With the advent of Use of Money Interest (UOMI), the IRD has passed the responsibility of tax planning back onto you, the taxpayer. This means the traditional process of paying provisional tax based on the previous year’s profits is no longer a safe one.
If you’re not sure exactly what that means for your business, or you want a professional opinion on how you approach UOMI, we’re more than happy to help.
As a general rule of thumb, the larger your business activity, the more exposed you will be to potential UOMI charges. This can be an expensive alternative to bank funding for many clients, but there are ways to mitigate your exposure.
Your taxation accountant can help manage your tax affairs to minimise any UOMI charges and make sure you take advantage of any tax concessions available to you.
