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Deanne Maule
As we calculate monthly profit I don't believe this involve a great deal of extra work and it would help remove the uncertainty around estimating full year income-providing the tax is based on that months profit

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2 months ago
Anneliese Allen
This seems a much fairer way of paying tax, particularly for companies where their income fluctuates throughout the year. Our accounting systems are always up to date so there won't be any extra work required.

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2 months ago
Anna Schimmel
It would be much better for a small business to pay tax as you earn. We'd be able to keep approximate track, but there needs to be the chance to tidy up the records / earnings after the F year has ended, as it would cost too much to keep checking with the accountant throughout the year

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2 months ago
Wayne Dimock
Pay as you go the best idea for a long time, we already have to do the GST so doing the tax at the same time is no extra work and means we don't have looming tax bills and we can pay ahead of the game. This is the best idea I have seen in my 30 years + of business. As long as we are paying as we go not a year ahead, who can predict what's going to happen with our business next year. The environment we are working in is unpredictable and is affected by our economy which is now days effected by international events. I see to many young guys starting up getting caught out with provisional tax bills they hadn't facted into there financial planning. Even with the warnings it will be there to pay. BUT make it simple guys we are all busy and don't need complex compliance issues. Good idea hope it can come together

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2 months ago
Kay Hyland
Hi Wayne. Do you do GST on the payments basis? i.e. cash transactions only? If so that is not the same as the AIM method which would require you to deal with accruals, debtors, creditors, depreciation, interest expense apportionment, non-deductible entertainment, GST adjustments and all the other year end adjustments each time to calculate your tax payment.

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2 months ago
Graeme Owen
My business income is fairly evenly spread over the year, so predicting provisional tax from Xero is likely to be fairly accurate

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2 months ago
Terry
I am happy with the current standard option. I don't use a software provider so this will create extra cost and extra time having to provide this information more regular. I would be happy if you leave it alone! Just saying.

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2 months ago
Michelle Lange
My thoughts EXACTLY!!

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1 month ago
Jonathan Beaver
I think that this is not only a good idea (perhaps as an extra option, rather than a requirement) for small businesses, but it would also be a great option for salaried earners who are paying additional provisional income tax currently. I'm in a situation where a significant portion of my income comes from share sales, which cause significant fluctuation in the amount of tax I have to pay each year. The side effect of this is that I need to keep careful track of my tax burden vs additional income to make sure that I have cash on hand to meet any additional tax payments at the end of the year, or account for overpayment throughout the year if my income has lowered. These payment events occur several times a year such that it would be a relatively straightforward process to track and pay the additional income tax as it is earned, rather than the current (relatively inaccurate) method of extrapolating from the previous year.

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2 months ago
Iain Fenwick
I have to keep xero up to date anyway to GST, so calculating aim on a ongoing basis is not a problem. The hardest part is always finding the money to pay the tax. I often make very large purchases which take several months to get paid for, at the moment I put money aside when I have the cash flow for the provisional payments. If I have a few months to pay or can postpone the payment. If xero has a funtion for aim like the gst where I can run the gst/aim report every week so I can see how much I owe and can budget for this it would be helpful. Even beter would be a item on the dashboard that tells me how much money I owe the IRD at any one time, it really helps budgeting and cash flow. And yes I do run the gst report on a regular basis, usually every few days around the 20th.

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2 months ago
Alan Roberts
I believe it is a good idea and will not ad additional complications.

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2 months ago
Angus Brodie
Hi, I am a provisional tax payer with significant investment income that does not have withholding tax deducted. I am not large enough to warrant paying an accountant or tax adviser and prepare my own tax returns. I find the current system very satisfactory as I need only address my tax position once a year by electing to pay provisional tax using the "standard" calculation. I recognise that many small business owners will welcome being able to adjust their provisional tax payments through the year in response to their business performance but my situation is different. I would prefer to address my tax position only once a year. My preference is that whatever changes are made that the option to pay provisional tax using the current "standard" calculation be retained. Kind regards, Angus Brodie

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2 months ago
Brendan Meffan
I would very much like to change the way I pay my tax to something like this. I own a small business and it would help considerably with my budgeting over the year.

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2 months ago
Duncan Cairncross
Sounds like a useful extra option - BUT it's on no use to me at all and I would not like to HAVE to use this system I pay my provisional taxes using the current system and it works fine

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2 months ago
Tony MacLeod
I agree. I can see benefits for some, but certainly no advantage to me. Current system works fine.

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2 months ago
Chris Davidson
Agree with the comments of Wayne Dimock

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2 months ago
Helen Gilbert
Some years my revenue is very lumpy, which makes estimating prov tax a nighmare. Pay as you go would suit me much better.

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2 months ago
David Christie
An excellent option, especially if timed to coincide with the payment of PAYE, i.e. 20th of the month.

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2 months ago
Julie Roulston
Am stoked that this is to be introduced. Much better for me.

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2 months ago
Alan Roberts
I believe it is a good idea and will not ad additional complications.

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2 months ago
JJ Borren
Your proposal is no good to us . We will want to continue to only pay Prov Tax 3x times per year , as we do now .

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2 months ago
Adrian
I think it's about time. It will be far easier to manage my tax as I go on a paye basis. Do it!

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2 months ago
Chantal Shaw
I think this is an excellent idea.

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2 months ago
Stephen Fleming
As long as it is optional. Ie taxpayers can continue to use the 3 provisional tax payments annually as used now. Some clients are being told they must pay their provisional tax with their GST payments, which upsets the present system that works well now.

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2 months ago
Carla
I'd love to pay may tax as I go, rather than Provisionally. I have just completed my first year and a half of self-employment and have paid "the big one". Due to Student Loan and GST payments also being due around the same time, my payments were more than half of what I'd earned last year! Luckily I'd been saving as I earned. However, I use Xero regularly for my accounting software, and could therefore pay tax regularly and accurately without any hassle to me. Please change it!

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2 months ago
Jo Kinley
I don't think this will work for me - I do use accounting software for both invoicing and end of year accounts - but whilst I do the invoicing part monthly I only do my GST 6 monthly and all my end of year expenses eg interest, depreciation etc once a year. So not sure how that will work with AIM - also I don't use Xero or MYOB so I'm guessing you need to use software that talks to IRD? It all feels like more work to me....

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2 months ago
Peter McTaggart
I totally support paying provisional tax as you go. Better for both parties as the IRD as a collection agency should collect more. The current method is annoying as our busiest months are the last 3 months of the fiscal year but to avoid interest charges I have to guesstimate what we will take in sales and provide and pay accordingly.

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2 months ago
Brendan Meffan
I would very much like to change the way I pay my tax to something like this. I own a small business and it would help considerably with my budgeting over the year.

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2 months ago
Andrew Jefferies
I have a small one-man-band consulting business. My business turnover fluctuates considerably from year to year. I earned around $180,000 one year, then $90,000 the next. My main problem with the provisional tax system is that past taxable income is used to project future taxable income. When my income falls in one year, I pay a large amount of provisional tax for that year. While I know I will get that back at the end of the year, I still need to manage things to ensure I've got enough cash/credit to continue paying my bills. I need to go to my bank manager and get an extension on my available credit which is quite time consuming. The AIM approach looks like it would work brilliantly for me. I enter my transactions into accounting software (Xero) almost instantly. It seems like it wouldn't be too hard to arrange to pay broadly the right amount of tax using that information in my accounting system. Great initiative!

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2 months ago
John Mote
Our issue would be how disconnected our income and expenditure is though the year. We get income when our spend is lower and spend when our income is close to zero. So the proposal would see us being well overtaxed for a few months, potentially leaving us short of funds at the time of the year when our spend in high. In our business there is also the risk of quite large changes in income between years with the current system allowing is to better balance this. I can see how the proposal would be a great idea and work for some folk, but it would not work for us and I would not want it to become mandatory.

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2 months ago
Ingrid Geldof
Yes I beleive this would help with my cash flow in making consistant contrabutions. Not having big hits every 4 months. I am a small business under 5 million turnover though.

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2 months ago
David Cramp
I receive an income from overseas that I have to pay provisional tax on. I know exactly what is coming in each month bar a dollar or two and would much prefer to pay tax each month on that monthly income.

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2 months ago
Katy Beasley
Love AIM. Should've been thought of long ago...Small country, lots of small businesses: all help for keeping them healthy can only benefit all NZ

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2 months ago
ATESH NARAYAN
I think that it will be better for taxpayers to split their provisional tax payers throughout the year. This will mean not having to pay a lump sum towards the end of the financial year.

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2 months ago
Ian Stewart
I currently work out my income tax monthly and send it to the IRD. This keeps me ahead of provisional tax and is easy to do, so makes much more sense to me. Also, this year I'm expecting a sharp drop in income, so the provisional tax is way higher than the income I expect this year. Working out monthly tax payments based on my earnings means I pay the correct amount without stressing the budget to meet a higher than needed provisional tax.

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2 months ago
Bindy Bonnette
I would welcome being able to make a single effort around tax payments synced or together with my GST returns. My accountancy fees would also come into it, so if this was as straight forward and as simple as doing a gst return or the same form/effort it should be no problem. As my business income fluctuates greatly over a calender year and even year to year, I would be keen on some kind of 'as earned' rather than the current provisional arrangement.

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2 months ago
Kennedy Faimanifo
Definitely yes. Like you would with your own personal PAYE I would like to be able to remove the problem I have which is dipping into my TAX and being in dept. Instead to pay it all out as the money comes in would be more ideal and safer for me personally

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2 months ago
Gerard Tilleyshort
We already make voluntary payments with our bi-monthly GST returns, this suits our cashflow better and is not difficult to do.

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2 months ago
Graham Beard
Because I cannot predict my earnings I am happy to pay the 2 prov tax instalments calculated by IRD. The final instalment I adjust ahead of time when I know what my earnings will be for the year.

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2 months ago
Karen Hamilton
Yes - I think paying provisional tax throughout the year would work well for our business

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2 months ago
Heather Carr
Sounds good to me. Because of GST my accounts are pretty much always up to date. Using a scheme similar to PAYE makes sense as I earn an off farm wage and pay PAYE. Tring to find money to pay provisional tax can be a challenge as my income fluctuates during the year

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2 months ago
Geoff Merryweather
Yes, PAYE for provisional or income tax will help ease concerns of over or underpayment of tax, or having enough moeny put asside to meet the payment. Making the payment dates alternate with GST would help, so it smooths out the cashflow If it relies on an online service such as Xero, it it will limit it's usefulness to small traders such as builders, who are the ones who need it most. Having the option to manually enter the figures online, similar to the GST return would get around this. This option might have a lower turnover threshold if IRD are worried about people fudging figures during the year.

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2 months ago
David Baird
I take the income from my company as a payment as director. My company makes no profit each year as this is taken out as income. This year my company may make 20% less than last year (I lost a large customer), but my RWT is +105% of last years which will make my first two payments hard to make. Being able to decrease RWT based on actual income would be helpful if I could apply this to my personal income. I do GST every two months so know the state of my companies income on a regular basis.

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2 months ago
Anna Schimmel
It would be much better for a small business to pay tax as you earn. We'd be able to keep approximate track, but there needs to be the chance to tidy up the records / earnings after the F year has ended, as it would cost too much to keep checking with the accountant throughout the year

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2 months ago
Felicity Beadle
Would be prepared to review a proposal for 'pay as you earn' style Prov Tax so long as there are no added compliance costs. Especially no added costs having to use Accountants, as their fees are such a kicker already for SME's. We run our small business on Xero. So this is a sunk cost already. Given so many business owners are using Xero or MYOB, anything IRD considers implementing should work so that the owner (not an Accountant!) would be able to use the figures from this software to file and pay regular Prov Tax. Has to be easy to do and not time-consuming for business owner. If there is any need to get costly Accountants involved..... forget it.

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2 months ago
Kady
Yes I think this new tax scheme is great and it's the way forward. I would rather pay a small tax sum similar to being a employee so this is paid to the ird directly instead of trying to put it aside . In a small business it's hard to put money aside for GST and tax when work fluctuates or the money is need for other situations in the business . I can see why a lot of small business don't stay a float or grow . We are creating jobs and haveing the stress of big tax bills stops or hinders growth . Especially when your trying to do it with out bank loans . Small business need more help to create less money stress and to help them grow !

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2 months ago
Graham Olsen
Most definitely. As an processor and exporter dealing in the wildly fluctuating Chinese market we are often heavily penalised when we do better than budgeted.

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2 months ago
Neil Percival
I look forward to this change. I would far rather put in an estimate of tax monthly rather than as at present. There is little extra work with modern accounting packages.

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2 months ago
Christine Smith
Paying regular provisional tax payments based on the current year's income is a better way to go. It will also help business cash flow.

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2 months ago
Allan Blithe
If it isn't broken don't try and fix it. My take on this is IRD are more interested in a more steady and continuous income stream rather than having it very peaky with 3 times a year provisional tax payments being made. Im a very small business and don't use any software or programes keep manual records and this would just make extra work. Not interested at all. If people want to do this way, it should be optional not inforced on everyone. Some of us keep accurate manual records and once we do the end of year and tax return we are close to spot on. Sorry no benefit to me at all.

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2 months ago
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