It can definitely feel that way for provisional taxpayers*, especially in the second year of business.
If 2021 is the first year you’re operating (year ended 31 March 2021), you’ve gone a whole year not paying any tax. Suddenly you have to pay for 2021 and prepay 2022 – all within ten months.
Below is an example of the timing of provisional tax and terminal tax payments. Note that for the year ended 31 March 2023 (yellow), too much tax has been paid. A refund is therefore due when your tax return is filed.
At Beany, we’re always looking ahead to make sure there are no ugly surprises at each tax payment.
- We send out reminders a few weeks before each due date
- Tax-iQ also provides you information about the tax year, the due date, and the amount
- You can even set up personalised reminders!
As always, we’re here to help. Get in touch with your accountant and/or our Support team if you have any questions.
* You become a provisional tax payer when your Residual Income Tax (RIT) exceeds $5,000. RIT is the amount of tax you pay for the year, less PAYE and other tax credits to which you may be entitled.