Many of our Clients are struggling with the Provisional tax and GST payments due on the 28th August - we have put together some information and advice, we hope this is helpful.
The 1st provisional tax for 2021 is due on the 28th of August.
All our Clients who pay provisional tax will have received notices from KTS over the last few weeks which show the amount due on the 28th of August.
This provisional tax is calculated on the actual if you have completed your 2020 accounts, or on the 2019 amounts plus an uplift of 10%. Many of our clients will have experienced a vastly different outcome for this same period due to Covid, and may be having difficulties in paying.
Our advice to Client's is to pay what you can, if you can manage to pay in full it's best to do so. If you can only manage to pay part of the amount due, then go ahead and pay what you can.
If you are unable to make full payment, we can arrange a payment at a later date that will mean there will be no late payment penalties charged. This facility does have an interest cost, however it is significantly lower than the cost of use of money interest charged by IRD and of course removes any late payment penalties.
The 2nd instalment of provisional tax is due on the 15th January 2021, at that time we will be in a better position to assess the profit downturn that clients may have suffered and then look to potentially amend payments to balance the situation.
GST is also due on the 28th of August, which makes it a double whammy. The same advice as for provisional tax also applies for GST - If you can pay it, do so, if you can't, just pay what you can and contact IRD via MyIR to arrange a payment program.
If you are worried
Please be in touch with us if you are concerned or anxious about these payments, we are happy to take your calls and reassure you that we are working together with you to achieve the best possible outcome.
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