Question of the Month: July 2025

Libby O'Toole, Customer Experience Specialist

Which clients will benefit from tax pooling?

Tax pooling is ideal for clients in seasonal industries, navigating big business changes, or simply wanting to optimise cash flow. We can make a big difference when timing and liquidity matter to their business.

If they’re facing unpredictable income or inconsistent cash flow, we can help them manage provisional tax payments more flexibly, while avoiding late payment penalties and reducing their interest cost.

Depositing provisional tax payments into Tax Traders’ tax pool also provides your clients with the added option of using their tax deposits as collateral to secure affordable business funding. Tax deposits can be refunded at any time, without the need to file a return.

Your clients can earn premium interest by selling any surplus deposited tax. This excess tax can be purchased by someone who needs to top up underpaid provisional tax, or other tax types such as GST or PAYE if they’re audited or making a voluntary disclosure, at a much favourable rate compared to Inland Revenue interest.

With 28 August approaching, now's a great time to see which clients would benefit from tax pooling. Feel free to contact our team if you’d like to talk through scenarios.