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.

Tax Issues?

For more tips on saving your business expense, contact one of our tax advisory team by emailing bas@ursacorp.co.nz or simply call 09 281 8885 to discuss your situation today!