Help your clients get on top off 2025 income tax arrears

Written by Tax Traders team | 15 September 2025

What’s the best kind of deadline? One you’ve already met.

As you continue to file tax returns, you’ll be starting to get a solid feel of your clients’ 2025 income tax positions – who’s paid too much or who’s underpaid and now accruing use-of-money interest (UOMI) from Inland Revenue (IR).

For clients who are in the latter camp, Tax Traders offers a more cost-effective solution by allowing your clients to backdate provisional tax payments to the original due date, saving your clients money by eliminating UOMI and any late payment penalties.

And with the filing momentum you’re starting to build, now’s the perfect time to act while the numbers are fresh by getting in early so you can help your clients reduce the cost of their underpaid 2025 income tax liabilities and get ahead.

Why it makes sense

Minimise interest costs: The longer your client waits to pay, the more UOMI they accrue.
Cash flow planning: Clients can avoid a large lump sum payment and can manage their obligations more strategically, especially if they have tight cash flow or seasonal income.
More time to pay: Clients have up to nine months* to settle their 2025 income tax obligations if they need it. Again, this can assist from a cash flow perspective.
Peace of mind: Having an arrangement in place to deal with 2025 income tax arrears can help your clients avoid compliance headaches further down the track.
Demonstrate proactive advice: Recommending Tax Traders shows you're actively looking out for your clients’ financial interests, not just filing their returns.

Quick comparison: Tax Traders vs. Inland Revenue

Feature	Tax Traders	IR
Interest cost	Lower interest cost	Higher UOMI, charged from due date until payment is made
Backdated payments	Yes – payment is treated as if it was paid on the original due date	No – payment date is when funds are received
Penalty avoidance	Yes – late payment penalties are eliminated	No – late payment penalties may apply if tax is underpaid
Payment flexibility	Yes – flexible instalment plans or deferred payment options	Instalment arrangements available, but subject to IR approval

How it works

Tax Traders has tax available in our account at Inland Revenue going back several years. This tax has been paid by different taxpayers at different tax dates and their payments were date stamped at the time they were made.

Once these taxpayers have finalised their tax return and settled their residual income tax, they are able to earn a better interest return by selling any overpaid tax they have to a taxpayer who has underpaid.

Your client would be ‘buying’ this surplus tax and applying it against their own liability.

Your client pays the tax amount, plus our interest cost to Tax Traders.
Tax Traders arranges for the date-stamped tax your client requires to be transferred to their Inland Revenue account.
Inland Revenue treats it as if your client has paid on time once it processes this transfer, removing interest and late payment penalties showing on your client’s account.

Don’t wait. Buy 2025 income tax from Tax Traders early, reduce costs and help your clients get ahead.

*Based on a taxpayer with a 7 April terminal tax date

Disclaimer: The information in this article is Tax Traders’ general view, intended to provide enough information to inform you about this topic generally as at the date of the article, rather than comprehensive information for all situations. This article should not be relied upon to make decisions. Tax Traders recommends you seek professional advice as appropriate for your circumstances. Rates are accurate at time of publication and subject to change.

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