The Accounting Income Method (AIM), the new pay-as-you-go option for managing provisional tax through accounting software, is now available for small businesses with an annual turnover of under $5 million.
With AIM, you pay provisional tax only when your business makes a profit. AIM will suit businesses that are growing, new, have irregular or seasonal income, or find it difficult to forecast their income accurately. AIM makes managing cash flow simpler because provisional tax payments are based on a business’ actual results.
Here’s how you can start using AIM in the current tax year:
· If you have a balance date of 31 March and file GST every month, you will need to pay your first provisional tax instalment by 28 May 2018.
· If you pay GST every two or six months, or if you’re not registered for GST, your first filing deadline for AIM is 28 June 2018.
Software providers MYOB, Reckon and Xero are offering AIM in their tax management accounting packages. MYOB is also providing AIM to their business customers. You’ll find more information on their websites.
Talk to your software provider or tax agent about whether AIM is right for your business. Visit www.ird.govt.nz/aim for more information or take a look at the free webinars on AIM at www.cchlearning.co.nz