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Eligibility for AIM

Use of AIM by small and medium businesses. (Less than $5m)

AIM is most likely to suit small and medium sized businesses rather than large businesses because of the size and nature of tax adjustments required to accounting profits to calculate taxable income. The Government has considered what an appropriate  upper threshold would be for the AIM option and are considering a maximum turnover level  $5 million.  Businesses will elect online to use AIM and will need to show they have a good track record with Inland Revenue to use AIM.

 

Administrator: Apologies for the confusion, we have amended this section to  make clear that AIM is intended to include small business. Some of the comments below  were made before we clarified this section.

We are interested to hear feedback on  whether of maximum threshold of $5m is suitable. Would any larger businesses like to use AIM?

Comments

Kelly
Good threshold

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3 months ago
AJM
This would be better if 2M was the threshold, 5M too high for small businesses. My business would benefit from lower threshold,

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2 months ago
Andrew Mosley
Our turnover is under 2 million so it wouldn't suit our situation.

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2 months ago
Alf Smit
No threshold

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2 months ago
AJPinNZ
It is a perfect scheme for sole traders / contractors too. Some years could be 12 months of work, others 3. Agree that there should be no threshold.

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2 months ago
Pascal
I think $5m is too high for the eligibility threshold. It is the smaller businesses that would benefit from AIM. $3.5 million turnover threshold would be a better criteria

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2 months ago
Andrew
I think 5 million is high as I would consider a small busin essence to have a turnover of 1.5 million or less

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2 months ago
Administrator2
Sorry, the original question confused quite a few people and we've updated it since. AIM is proposed to be available for businesses with a turnover of LESS than $5m.

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2 months ago
Alastair Bell
yes, that is high enough to make paying tax simplier

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2 months ago
Aaron
Sounds fair.

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2 months ago
Anneliese Allen
$5M seems like a good threshold.

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2 months ago
Gwen
I think that threshold is too high. By doing this you are only seen to be helping the bigger businesses, when in truth its the smaller businesses that would benefit most from this structure. I think as long as the threshold is over 1million and the company is consistent with its IRD obligations and payments this should be available.

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2 months ago
Grant Pedersen
The $5 million dollar threshold sounds OK as long as it is adjusted periodically to account for inflation.

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2 months ago
Lorraine
Should be much lower to help small businesses.

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2 months ago
Grant Collingwood
Its a good threshold. We are way under that amount, and AIM would be too much work, and would not suit us at all. I personally think that if you are trying to make tax easier, you are going the wrong way about it, by implementing an expenside system that only larger businesses will use. They are the types of business who have accounting groups to do their work for them. You should be making it easier and more accurate for businesses who don't have the size and complexity where systems are already in place.

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2 months ago
terry
Not for me, but threshold seems about right.

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2 months ago
Hayden
I'd like it to be fractionally higher. In our industry $10m annual turnover is when various other obligations start; so it would be in keeping with that number.

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2 months ago
John Wyllie
I agree with the proposal and dont think it will cause undue extra workload. However i do disagree with the $5 million turnover. if this is supposed to help smaller businesses then it needs to be no higher than $1m

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2 months ago
Administrator2
Sorry, the original question confused quite a few people and we've updated it since. AIM is proposed to be available for businesses with a turnover of LESS than $5m.

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2 months ago
Julene
I hope this means its businesses under $5m that would have access to AIM- I cant comment on where the threshold should be but I want to be included!

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2 months ago
Roz Denley
Yes

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2 months ago
Alan Roberts
Good threshold

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2 months ago
Andrew Jefferies
I would love to use AIM. My business has a turnover of much less than $1 million, so the threshold (presumably UPPER limit!) of $5 million sounds fine to me.

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2 months ago
Jane Fitzgerald
Yes

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2 months ago
Justine Cummings
Why has the threshold been set at this amount? Why do smaller businesses with less turnover not get the benefit of this? I'm a sole trader with a much lower annual turnover than this, but AIM would greatly benefit me as I would pay the level of tax that reflects my earnings regularly, rather than paying too much, or too little, three times a year. Reducing the threshold would reduce the amount of input IRD staff would need to have with small business tax returns, resulting in greater efficiencies I would have thought?

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2 months ago
Andrew O'Donoghue
$5m to low. We have high turnover with a low margin. Net Income during the year can be quite lumpy making tax planning and payments difficult

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2 months ago
Tania Plotnitski
I think $5m is too high for the small businesses that this is aimed at.

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2 months ago
Administrator2
Sorry, the original question confused quite a few people and we've updated it since. AIM is proposed to be available for businesses with a turnover of LESS than $5m.

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  • agree0
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2 months ago
Liz
5 million annual turnover is so far off what our business is near! I would love this to take the pain out of paying the right amount of tax at the right time. I was thinking more along the lines of a couple of hundred thousand. If you are near the 5 million dollar mark you would probably have your accountant/CFO or dedicated staff member keeping an eye on things anyway.

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2 months ago
Garry Green
I think $5m is too high for the eligibility threshold. It is the smaller businesses that would benefit from AIM. $3 million turnover may be a better criteria

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2 months ago
Homman F Tapsell
good threshold

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2 months ago
Steffan BRUNNER
So are you saying that only businesses with turnover of more than the $5m turnover threshold can pay as you go? The way it has been phrased is confusing to me.

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2 months ago
Debbie Dawson
I thought this was confusing in the language used - made it look like you need to be earning $5m to use this new method.

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2 months ago
Graham Paul
Regarding the proposed $5M threshold for AIM, I think the dollar amount of revenue is irrelevant. What is relevant is whether factors exist such that the liability for provisional tax is expected to be variable or unpredictable to a degree that it is likely to cause the business significant cost or inconvenience if they are required to make regular provisional tax payments. So long as a business can put forward a reasonable justification as to why they should use AIM, and wants to use it, I suggest they should be allowed to do so. (By $5M threshold, does the IRD mean a threshold or a limit? If they mean threshold, that would mean that only businesses with revenue over $5M would be able to use AIM. If they mean a limit, that would mean that only businesses with revenue under $5M would be able to use AIM.)

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2 months ago
Melissa
We are under the threshold but we would definitely be interested.

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2 months ago
Daryl Thompson
5 million is to low as a lot of medium sized businesses would fluctuate around that threshold.

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2 months ago
Gijsberdina Bevers
$5 million seems like a high threshold, not a small business anymore.

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2 months ago
Administrator2
Sorry, the original question confused quite a few people and we've updated it since. AIM is proposed to be available for businesses with a turnover of LESS than $5m.

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  • agree0
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2 months ago
wendy sealey
That is a good threshold but why not everyone!!!?

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2 months ago
Greg Sise
Wording of the email wasn't clear. But if it works at $5 million, why can't it work at $10 million? $20 million?

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2 months ago
Haydn WEdding
surely it would be an advantage to the IRD to have the more regular payments coming in, rather than larger but less frequent payments? I don't see why there needs to be a threshold at all

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2 months ago
Mandy Turner
$5 m I thought it was to help small - med business

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2 months ago
John Webber
I agree with the proposal. However as I am in an agricultural based business, with the seasonal vagaries we have, the $5M threshold is too low and needs a higher limit.

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2 months ago
Administrator2
Sorry, the original question confused quite a few people and we've updated it since. AIM is proposed to be available for businesses with a turnover of LESS than $5m.

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  • agree0
  • disagree1
2 months ago
Alex Wallace
Your initial email is worded poorly as it implies the threshold value of $5million is the minimum, when it is in fact the maximum. - But yes I think the threshold is fair.

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2 months ago
Anne Tucker
Yes it is a good level.

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2 months ago
catherine mcwatt
Higher threshold would be good

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2 months ago
John W
Sounds good

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2 months ago
Hazel Kirkham
The use of the word 'threshold' is confusing if the $5m is actually the ceiling below which a business will be eligible. This seems like a sensible ceiling.

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2 months ago
Bob D'Ath
I'd prefer to see a higher cutoff point. What if you are over one year and under the next or you thought you'd be under $5m but you end up over? Why have a cutoff at all? Maybe an opt-in, opt-out approach is feasible?

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2 months ago
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