Gunson McLean Ltd

How tax pooling can help you meet your provisional tax payments

11 September 2024

Was your provisional tax amount more than you expected this year? Provisional tax is calculated by your previous year’s residual income tax plus 5%. But the provisional tax you’ve paid in the past may not reflect how your business has performed over the current financial year. Plus, if you underpay your tax, this can lead to use of money interest (UOMI) being charged by Inland Revenue (IRD), and UOMI has increased in recent years. 



It can also be challenging for any business to keep a lump sum of cash aside to pay provisional tax on it’s due date, especially if you have cash flow issues or need money on hand. 


If paying provisional tax is challenging for you, tax pooling could be the perfect solution. The way it works is that IRD-approved intermediaries collect payments from many taxpayers and put them into a tax pool account with IRD. They then allocate these payments to the taxpayers’ accounts as needed. Once the pool has made the payment to IRD, it is considered to be ‘tax paid’. If you haven’t paid enough tax to meet your provisional tax liability, you can purchase tax payments made by the pool for lower interest rates than those charged by IRD. You can set it up so you can make payments to the pool to help you with provisional tax in future years. There are pros and cons to this and the pros include: 

  • Flexibility around when you pay provisional tax; you can overpay when you have a bit more money and have some breathing room when things get tight. 
  • Avoiding penalty charges and use of money interest (UOMI) charges for late payments; the pool will always make time-stamped payments for you. 
  • If you haven’t paid enough tax to meet your provisional tax liability, tax pools typically charge lower interest rates for purchasing tax payments than those charged by IRD. 
  • If you’re short on cash, you can dip into your tax pool payments as an emergency line of credit, as long as you top up the money later. 
  • If you do take money out of the pool, you’ll pay a lower rate of interest than banks charge. 


We work closely with Tax Traders so, if you’re finding keeping money aside for provisional tax payments difficult, talk to us today to see if tax pooling is the right fit for you. 

How to prepare for the end of financial year

20 February 2025
The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.

Supporting the Heart of Dargaville and Whangārei Communities

17 February 2025
At Gunson McLean we are more than just a business offering financial expertise we also support our communities in Dargaville and Whangārei. By partnering with various local organisations, we help sustain and strengthen sports, recreation, and community initiatives in the region. Empowering Local Sports Clubs We understand the role sports play in bringing people together, promoting teamwork, and supporting youth development. We are proud to sponsor the Old Boys Marist Rugby & Sports Club, Hikurangi Rugby Football Club Inc, Maungakaramea Hockey Club, Maungakaramea Bowling Club, Mid Western Rugby Squash Club, Kamo Rugby & Squash Club, New Zealand Vikings Rugby Football Club Inc., and the Cobham Cricket Club. Promoting Outdoor Education We also believe that outdoor education is essential for youth development and are proud to work with the charitable trust, Pātaua Outdoor Education & Recreation Trust (POERT). We have been closely involved in the Trust’s activities for the past 8 years – handlings its financial matters – and Craig Gunson is the current Treasurer. Backing Community Halls & Facilities We’re proud to support the Whareora Hall Society and Whareora Cemetery Board as well as local cycling and motorcycling groups Marsden Wheelers Cycling Club Inc., and the Whangārei Motorcycle Club. We are passionate about the causes we support, and the opportunities and growth this enables in our Dargaville and Whangārei communities.

Optimise your business by taking care of your employees

7 February 2025
Most people agree that optimising your business is a good idea and spend hours looking at optimising the supply chain, storage, overheads etc. However, they forget that people are one of the most critical elements in your business. By providing a caring, supportive workplace for employees you also drive the success of your business. Studies show happy workers are productive workers and, as an employer, it’s a no-brainer to provide a workplace where employees feel valued, and where they can flourish. Here are five key ways to build employee relationships, nurture your team, and create a great workplace for your employees: 1. Invest in your employees This doesn’t mean ‘casual Friday’s’ or a pizza night once a month. This is about offering your employees access to training programmes, workshops, conferences, and mentorship programmes. It’s about the professional growth of your employee and how you can enhance their skills and make them feel truly valued as team members. 2. Create a positive work environment Creating a positive work environment is about cultivating a workplace culture that feels positive and supportive of your employees. Be open and transparent with your employees, listen to their feedback and have a strong focus on employee wellbeing. This could include offering flexible working arrangements, benefits such as health insurance, and other perks. 3. Recognise and reward your employees When an employee goes above and beyond, make sure your recognise and reward them. This could by through a performance bonus, employee-of-the-month programmes or even extra time off in lieu. Feeling valued comes partially from feeling rewarded and can be an amazing motivator. 4. Give employees autonomy One of the key ways employees feel trust, is by being given autonomy. Being trusted to come up with their own solutions, processes, and ideas is key to making people feel as if they ‘own’ their role. This helps employees feel fully involved and also brings new ideas, solutions, processes, and efficiencies to the table. 5. Put wellbeing at the heart of your culture Life is stressful. And work-life can be stressful. A well though out wellbeing programme can help your employees manage stress and, in turn, benefits your business. A wellbeing programme is different for each business but some ideas could be checking in with team members, creating a ‘ask for help’ culture, flexible working arrangements including work-from-home days, and offering mental health support. Making sure you’re a caring and supportive employer is vital to your business strategy. With a team who feel valued, nurtured, and encouraged, you’ll all be happier and more productive.
SHOW MORE

To discuss all your account matters please call us on 09 438 1001

Share by: