How to deposit into the Tax Traders pool
The benefits of tax pooling extend well beyond saving on interest costs. By making all your provisional payments through a tax pool, you retain a level of control over how your tax payments are managed that is not available by paying your Inland Revenue (IR) account directly. By having your funds in a pool, you have ultimate flexibility to speed up, slow down, or refund your tax payments.
How does it work?
Calculating how much provisional tax your client will need to pay can be difficult. Unlike payments made directly to IR, payments to Tax Traders IR-approved tax pool can be topped up or reduced after the fact as if they were paid on time. Tax pool users do this at significantly lower cost than dealing directly with IR and without incurring late payment penalties.
Deposits can be transferred to IR on the lesser-of uplift or a third of actual Residual Income Tax (RIT), when the return is completed. If your client has deposited uplift into the pool and you find that one third of actual RIT is lower than uplift, you can sell or swap the overpayment, earning premium interest through Tax Traders.
If your client has paid the right amount into the tax pool at the right dates, the tax deposits can be quickly and easily transferred through to their IR account at no cost. However, if their tax has been over or underestimated, the benefits of depositing into the pool can be considerable.
In fact, there is no downside by paying income tax through our tax pool. There is no cost to set up an account. Pay on the day and we’ll take care of the rest automatically. You get an online account that allows you to see and manage the tax balances 24 hours a day, seven days a week.
Have deposits with another tax pool?
It’s easy to transfer a deposit to Tax Traders’ tax pool, within 48 hours, retaining all historical data. Our team is here to help.
- Online account to manage tax balances any time.
- Pay tax in custom instalments across the financial year.
- Receive premium interest on surplus tax.
- Fast refunds when you want them, even during the tax year.
- Avoid late payment penalties and reduce interest costs on underpaid tax.
- No minimum deposit amount.
- Pay up until 7pm on provisional tax payment date.
- Payments lodged automatically with IR.
- No need for same-day cleared payments.
- No account fees or setup costs.
- Associated entities included in single account.
- Any changes to payments must be completed and transferred to IR within 75 days of your client’s terminal tax date.
- Income tax is the only tax type which can be purchased for an initial assessment. The deposit process is designed for income tax. In emergencies, funds paid to a tax pool can be applied to other tax types subject to certain criteria. If you would like to find out more about this, please contact our team.
Greater protection with Tax Traders
- IR approved
- All payments and transactions held and approved by Public Trust
- Independently audited
- Money back guarantee if IR declines your request