Filing dates are coming up for small businesses wanting to use the accounting income method (AIM).
AIM is the pay-as-you-go option for managing provisional tax through accounting software. Businesses using this option only pay provisional tax when they make a profit.
You’ll send us a statement of activity on each provisional tax due date through your software.
Here's how you can start using AIM in the current tax year if you have a standard 31 March balance date:
AIM will suit businesses that:
AIM makes managing cash flow simpler because provisional tax payments are based on your business' actual results.
It also means your business can claim immediate refunds for overpaid provisional tax, rather than having to wait until the end of the year.
MYOB, Reckon and Xero are offering AIM in their tax management accounting packages. You’ll find more information on their websites. We expect more software providers will offer AIM-capable software in the future.
Talk to your software provider or tax agent about whether AIM is right for your business.