Provisional Tax Worries?

Wellington Tax Planning Services

Do you have trouble understanding provisional tax and why it never seems to relate to your current profit?

This is likely to affect your cash flow big time and give you unwelcome surprises.  When you have a drop in profits, you don’t need to be paying extra tax based on last year – you’ll have far better uses for these funds.

Tax Calculation

Proactive Tax Planning

Paying sufficient provisional tax comes down to two things:

  1. Understanding the provisional tax rules and options;
  2. Proactively calculating what tax is due.

When it comes to paying provisional tax, the easy option is to pay what IRD are expecting which is likely to be based on the previous tax year.  Unless we can say every year is the same, then why not base our provisional tax on how we are currently trading!  This is how we approach provisional tax for all of our clients.

Contrary to what you might have been told, there are also other options for calculating provisional tax that we use; including tax pooling and the Accounting Income Method.  We offer the most appropriate option to each client.

It Comes With The Service

Proactive tax planning is how we roll.  It is what we offer each and every client on a monthly plan.  After all, we’re here to help you in this present time, not making guesses based on last year.