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Judy Dillon
This is a great idea, will certainly help with cash flow.

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2 months ago
Claudia Small
Yes, I think this is a great idea. I am on monthly GST, using Xero as my accounting system so it would be no extra work and it would really smooth out my tax payments. Yes please, yes please, yes please!

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2 months ago
Jan Booysen
It would be easy to move to a 2-monthly system based on actual income, since I already use an accounting package (Xero) to generate GST returns. The current system which is based on last year's income plus 5% is a stab in the dark since I cannot predict what income lies ahead, given the nature of projects I work on.

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2 months ago
Jackie Clark
We keep finances up to date anyway so not extra work. I'd be interested to know what is envisaged with 'more regular payments'. Our profit can vary greatly across months depending on when we place large orders from overseas, so monthly would be too regular. Perhaps quarterly?

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2 months ago
anne H
Prefer the way the payments are done now. Would be extra work for me the new way.

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2 months ago
Bruce Rea
Yes, I already do depreciation and PAYE each month. I enter it into MYOB with a recurring transaction. I can see exactly what profit the company makes each month. So to pay company tax each month would also be a good thing. This way if I make a good profit I pay a bit more income tax. If I make no profit then I pay none. However over Dec and Jan I sometimes run losses (because I take time off) so I would expect to offset this against what I had paid (as income tax on profits) earlier in the year. In other words it needs to be easy to transfer credits and debits from month to month and even from one year to the next year, in the event that I overpaid earlier in the year.

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2 months ago
Graeme Aitken
I think that the option of pay as you earn provisional tax is a good one. I am a freelancer and pay provisional tax 6 monthly. I almost always earn more in the first half of the year than in the second half, because the second half usually includes much more holidays/unworked time. But, this is not always the case. Also, my work flows can vary quite significantly because at the 6 month point, I can never be sure how much I will earn in the second half of the year. Pay as you earn will remove the uncertainty for me. If I earn more in the first half, I should pay higher provisional tax in the first installment - in line with PAYE people who have to pay as they go. If I earn more later in the year, I should not be penalised for something I could not know at the end of the first 6 months. So, the pay as you earn option is fairer to everyone. I say this knowing that my own individual circumstances will mean that usually I will pay more $$ earlier under this approach. No matter - fairness across the tax system should always trump individual advantage.

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2 months ago
Stephen Kellie
This sound fantastic what a great idea. Im definitely into this idea. Sign me up Please. regards Seve

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2 months ago
Kathy Dent
I think there should be a choice of systems for which one best suits the individual taxpayer.

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2 months ago
Dee Jones
I balance my books every Friday. I put the GST in one account, and the tax due in another account, so that it is always ready to go. I make regular payments throughout the tax year, even if a provisional tax payment is not due. So this expectation would change nothing that I already do.

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2 months ago
Steve Smith
As we are seasonal our income is so different from year to year. We use an accounting system on our computer and lodge our GST Return every 2 months. So if my accounting system works out my Provisional Tax on a 2 month system I would be happy with that. And it would be so much easier to pay the bigger amounts when I actually have money coming in!

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2 months ago
David Srinivasagam
I think it will be a great idea - will work fine .

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2 months ago
debra fallowfie...
yes-I think it is fabulous for a business like mine that can be quite seasonal .

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2 months ago
Janine Dickins
I think this would work well for someone like me who works on contract and has no idea whether my income will be less than $50K or more than $100K at the beginning of a financial year. i do think some allowance will need to be made for such things as fringe benefit tax or depreciation that happen year end. $5 million seems quite a high threshold for the turnover; however i don't have a strong view on this.

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2 months ago
Malcolm Laird
I'm a sole trader mainly offering graphic design services. For me the current provisional tax system works just fine and I don't want to change. I use "Money Works" software and tend to bring things up-to-date at the end of each GST cycle. So, remaining aligned with the GST cycle is the key thing for my situation.

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2 months ago
Trish Ngawaka
Would be fantastic to have this implemented. I prefer all my accounting and tax to be continuously up to date, takes away any financial stresses and helps with planning.

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2 months ago
Graeme G
I'm on six monthly GST returns so having more regular requirements would mean extra work. I can see that many people like the idea of a new regime - I'd prefer to be able to stick to status quo. As a self-employed person I could do without having to spend more time at the computer and unless you have fancy software that's likely to end up being what happens. And in fact I might end up having to pay more to my accountant because of the higher regularity of payments. That being the case, perhaps the best all round could be for there to be an option for either or. I can't see that Inland Revenue would be too worried as they will continue to receive their payments, but it would leave the decision more flexible for people to be able to opt in if they wish.

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2 months ago
Denise
I personally will find this a real annoyance, i think that trying to calculate the right amount of provisional tax on a monthly basis will be challenging and corrections will have to occur. There is no benefit to me although it is being sold as a benefit to the tax payer, it is actually more of a benefit to IRD. The number of people who will perhaps not have time to file will be then have more penalties. I always file, always pay on time and am organised, however this will take more of my precious time for no benefit to me.

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2 months ago
Darryl Jewiss
OK for us, we use MYOB, so it's very little effort

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2 months ago
Jon Hall
As a small business in the creative industry, and therefore with an unpredictable and shifting income, paying tax as I go would be hugely beneficial.

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2 months ago
Wolfgang Himme
It does not make much difference as normally our income is quite steady. As we do regular GST returns 2monthly, records are reasonably up to date most of the time.

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2 months ago
Greg Parker
Great idea. Much easier than guessing at the beginning of the year.

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2 months ago
Bruce Carey
The current system where I pay GST and provisional tax bi-annually works well for me

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2 months ago
Andre Buitendag
Absolutely this will be great . Easy for me with xero.

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2 months ago
Ian McGregor
I have done my own " provisional" tax for a number of years because I have always objected to paying tax in advance of when I earn the income. I do not have any formal accounting systems in place, but keep spreadsheet records of all income, and as I earn it I put the calculated (high) required amount into a separate banking structure, which I then pay on the normal Provisional sue dates (15 Jan - 07 May - 28 Aug). You will find confirmation of this in my IRD records Then at year end I have my son Chartered Accountant do my tax return. I don't believe I need to adopt AIM. In terms of turnover levels I certainly don't qualify; as a sole trader working part time only after retirement from full time employment I m at the lower income levels. The provisional tax system has in my view always been flawed (for the reason stated above) and I strongly urge IRD to adopt the KISS principle in all future endeavours. Ian McGregor

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2 months ago
Carrie
Yes I would rather pay as we went per our software accounts. Would make cashflow easier, then we would know where we were at, make things more current. I think this should be a business choice - not compulsory.

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2 months ago
Nicky
I think this would to be a good change, it would help considerably with the budgeting over the year. The accounting system is kept up to date.

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2 months ago
Delwyn Arthur
I have not answered previous few questions as they do not apply to me. However, having now read comments from other people I have a couple more: 1) I totally agree with the correspondent who said you can't rely on computers to do it all - Garbage in Garbage out is very true and becoming more so with the reliance on Xero etc 2) Fluctuating incomes a valid point 3) IS a previous correspondent suggesting that she could rely on the system to do monthly calcs for leases, HP and the variety of schemes in between? I presume these would need to be set up correctly in the system 4) reading some of the comments from whom I assume are small businesses owners or accounts / admin people, it seems fairly clear that they do no really know what accountants do at year end 5) I now think that this should not be compulsory even for larger businesses, possibly reviewable after a few years

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2 months ago
Nicola
I think it sounds like a great idea. The big bills 3 times a year hurt. I think it would be so much easier to have a little bill every month and keep on top of it

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2 months ago
Debbie Dorne-Ma...
Yes - I would very much like to pay shareholder income tax on a monthly or bi-monthly basis although i suspect there would need to be some sort of end of year "washup" available.

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2 months ago
LJ
As we already use an accounting package Zero I think it is a great option to pay your tax as you earn it in your current year. I find provisional tax doesn't work as you may have a good year income wise and the following year your income is down

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2 months ago
Ken Franklin
It has always been my opinion that the taxation system should not be such a witches brew that honest people cannot understand and manage their own accounting. If the IRD were to supply a suitable accounting template this ,could be used by small businesses as their only accounting system and securely shared on the cloud with the IRD. This would give both the IRD and their client an early warning if at any stage the client unwittingly drifts a bit too close to that "line in the sand" which currently can set of a rather costly investigation for the IRD. Go for it and knock the edges off it as you go. Ken Franklin

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2 months ago
Simone van der Plas
yes I like the idea of this as we usually have limited cashflow around the Xmas-Feb period and that is the period that we get hit with high percentage GAP tax so its bad timing, if this system makes life easier then I'm all for it.

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2 months ago
geoff ebdon
Good idea to keep payments in line with GST dates etc - ie bi monthly in arrears. Maybe need extra month at end of year.

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2 months ago
Dale Oxenham
This has to be better than the system you have in place at present with horrible yearly surprises. I agree with other comments and it's the detail of which reductions come off at the conclusion of end of year accounts of which with the suggested new system would either be a credit or small amount to pay. Our accounts are basically up to date month by month.

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2 months ago
Charles Brink
Anything that streamlines both the accounting process and payment of directly related taxes is a good thing, I believe. Provided, of course, it doesn't take too much time to comply.

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2 months ago
Mark Robinson
Due to the nature of my business I don't have a consistent revenue stream. Paying tax on a monthly basis could see me making overpayments of my tax which in turn is detrimental to my business. I think a quarterly tax payment would be a fairer system that would allow for monthly peak and troughs.

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2 months ago
MARTIN
why cant it be simply based as a percentage of the gst payment

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2 months ago
Rik
We run a small business from home. A large proportion of our expenses are entered into the system as end of year entries. It would increase our paperwork significantly if we had to do this monthly as well as increase our stress levels. We would basically be doing end of year entries 12 times a year, breaking them all down to a monthly figure and then reconciling back up at end of year, all with a small deadline- no thanks!! At the moment we have a nice period of time to get the end of year accounts done. If we were to do them on a monthly basis, then we would have much tighter deadlines. For me, juggling the accounts in between work, parenthood (including caring for a person with special needs), battling my own health issues, I think the added stress would have a price on my health.

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2 months ago
Michael Dunn
Income tax is a tax on income, or net profits. That comes from the Profit and Loss statements, with adjustments for depreciation and other items. Why do IRD need to receive any balance sheet information from taxpayers? Especially on an interim basis?

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2 months ago
Pamela Lockyer
Yes I would prefer to pay my tax, as I earn. I am an Independent Contractor, semi retired, and paying provisional tax is a killer.

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2 months ago
Mereheni
I agree this seems a fairer option then provisional tax - however I would question how year end calculations such as depreciation would figure in. Our accountant does this at the end of the year and for us to do monthly would require purchasing additional software or added accounting costs.

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2 months ago
Michael Shields
I am a surgeon. I had a small private practice for 35 years and now work part-time on contract to the local DHB as a sole trader. I have no inventory, no employees, few deductible expenses and minimal depreciation on assets. Since the early 1980s I have developed and used a 950 line spreadsheet, Visicalc at first, now Excel, to record transactions and do the calculations to provide all the data IRD requires with the bottom line zero dollars when the balance of the sheet is correct. I am happy with paying provisional tax and GST twice a year. I do not know from month to month what my future earnings will be although I have a reasonable guess at it. I find the estimation method of predicting provisional tax suits me very well because I can alter it easily on line in the light of predictable earnings, usually towards the end of the financial year. As the system stands I do not have to pay the second instalment of provisional tax and GST until after the end of the financial year so I am able to make late changes in estimation to get provisional tax within few dollars of the correct amount. I do not want or need to change to any other system of tax payment.

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2 months ago
Kay Hyland
If provisional tax payments could be made on the basis of cash transactions only (similar to the GST payments basis of calculation) then this could be a a useful method. However if all the year end accruals, debtors, creditors, stock adjustments, depreciation, expense apportionment and so on need to be done every couple of months under the AIM method it is a lot of extra time and cost for most small businesses. The current provisional tax methods are more likely to be used in the majority of cases. That way the business only uses its accountant for an annual review and annual financial statements and tax calculations.

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2 months ago
Sue Williams
As my income varies from one year to the next, AIM would be a much fairer way for me to pay tax. I use the Xero accounting software and reconcile my transactions on a regular basis, so it would be no more work .

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2 months ago
Carl Bates
This should be something that business are excited about. Companies that do not have their accounts up to date regularly are not going to perform at the level that they otherwise could. This, if effectively implement, should drive economic development positively. Would love to support with getting this message out in the right way!

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2 months ago
Noel Evans
I have been paying 1/12th of my estimated tax each month for 4+ years as a de-facto PAYE equivalent payment. I usually overpay slightly to earn a tax refund at year end. I did this because I wished to avoid lumpy payments throughout year and to time payments to income flow

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2 months ago
Scott Mesarich
As our business uses Xero accounting software and we work on accruals basis I think this is a great idea. Currently we send provisional tax payments to IRD every two months when we do our GST to avoid being caught out with a larger lump some payment later in the year. Paying more frequently sounds great to me.

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2 months ago
Kellie Mehrtens
Who cares about the accounting software or the ability to make Minor changes as they happen, MOST of the income and expenses is dealt with on a monthly basis, and it is a pain in the @ss saving for Income Tax, GST, ACC, insurance and all the other payments that just POP up every year or Quarter. Good work IRD

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2 months ago
Lief Johansen S...
Payments should be due well after 20th

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2 months ago
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