IRD have announced significant concessions in relation to payment of tax, and we can help you work through how this applies to you and your business.
If you are unsure as to whether you should / could pay any upcoming tax payments (including GST and PAYE), then please get in touch with us now. Remember – you need to take action now in respect of your cashflow and tax planning.
If you haven’t prepared your cashflow forecast for the next 12-18 months, then this really is the most essential thing you should be doing right now.
Your forecast will be your roadmap so you can navigate with confidence through the uncertain times over the coming months.
The key points that you need to know in respect of IRD payments are:
- IRD have announced new proposed loss carry back provisions. These could potentially result in refunds of 2020 provisional tax already paid. If you are unclear whether these could apply to you, get in touch with us now.
- If you can’t pay, get in touch with IRD now, or we can liaise with IRD on your behalf.
- IRD’s expectation is “that those taxpayers who can pay should continue to pay on time”. However, the only way you will have certainty as to whether you can pay will be through having a forecast for your business. If you don’t have a forecast, then you don’t have a plan!
- IRD have acknowledged that “Tax may not be the priority in order to keep the business going”. In other words, payment of tax may not rank equally in importance with other outgoings when it comes to managing your cashflow.
- IRD will deal with each proposal in good faith, on the basis that each taxpayer also deals with IRD in good faith. This is a 2-way commitment requiring trust on both sides. Part of your commitment to IRD is having a forecast. Without this, it will be difficult to demonstrate good faith.
Ultimately our message to all our clients is: Having a forecast is essential if you want to get through the next 12-18 months, and is arguably the most import thing you do right now.
If you do nothing else, make sure you have a forecast. We cannot stress the importance of this too strongly.
Remember – we are here to help you get through these tough times – just get in touch