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Izak
I like the current system. I do not have time for extra work.

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2 months ago
william morris
As our cash flow changes dramatically through the year we definately prefer to pay in three instalments rather as in place now

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2 months ago
J
I already do this. I basically pay my provisional tax each time I pay GST (which I choose to do every 2 months). This way I keep up to date with paperwork and don't have a surprise at the end of the year. It also means when I do my IR3 and IR10 I already have all the data I need and just have to add it all together.

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2 months ago
CHRISTINA WHITE
We make payments to our provisional tax weekly in advance I find this takes all the stress out of the payment by certain dates especially when you have a large GST return to pay at the same time (we also make payments to the gst in advance) I would like to continue as we are in making the payments in advance on a regular basis this eases the cash flow

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2 months ago
jared licht
Yes, I think this would make life easier.

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2 months ago
Kelly Barnes
I don't think that is in dispute, but I would rather have the money earning interest with us, than pay money AHEAD of time that could be making us money. WE do however put these funds aside all year round and do understand that some people do not and find themselves in hot water, come tax time, so it could be helpful for them. I think it should be optional OR a trial given to businesses, whereby, if they have a record of not being able to pay their tax bills, it THEN be made compulsory to pay small amounts more regularly.

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2 months ago
Haydn Wedding
Surely paying one month or two months in advance based on the last one or two months turnover would be more of an advantage. If you had a huge year last year, the current provisional tax payments are over-inflated if you have a poor year this year. So in the long run under AIM you can end up making payments that are much more relevant to your current situation, which would balance out any potential interest you earn through putting money in an interest bearing account. (which you will then pay more tax on!)

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2 months ago
Mark Jones
i have been skipping thru a few of these Q&A thinking others have already answered or its either way to me. But the more i look at all the Questions being asked the more i feel the entire tax system needs an over haul, surely there is a simpler way to make people pay there fair share of tax. 1 tax rate for all transactions of something simple, of course this may put a lot of people out of work if the system is made easier but the growth to small businesses may be great as we can work out the tax we owe easily instead of paying thousands to accountants.

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2 months ago
Briar Harland
Yes - I see this as being a huge advantage and ultimately easier for business.

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2 months ago
Jennifer McGreal
As a small trust it would suit me to pay provisional tax along with the GST payments. We receive rents on a regular basis and it should be fairly easy to include a provisional tax payment throughout the year.

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2 months ago
Florence Southan
Yes paying Provisional tax same way as GST would be beneficial.

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2 months ago
Haydn Wedding
THis would be a much easier way to pay tax for a small business

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2 months ago
Kevin
Certainly an advantage and a fairness issue. The old system is unfair in that over estimate income and pay too much provisional tax it is a cost as interest paid is very low. On the other hand get the figure too low and there is a significant and unwarranted penalty. With using Xero records are always up to date.

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2 months ago
Allan Blithe
already replied saying Im against this being forced on small business, fine if its optional. a lot more work for little sole traders like myself who do manual accounting. Plus end of year with depreciation etc there would be a big clean up amount. Would rather have the money in my account earning me interest rather than the government coffers. I get a contract payment each fortnight and my simple and very effective way of putting aside money is I take the gross amount of income as it comes in, split off 25% and put that in a separate account and that covers my GST obligations every 2months and accumulates the excess for provisional tax obligations. I put another 40% of the gross into a business expense account which pays all the business out goings. The remaining 35% I take as mine to spend. Ive been doing this for 6 years and it works perfectly for my situation. I always have the money sitting there to pay GST and Provisional Tax. neither of these taxes are hard if you are organised and budget your money factoring these bills into your cash flow.

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2 months ago
Sandra Kraakman
As with anything new - the devil is in the detail - the track record is not that flash for the introduction of new software within our government departments and the way in which they are rolled out/implemented. Who will be held accountable if there are teething problems with this proposal? It cannot be us - the taxpayer - as we will be the victims of any errors.

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2 months ago
George
It seems pretty clear from the feedback that this is not a one-size-fits-all situation, so I don’t see why both can’t exist side by side. Simplicity is really important to me as mine is a small (approx 15 hours per week) business. AIM should not be compulsory – I would like the opportunity for a trial and base final decision on that, ideally with a one-off option to opt out within three tax years if it turns out to not be a good choice for me. I keep my own records manually as they occur & I don’t want to buy software, which would be overkill for me. Prefer the idea of an IRD provided calculator to work out the tax payable.

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2 months ago
Kip
Please keep it as it is. Your new way will create way too much work for a small business owners like me. I don't use software and I don't have the time to do the accounts more often. It takes away time needed to earn a living. Please don't mess up something that already works fine.

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2 months ago
D Allan
Pay as you go without interest and penalties would be great. There would be no penalties if it was based on that periods return and thereby avoiding any penalty if at the end of year reconciliation something was out. Accounting software is used and updates every few days so this would not be any hassle.

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2 months ago
Mark Irwin
I would be very happy to pay Provisional tax throughout the year. We sometimes have financial years that start poorly and then recover. Paying Provisional Tax in those years can really hurt cash flow. If we jump the gun and reduce our initial PT payment we end up with Use of Money interest charges. We use MYOB Online so if it could be set up correctly, making two monthly PT payments would be ideal.

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2 months ago
Dee Gracia
Hi I think for my small business that does have fluctuating income and small outgoings other than a contract person this system would take the calculation out of it. So yes I would be keen if it is not too complicated to work with Cheers thnks Dee

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2 months ago
Graham Woods
I have used a simplified cash book system for over 25 years and it works fine for me and there is no way that I want to be having to use some online system and certainly don't want to be paying provisional tax any more often than I do now. I know many small businesses absolute hate the gst and provisional payments being aligned to supposedly make it easier for them. How can having to pay more money out in the same month make it easier for them. I feel that was a big boggy right from the word go in that I it seems to have been done to make it easier for IRD and not the business person who has to find extra money to make both payments in the same month. Anyone in business (small) whom I have broached the subject with has been in hot denial that it helps them.

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2 months ago
Paul Wilson
We can do this now anyway - it is called the GST ratio method And it works!!! Only negative is that the thresholds need to be changed so businesses with RIT over $150,000 are no longer eligible to use it

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2 months ago
Jon Paske
I don't use accounting software as it would not be useful in my situation so I use spreadsheets to keep track of income and expenditure. I pay GSt every 6 months and do that online with IRD. Every year I send my spreadsheets to my accountant and they work out tax payments. This works and is manageable, as I always put money away into a seperate tax account I don't have problems paying when needed. If the IRD site calculated my Prov & Terminal tax at the same time as my GST then that would be helpful but apart from that in my circumstances any other changes could be more hinderance than help. I have no desire t

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2 months ago
Jonathan Wood
I have no idea what the government is intending, but I have just moved from a paper cashbook to spreadsheet and will most certainly not be moving to any software I have to pay for, or which requires any more work than is currently needed. I sincerely hope that any changes will make life easier for people who operate this way - or who use paper cashbooks. While I can understand a mega-system like IRD wanting to make life easier for themselves and possibly for large businesses I trust that small businesses won't be lumped compulsorily with extra cost and work.

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2 months ago
darryl parsons
One of the hardest things for me to do is try and guess how much income I will be making sometime in the future, which is the way the current provisional system works. Knowing that I can be penalised if I guess incorrectly doesn't help. All my accounts are on Xero so regular book-keeping is not an issue for me and I would much rather I paid my tax the same way I pay my GST - that is, paying exactly what I need to pay on income that I have actually already generated.

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2 months ago
David Kennett
The paying of Provisional Tax as you go (based on actual earnings) is a fantastic idea. My income fluctuates so Provisional based on last year's income can be quite financially crippling. If based on what I'm actually earning would make my life so much easier and fairer. Regards David Kennett Consulting Limited

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2 months ago
Ian Milne
I calculate my gst liability every 6 months. It would be a simple matter to calculate prov tax at the same time. However, I would not welcome having to calculate prov tax at some intermediate point.

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2 months ago
Kathie Shepard
I think paying provisional tax as you go is a much easier way for most small businesses. I have a commission based business and so income can fluctuate severely both from year to year and month to month. Paying as I earn would mean I am not having to pay large provisional tax due to a previous "good" year with an income which doesn't support that payment. Also when I am having a "good" year the provisional tax is paid then rather than IRD waiting possibly 12 - 15 months for it. All in all pay as you go is fairer for everyone. Most businesses have an accounting system or an accountant who prepares GST so the extra effort required for provisional tax should be minimal.

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2 months ago
Max Gardner
I believe the system will work well if IRD can come up with the right percentage so that payment can be made with GST returns. My company was on this system a few years ago and it worked well. If you had a lower turnover for a couple of months then the payment would reflect it as well as a higher turnover would increase payment. There must be no use of money charges involved as the IRD are getting revenue throughout the year. I don't remember the percentage but I think that it was around 6% of the net gst.

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2 months ago
Hayden Searle
Having this would have saved me a hell of a lot of heartache in the past. I think this is a great idea

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2 months ago
Robin Elvery
I can't tell from the brief information that I have seen whether we are talking about company tax or the owner's personal income tax. Many small business owners take drawings throughout the year and rely on their accountant to determine what is personal income and what is company profit. If they have to start paying themselves PAYE it would create additional compliance work doing monthly PAYE returns etc. Need to clarify how this will work.

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2 months ago
Chris Raateland
I would much prefer this system. Pay as you go as with GST with a final wash up at the end of the year, if any.

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2 months ago
Joan Campbell
No, I already keep good records and a monthly spread sheet. Since I do not use accounting software such as Xero keeping my records up to date, as proposed here, would therefore be difficult. It is better and easier for me to stay with the two provisional tax payments that I am currently required to make rather than adopt the new system.

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2 months ago
Clive Mitchell
This new tax system will be of no benefit to our business. As I see, it will incur the same paperwork more times a year. In our position it'll involve more time and effort more often. The end result is that you'll be paying the same amount owed to IRD, but spending more time justifying it. If a business is running efficiently, it should have funds set aside for payment of GST and income tax when it's due to be paid.

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2 months ago
Rob Harris
I work irregularly as an hourly rate contractor. When I get paid I transfer the GST portion into my IRD GST account and 20 percent of the remainder into my IRD personal tax account. I could put it on deposit at the bank and earn a little interest but the peace of mind knowing i'm always in credit at IRD is good. That said, why doesn't IRD pay a nominal 1.5 percent on credit balances, to encourage what I do?

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2 months ago
Marilyn Clare P...
Paying any provisional tax would be a risky business for me during 2016. I am working only 0.5 this year and have had few clients thus far. My bank account is very very low after paying income and provisional tax up until early May. I am 74 and will need to cut back further in 2017. I work only because one cannot live on superannuation and pay rent. Besides I paid tax for 10 years when I should not have been paying!!!! You have that letter on file.

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2 months ago
Joel Cairns
Yes, this is a fantastic idea. Don't stuff about, make it happen!

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2 months ago
Steve Barns
Should be straightforward. In my business its only me so all profits are assessed back to me under the attribution rules, would be easy to make monthly payments.

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2 months ago
Rebecca Ranum
It would suit me to pay provisional tax every two months when I do GST anyway.

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2 months ago
Rob Walters
We pay GST 2 monthly, so the tax component will not be hard to do, as long as the IRD gives us a method to do adjustments at the end of the year.

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2 months ago
glen rutherford
Agree. Will bebe simpler and.fairer

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2 months ago
Brigid Glass
I am an independent consultant and my income does not hit even $1m but I would like to use this system and have the extra certainty around my tax.

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2 months ago
adele geradts
We are an exhibition company who run 4 shows a year our income fluctuates between months and between years - sometimes we have good years and other times bad years. We have overpaid and underpaid provisional taxes in the last 5 years. Its frustrating when we are penalised with this. I like the idea of being able to pay taxes as we Earn the income.

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2 months ago
Andrew Ure
I think this is a great idea and would work well for my situation

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2 months ago
John Craig Stott
my Company Eastside Holdings Limited is effectively my personal banker......our tax accountants Nairn Fisher Ltd receive full Annual Accounts for the company, which only pays one $45,000pa Dividend, no salary....etc..The company remits GST every 2 months. Our General Ledger is constantly trial balanced and updated allwing our GST Returns to be filed on the first day of the new 2 monthly period. Nairn Fisher provisional and terminal tax assessments are paid on due dates, without fail.

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2 months ago
Teresa Morley
No. I use an old MYOB system, we do not want to upgrade as we will be retiring in a couple of years. Just more confusion I can do without. Thank you. Will stick with what we are used to.

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2 months ago
Fiona CAmpbell
Accounts are kept up to date in Xero, no extra work required. Pay as you go tax would be a great alternative to the current regime.

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2 months ago
Leonie Bellamy
Yes, I would prefer more up to date payments. It would work well with Xero and Freshtax.

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2 months ago
Campbell Armstrong
Much better to pay as you go. The GST has to be kept up to date anyway, so it is easy to do it along the way. I like the idea

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2 months ago
Andrew Smith
I like the idea of pay as you go, but don't see why i should use an expensive system such as xero/MYOB - they don't offer me any value Why not stand up a portal connecting to the same APIs? I keep a spreadsheet and send it to my accountant for about $1k a year- I'd much rather pay as I go on invoices At the moment I have to assume I will have a contract all year, if I don't then I aren't earning an income AND I've overpaid my tax (which is near impossible to get back) I don't understand how expenses such as office, computer, software, insurance, accountant will be calculated in this new world - will these expenses become a annual return with a credit against tax paid?

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2 months ago
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