Changes to IRD Use of Money Interest
Important Note: Due to new Inland Revenue Department (IRD) rules, if you make a late Provisional Tax payment then you may be charged Use of Money Interest (UOMI) and will also be charged interest on Terminal Tax amounts not due until 7th of April - read more below to see if this applies to you.
If you are unable to make any Provisional Tax payment on time please contact us as soon as possible as you may be able to finance this through Tax Traders.
If your tax liability for the year is less than $60,000 and you paid all of your Provisional Tax installments based on the standard uplift method and on time, you will not be charged interest if you did not pay enough Provisional Tax and the balance would be due on your Terminal Tax date (for most of you that’s 7th of April).
However, if you paid any of your Provisional Tax installments late, you will pay Use of Money Interest including on amounts due 7th of April.
If your tax liability is over $60,000 and you pay your Provisional Tax on the standard uplift method, you will only be charged interest from the final installment as long as your other payments were paid on time.
So, if you have missed any of your Provisional Tax installments for any reason, please contact us so that we can arrange payment via Tax Traders. The majority of you will have provisional tax payments due on the 28th of August – so keep an eye out in your email for your notices, please contact us if you haven’t receive them by the 6th of August.