We know that many customers are coming under increasing financial pressure to pay their taxes in full and on time because they have been adversely affected by COVID-19. To keep your business going, you may need to make arrangements with us to pay your tax over time.
Helping you manage new debt due to COVID-19
Depending on your situation, 1 of the following solutions may be right for you.
- An instalment arrangement.
- An instalment arrangement with a later payment start date that we both agree to.
- We write off part of what you owe and you pay the rest as a lump sum or in an instalment arrangement.
- We write off part of what you owe and you pay the rest as a lump sum or in an instalment arrangement. You make a part payment and we write off the rest.
- We write off all the outstanding tax due to serious hardship.
Debt you had before 14 February 2020
You may already have an instalment arrangement with us, but because of COVID-19 things have changed and the payments at the amount you had agreed to are hard to make. We can work together to arrive at a new plan that suits your new situation.
Any of the above options may be right for you and each case will be considered on its own facts. Get in touch with us as soon as you know you'll have trouble paying your current plan.
If you've been putting off contacting us, please get in touch so we can talk about the options for your situation.
Sarah is a provisional taxpayer for 31 March 2020. The 3 due dates for payment are:
- 28 August 2019
- 15 January 2020
- 7 May 2020.
Sarah is on the standard option. She has not paid her provisional tax in full and by the due dates.
On 7 July 2020 Sarah files the return for the 31 March 2020 tax year. We have applied penalties and interest on all the provisional tax due dates. Sarah's business has been affected by COVID-19, so we have applied an indicator to her account.
The COVID-19 relief only applies to bills due after 14 February 2020. The only bill due after this date is the third provisional tax instalment (P3) due 7 May 2020. We can remit only penalties and interest charged to the P3 assessment and only from 7 May 2020. Any penalties and interest we charged before this date remain. Penalty and interest remission for P1 and P2 is only possible under standard remission rules.
If Sarah has residual income tax (RIT) to pay over the provisional tax, she may still have use-of-money-interest (UOMI) up until the due date for her final provisional tax for that amount. Any UOMI calculated after the final RIT due date will be eligible for remission, but not the amount calculated up to the final tax due date.