Tightening up the rules for payment to IRD
How many of you have paid your PAYE or GST by sending the cheque on the day? Post marked payments on the day were deemed to be paid on time. This practice has been used by many when managing cash flow demands around the 20th or 28th of the month. However, the opportunity for a bit of breathing space has now been removed.
TAKE NOTE
As from 1 October 2014 payments must be received by the IRD on or before the due date. Westpac will only be accepting cash or eftpos payments, cheques must be sent directly to IRD which means sending them at least 2 weeks before the due date to ensure they get there on time.
There are other options of course, internet/electronic paymentmethods are available from your banks. But the short point is that your cash flow management must now start earlier if you are one of those that relied on the delay that snail mail provided.
If you would like some assistance in managing your cash flow to ensure IRD compliance is met and to avoid late payment penalties, we are here to help so please give us a call on 03 578 3386 or send us an email at askme@tva.co.nz
Related blog Upcoming changes at IRD