Tax pooling allows you to buy someone else’s tax overpayments, and use these to settle your outstanding taxes with Inland Revenue at the original due dates. We use Tax Traders Limited, who are an Inland Revenue approved tax pooling intermediary, for this. This can assist you with reducing interest/penalty charges applied by Inland Revenue or with cash flow relating to tax payments.
The services that Tax Traders offer allow you to:
- Purchase tax to cover a missed income tax payment (and therefore avoid penalties and some interest).
- Finance an upcoming provisional tax payment (delaying or spreading payments by up to 22 months).
- Deposit tax payments to the tax pool (instead of to Inland Revenue) when provisional tax payment amounts are uncertain.
Tax Traders also offer various payment options to suit you, such as making a single payment, paying interest upfront, weekly/fortnightly/monthly repayments, or pay as you go.
The interest and penalty savings to you by ensuring your tax is paid on time can be significant. Interest charged by Tax Traders for these facilities is less than what Inland Revenue charges and in most cases can be less than what your bank would charge on an overdraft or loan facility.
If you would like more information on this, please do not hesitate to speak to one of the team who will be able to look at your individual situation and provide details on how Tax Traders may be of benefit to you.