Are you struggling to pay your tax? You have options.
Updated: Apr 3, 2020
Businesses affected by the COVID-19 pandemic will be feeling the financial squeeze. Tax is probably the last thing on your mind, but it is important not to bury your head in the sand and hope that it will just go away. The Inland Revenue Department (IRD) has tax relief option which will be able to help you manage your tax obligation and minimise stress. One of the ways to make payments more manageable is to set up payment instalments with the IRD. Instalments can be done for the following tax types;
- GST
- FBT
- Income Tax
- Resident Withholding Tax
- Working for Families
- Gaming Machine Duty
- Tax Credit Claim
The minimum repayment amount has also been reduced to help make cash flow easier. You can set up payments for as low as $20 weekly (previously $50), $40 fortnightly (previously $100) and $80 monthly (previously $200). The idea is to start and slowly chip away at it.
A gentle reminder – even if you can’t pay the tax amount, you should still file your return. This is important as the Government can continue to respond to what is happening in the economy and make correct payments to people.
Another bonus in the current economic climate is that IRD can remit the use of money interest and penalty for late payment of tax due to COVID-19. These apply to payments due on or after 14 February 2020. To qualify for UOMI write-off, you or your business will need to; - Have been significantly affected by COVID-19
- Have had income or revenue reduced by at least 30% compared to the same month 12 months earlier
- Explored other avenues for financial support such as seeking additional finance from your bank
If you do not know how to go about, or how much you can afford to pay, please contact us. We are here to help you.
#RemitUOMIandPenalty #TaxDebtNZ #COVID19TaxReliefNZ
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