How financing works
As an Inland Revenue (IR) approved tax pooling intermediary, we work with IR to enable you to finance tax easily, at a low cost.
You pay the interest up front and the provisional tax at a maturity date you select up to 12 months later. The provisional tax is held for you in a Public Trust trust account at IR and is transferred to your IR account at maturity, once the provisional tax is paid. If you no longer need all the tax at the maturity date, there’s no break fee. You only have to pay for what you need. And if you want to repay early or pay by instalment you can do that too.
For additional comfort you can add feeGuard to your transaction. By adding feeGuard you insure your finance fees, meaning that if you don’t require all the tax finance put in place you will get a full refund of the finance fee on the portion you don’t need. This allows taxpayers to enjoy the benefits of locking in the tax at cheaper rates than if they were buying that tax, while having the comfort of knowing they will never pay unnecessary interest if they over-estimate their tax finance.
- Reduce IR interest costs and eliminate late payment penalty charges
- Keep more working capital in your business
- Less expensive than buying tax
- Guaranteed availability of tax credits
- Only pay the principal amount that you need (and if feeGuard has been added to the transaction a full refund of the finance fee on the portion not needed will be provided)
- Pay the amount at maturity or by instalment
- No need for financial disclosure
- No establishment fees or charges
- No security required
- Public Trust holds deposits on your behalf
- IR approved
- Independently audited
What you need to do
- Use our Residual Income Tax (RIT) tool to see how much you can save.
- Create an account and make your finance request through the Tax Traders dashboard. You will receive a confirmation email once the request has been submitted outlining your order details. Once we have received your finance fee, we will arrange with Public Trust and the lender to have the tax paid to IR. This will be set aside in our trust account until you either pay for it or advise us that you no longer need it.