Flexi account – transfer my tax as I pay
Flexi accounts are perfect for the everyday user of TMNZ. We will transfer funds to Inland Revenue in the same month as we receive payment automatically.
Why is transferring funds automatically a good idea?
- Faster representation of funds at IRD.
- Light touch approach.
- Cash management benefits without administrative costs.
A Flexi account used by individuals and trusts or small business owners.
You can always swap to an Advantage account at a later stage if you would like to begin holding funds in the pool.
Advantage account – hold my tax, I want to transfer later
Advantage accounts allow for all the same actions as a Flexi account but with a few extra features to manage more complex tax positions by holding their tax balances in the pool.
When is holding funds within the TMNZ tax pool a good idea?
- If annual tax liability is over 200k or fluctuates.
- To allow for the tax liability to be finalised before transferring tax to IRD.
- To allow excess balances to be sold at a premium interest rate.
- If they are part of a complex group structure.
An Advantage account is used by larger businesses, high net-worth individuals or trusts.
If you want to begin having tax credits transferred automatically, you can switch to a Flexi account at any point.