Should AIM be available to those who don’t use software?

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I use Reckon, and reconcile to bank. So I have full records but don't use an online package that will be doing AIM. I would like to pay as I go also.

Isn't it part of the Tax Act that business tax payers must operate to minimum accounting standards - this shouldn't need to change

Yes, it should be available to all. IRD should provide online calculator for customers who do not have approved software to easily apply AIM method.

Absolutely, not all businesses have a need for accounting software but would like to use this method for paying their provisional tax. Having a software package as a requirement could generate a cost for them that they don't necessarily need. Or in other cases, some clients genuinely couldn't cope with running a software system. We have a large number of clients still who aren't from this "technology age" and struggle with the idea of accounting software. They are happy with their manual cashbook and I wouldn't like to stress them out with trying to learn new technology that they have no interest in, and are likely to make a lot of errors causing them a costly accounting bill when we have to fix it every 2 months.

"What minimum accounting requirements and specifications should be expected?" "At a minimum, to use AIM we expect a taxpayer to maintain a double entry accounting system with period end adjustments and reconcile this to a bank account." What a odd question. When you seem to have just answered it yourself. Not sure what the IRD is concerned about here. What are the current minimum accounting requirements and specificiations for provisional taxpayers and why should it be any different for those using AIM? To me, this looks like part of the current trend towards more government electronic intrusiveness for no obvious good reason. I get the impression that AIM is designed for medium-sized businesses - those that use expensive accounting software. Which is fine, but call a spade a spade. On page 8, there is much fanfare about how important small businesses are to the economy and how they face relatively heavy compliance costs. Then Chapter 3 is devoted to AIM which won't actually suit small business taxpayers as is explained on p32. Huh - so what exactly was the point again??? From the comments here - and I agree with them - this doesn't do anything for the sort of small business that can get by on a simple Excel spreadsheet. Apparently 69% of enterprises have zero employees. What's the bet that about 69% of enterprises don't use either tax advisors or accounting software or both. In my case, my income is infrequent and unpredictable. I'd be happy to pay a percentage straight out of my bank account to IRD each time I receive income. Why not partner with banks and come up with a system for small business, such that any deposit into a designated bank account is assumed to be income and has a percentage automatically paid to the IRD? Tax paid and owed are then reconciled - as now - in the end of year tax return and a percentage calculated for next year's automatic payments? Make this system available to provisional taxpayers below a certain turnover or income threshold? Would that be so hard?

Yes. I use Excel which is perfectly adequate as I am a one-person self employed consultant.

Yes, it should be available to anyone. Just as with filing your IR3, you are responsible for the data that you submit. If you submit inaccurate data, whether throughout the year for provisional tax or at the end of the year with your return, doesn't matter. I don't use any of the known software brands for my tax calculations, but a bespoke online spreadsheet. It does the job, and the figures are 100% accurate with what my accountant produces at the end of the year. I'd think that as long as one is responsible and has a good track record, they should be allowed to use AIM even without using the established software products.

I do not use accounting software, using spreadsheets instead. I reconcile these monthly against bank accounts or two-monthly when doing my GST return. My accountant checks everything and calculates tax at year end. I see no need or advantage for AIM for me.

I think very small businesses should be able to utilize AIM, if they wish to, without the need to use particular software and the associated expense of purchasing it. It should be an option.

Yes it should - I don't need to use an accounting package, but still want to pay as I go using AIM

I definitely want to use AIM (actually assess and pay prov tax on this basis now) and use MYOB. While businesses of any size would be using an accounting system now, it shouldn't be mandatory. Requirments if not controls exist to ensure filings are accurate however compiled.

As a sole trader with a fairly modest income, spreadsheets work fine for me - I'd be pretty disappointed if I had to invest in accounting software to be eligible for AIM.

Yes please - I use a manual cash book and "tally up" each month

Definitely, its even more important to businesses that are too small to have accounting software.

As a sole trader I would have no problem making monthly tax payments. I don't think that the use of accounting software should be a pre-requisite.

I totally agree that this system should be available to all uses, as surely the aim of it is to reduce both the level of confusion around Provisional Tax along with the risk that people aren't paying what they need to and therefore are getting penalized....Surely our Tax system should be striving to make this simpler for everyone!

Not all of us provtax people are 'businesses'; we should be able to use AIM with an IRD approved calculator

We use a manual cashbook & reconcile to bank statement each month. If AIM is geared towarded smaller taxpayers, why would they use an accounting system?

Hi don't use Xero but in my old(small) company used the ratio method to pay tax & GST 2 monthly - this sounds almost identical. Unfortunately I can't use it for my current (small) company because I requested it in April & the request had to be in over 12 months before you commence. Hopefully IRD will be more flexible with their new scheme

Yes it should be available to be filled out online just like a monthly deduction form for PAYE; whether the user calculates their figures manually or using software.

I am self employed , using spreadsheets for accounting. Income varies during the year, but I see no problem in payment of provisional tax two monthly at the same time as GST. GST working is straightforward to work out, and provisional income is not difficult either. IRD could provide a worksheet similar to GSt for sole traders and consultants such as myself.

Yes

I am a one-man-band organization & earn all my income from a single source outside of NZ via monthly payments - so I find that all I really need to keep track of income & expenses is a spreadsheet. I'm not too worried about paying 3 provisional tax payments per year, but estimating my income for the next financial year is tricky because it can fluctuate a lot - so the prospect of being hit with penalties (errrr, sorry - "use of money interest") for under-estimating is a bit of a worry. If my spreadsheet accounting method is deemed adequate, then I'd certainly like to be paying provisional tax monthly.