It’s quite common for people to get behind on their tax, and if it’s not addressed quickly then things can spiral out of control with penalties and interest charged by the IRD.
It is more common for self-employed whose income and therefore tax commitments can be unpredictable.
Banks typically do not like providing finance for paying tax arrears, but as mortgage brokers we have non bank options that work well.
We can arrange tax debt loans – they are not difficult loans to brokers that know what they are doing.
Its Time To Draw A Line In The Sand
We can not help you change the past, but we can help you change the future.
Sometimes in life we all need to draw a line in the sand, tidy up any problems from the past and look forward to the future.
Many of the people that we help with tax debt loans are making good money, but they are struggling to catch up the tax arrears as the interest and penalties are too much.
The IRD charges interest from the day after the original due date for the tax owing and the interest does not stop until the outstanding balance is fully paid. The interest rates you are charged are set by government and are based on market rates, so they vary over time but are currently 8.22%, then you may have to pay a late payment penalty if no payment arrangement is entered into or if you fail to stick to an arrangement.
The IRD charge the penalties in stages. This means that the longer a payment remains overdue, the more penalties are. The stages are: 1% the day after the due date, then 4% seven days later and 1% each month the tax to pay remains overdue. It does not take long for these to add up and in the meantime you are expected to keep your current tax obligations up to date.
You can download the IRD guide to tax penalties and interest.
We Can Arrange Tax Debt Loans
If you have tax arrears you will want to get them paid up to date so you can concentrate on making money rather than remained focused on the debt.
As mortgage brokers we know what it is like to be self-employed, we know what it is like to have erratic income and of course we understand the impact that tax debt and dealing with the IRD can have on people. We can work with your accountants and tax agents to ensure that we get your tax obligations back on track, and to ensure that the repayments for your tax debt loans are affordable but also flexible.
For more serious situations where the tax debt has got out of control it might be useful to engage a tax debt negotiator who knows the IRD system and will work on your behalf to negotiate a settlement. One of the best is Gina Jansen.
As specialist mortgage brokers we can arrange tax debt loans to suit you your individual situation.