Tax arrears- Covid-19 0 Comments News By admin

Covid-19 has had a huge effect on small and medium sized businesses have struggled to pay their taxes on time.

Every day we are reading of lay-offs and businesses going into liquidation and this is expected to continue for some time.

If you are a small or medium sized business, you have probably experienced a downturn since Covid-19 hit.

The pressure that businesses are under has meant that it has been hard to keep up with tax obligations to the IRD.

There are a number of ways that you can get on top of your tax obligations to ensure that your business can survive the economic difficulties that we’re facing.

Opening a savings account to put money towards your GST or PAYE taxes is one way of ensuring that you meet your tax obligations and do not incur a debt to the IRD.

Creating a payroll intermediary where all PAYE taxes are paid when employees are paid is another way of keeping up with your taxes. This is easy to manage and does not come at much of a cost.

If you are unable to pay your taxes to the IRD, we can negotiate an arrangement to pay off any money owed over time so that your business does not become insolvent due to pressure from the IRD.

There is special rules in relation to tax debt and Covid-19 which may be suitable to you with much more flexibility.

Penalties and interest are added on a daily basis so it is important to act quickly. Once we enter into a negotiation, the penalties are suspended.

We have a great relationship with IRD and have assisted hundreds of clients reach payment arrangements with the IRD that have helped ease the pressure of tax debt and meant that their businesses have been able to survive tough times.

Although we’re going through hard economic times, planning ahead and being organised will help you get on top of your tax obligations and avoid the pitfalls of falling behind.