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Forums › Finance and wealth management › Provisional Tax "Period Ended" Date?
MurrayM

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#113155 8-Jan-2013 12:37
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Being self-employed I pay provisional tax to the IRD.  I like to pay this through my bank's (ASB) website.  But every time I go to make this payment they ask for "Tax period ended: 31 March" and offer a drop-down list of years (2011, 2012, 2013, etc).  I always get confused as to which year to choose.

My tax year goes from 1st April to 31st March and I make three provisional ax payments per year.  The next is due on 15th January.

How do I figure out which year to choose from the drop-down list?  The reminder letter I get from the IRD doesn't really say (unless I'm just not understanding it correctly).

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surfisup1000
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  #742731 10-Jan-2013 12:04
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melissa65: Dependant upon whether or not you under/over paid your prov tax, you may also have some terminal tax which will be due around April/May (unless of course you are registered with an accountant, and have an extension of time...). Anyway, select FY13 for this also, and then after that, all prov tax payments should pertain to the FY14 year.


This is also incorrect ( I believe). Terminal tax is not due until feb the next year. 

ie, for 2013 tax year , 1/3 prov in Aug 2012, 1/3 prov in Jan 2013, 1/3 prov in May 2013.  Then, you file your ir3 before july 7th which shows the terminal tax position. If you owe tax, you have until feb 2014 to pay this. 

A word of advice-- make sure you always slightly overpay your tax by the final prov payment (you can work it out roughly on paper if you have good records which you should).   This way, you are guaranteed not to incur use of money interest penalties. 

If you do owe terminal, pay it right away to avoid compounding UOMI interest charges. They may or may not charge UOMI fees, but, better not to take the risk . My accountant even got it wrong when I had one. 

I used the IRD standard provisional option (previous years income + 5%)  under which you are not supposed to pay UOMI -- however, they whacked me with these UOMI fees anyway -- when I complained, they just said that their website was wrong and that if you know your income is going to be higher than 5% extra you have to make voluntary payments. This was completely opposite to the information on their website.

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