If you started a new business during the year, either self-employed or in a partnership, you may be able to get an early payment discount by making voluntary payments.
Early payment discount
You may be able to get an early payment discount of 6.7% if you:
- are self employed or a partner in a partnership
- have started a new business
- get most of your income from the business
- make a voluntary income tax payment before the end of the income year
- elect to receive the discount before the income year’s tax return is due
- do not have to pay provisional tax in the income year, or in the past 4 years
- have not received an early payment discount, any self employed income, or any partnership income in the past 4 years.
The discount can quickly add up:
- Danny owes $5,000 income tax. The discount saves him $335.
- Miriama owes $20,000 income tax. The discount saves her $1,340.
For more tips on saving your business expense, contact one of our tax advisory team by emailing firstname.lastname@example.org or simply call 09 281 8885 to discuss your situation today!