposits.

At David Hooper CA Limited, we exclusively partner with Tax Traders, enabling our clients to benefit from reduced interest charges.

For more information, visit: https://home.taxtraders.co.nz/who-we-are

Let us help you get your head above water and keep the monkey off your back.

Get in touch today at [email protected] or call 09 421 1635.