Tax Pooling

Flexible tax solutions to manage cashflow and minimise interest

Tax pooling is a smart way to manage your tax payments, giving you more flexibility and helping reduce unnecessary interest and penalties.
Instead of paying Inland Revenue directly, tax pooling allows you to make payments through an approved intermediary. This gives you the ability to better match your tax obligations with your cashflow while staying fully compliant.

Our Tax Pooling Services

We provide expert advice and support to help you make the most of tax pooling:

Advice on whether tax pooling is right for your situation
Assistance with managing provisional tax payments
Access to tax pooling intermediaries
Help reducing IRD interest and late payment penalties
Support with tax shortfalls or unexpected tax liabilities
Guidance on using tax pooling for GST, PAYE, and other tax obligations
Ongoing support as your business or tax position changes

How Tax Pooling Works

Tax pooling allows taxpayers to pool their provisional tax payments together through an Inland Revenue-approved intermediary.

If you underpay tax, you can purchase tax from the pool to cover the shortfall
If you overpay tax, you may be able to sell the excess and earn interest
Payments are date-stamped, meaning they are treated as paid on time by Inland Revenue

This system helps reduce exposure to use-of-money interest (UOMI) and provides a more flexible way to manage tax obligations.

FAQ's

What is tax pooling in New Zealand?

Tax pooling allows taxpayers to pool provisional tax payments through an intermediary, helping reduce interest and improve flexibility.

Is tax pooling legal in NZ?

Yes, tax pooling is approved by Inland Revenue and operates under New Zealand tax legislation.

Who should use tax pooling?

Businesses with variable income, cashflow constraints, or uncertain tax positions often benefit from tax pooling.

Benefits of Tax Pooling

Using tax pooling services can provide several advantages:

Improved cashflow flexibility
Reduced IRD interest and penalties
Ability to align tax payments with your business cycle
Lower interest costs compared to traditional borrowing
A practical solution for unexpected tax bills or reassessments

Tax pooling is widely used by New Zealand businesses to manage provisional tax more effectively and reduce financial pressure.

Is Tax Pooling Right for You?

Tax pooling can be particularly useful if you:

Have variable or seasonal cashflow
Are unsure about your provisional tax estimates
Have underpaid tax and want to minimise penalties
Want more flexibility in managing your tax obligations

We’ll help you assess whether tax pooling is the right solution and ensure it is implemented correctly.

Helping you on your Business Journey

We have been with Shepherd Hensman since we first started out in business in 2002 and they have been there with advice and support as our business has grown and especially as accounting technology has advanced. Our involvement in the live Beta testing, made possible through Shepherd Hensman, of the new MYOB Account Right software, has made transitioning to the latest technology seamless, and their approachable, friendly team are always on hand if questions arise

Marcelo Nunez & Emma Lowe

Wright Wool is a successful wool brokering business in Waipukurau serving the wider Hawkes Bay. We are passionate about our industry and work very hard to ensure our clients receive the highest standard of service. We also insist that our service providers are of the highest calibre and Shepherd Hensman Ltd fit very easily into this bracket. We have enjoyed a fantastic working relationship since we bought into this business. They have helped us develop our business into what it is today. Their staff are always friendly, polite and respectful. They speak in a language we can all understand and they even have a sense of humour! I would encourage any business to employ the services of SHCA as they will be assured of excellent, reliable and honest advice.

Philippa Wright Limited

I am thrilled to share our experience with Shepherd Hensman, our trusted accounting partner. Their exceptional expertise, coupled with their in-depth understanding of tax intricacies, has been an invaluable asset to me. Their team's professionalism, attention to detail, and dedication to our financial well-being truly set them apart. With Shepherd Hensman by our side, we receive top-notch financial guidance but also found incredible value for my money. I can confidently say that they have exceeded our expectations, making them an essential partner for anyone seeking expert accounting services.