You might be reading this because you want to learn about refinancing tax debt, and that’s what we specialise in.
There are a lot of self employed Kiwis who get themselves into situations where they owe the IRD money. It’s easy to get yourself into debt with the IRD and especially when income is not steady. This is often the case with people that are new to business or have experienced a change within their business either in the structure, the turnover or have had some debt collection issues.
When you find that you have an IRD debt that you cannot pay, then you need to think about refinancing tax debt into a loan that suits what you and your business can afford.
It makes sense as it is generally a lot cheaper than the interest rates charged by the IRD and certainly it makes a lot of sense to avoid the penalties that they charge.
People can end up having debt with the IRD for a number of reasons and one of the biggest is the accountant has failed to assess the pending tax burden or filed late, so there is a tax bill to pay and not enough money has been put aside.
Sometimes if left the penalties and interest mean the tax debt just continues to grow, and often faster than you can pay it. This is where refinancing tax debt makes more sense and while it’s not always the cheapest option it can still save a lot of stress and money too.
When’s The Best Time To Refinance Tax Debt?
Well, the best idea is to have your accounts up to date and with a good accountant that can let you know well in advance if you might be going to get into a situation where you will have tax debt that you cannot pay.
Unfortunately that is not how things happen for most small business owners – instead without warning you get the shock that you have a large tax debt, or sometimes you half expect it but do not want to deal with it at that time.
So if you have not managed to pay your tax debt on time, then the best time to address this is now – not tomorrow, but today.
