Leaping through Lockdown

Although it is hard to imagine right now, this time will pass.
It’s important you make the most of it so you can be prepared for the future.

Following the 3 steps below will help give you clarity, purpose, and better outcomes when we are on the other side of this and dealing with a new normal.

1. Budget – make/update your budget both in life and your business.
2. Spring Clean – do this both in life and your business. It is never a pleasant job but always makes you feel good. Get rid of the clutter, put stuff in a ‘to throw out’ box or if tidying up computer files create an ‘archive’ folder. Think of this like you are pruning a plant: when you cut back a plant, it grows back better.
3. Plan – write down your plan/strategy together. Look at systems/processes, possibilities for new learning and training. What are the opportunities going forward and how can you prepare?

Tax pooling is a service designed to reduce interest costs and penalties, and provide payment options for provisional taxpayers.

How does it work? For underpaid income tax, you can settle what you owe IRD by paying through a tax pooling intermediary such as Tax Traders at an interest cost lower than the interest IRD charges on underpaid tax.
The payment you make is essentially a purchase of tax that Tax Traders pay to IRD using the original date the provisional tax was due.
As this payment is date-stamped, IRD treats the tax as paid on time once it has processed the transfer from the tax pool to your IRD account. Any late payment penalties and interest showing on your account will be reversed once this happens.

When might this be useful? Tax pooling can be used if you have underpaid income tax for the current tax year or the one just completed.

Is tax pooling secure? Tax pooling intermediaries are registered with IRD and operate under legislation set out in Income Tax Act 2007 and Tax Administration Act 1994.
The system was proposed by IRD so private markets could provide ways for provisional taxpayers to manage their income tax obligations and reduce their compliance costs.
The tax pool accounts operated by tax pooling intermediaries are held at IRD and managed by an independent trustee. The independent trustee also oversees the bank accounts in which your payments are made.

For further information, have a read of the Tax Traders website here.

Whatever the size or shape of your business, the New Zealand Business Number (NZBN) will make doing business easier, faster and more professional.

Here’s how:
• Search the NZBN Register and you’ll have details for all the businesses you deal with at your fingertips.
• Know your suppliers’ NZBNs and process and pay their accounts more quickly.
• Using your NZBN means you won’t have to repeat your key details to customers and suppliers.
• It pre-populates online forms with your information to save time.
• Always deliver goods to the right place by getting alerts when your customers change their physical address.

More than 675,000 Kiwi businesses have their NZBN, do you? Head on over to nzbn.govt.nz to find out more.