From 1 April businesses with turnover of less than $5 mill can use the new AIM method of calculating and submitting Provisional Tax. It is useful if:
- Your business is growing
- You are new to business
- You have irregular or seasonal income
You must use approved accounting software to use this method. This includes MYOB, Xero and Reckon. Note that Xero users must have Xero Tax Practice Manager, so you will only be able to use this if your accountant or bookkeeper submit your GST for you and are Xero users.
Provisional Tax payments will align with your GST payments. Any refunds during the year will be automatically paid to you if you make a loss. You will not be charged any use of money interest through the year. Final year company tax will be calculated as it is now.
For more information, see the IRD update, or contact your accountant or bookkeeper.