Managing Tax Debt
Managing your tax is important. If you run into tax debt, you have options, but you need to act straight away.
It’s always important to manage your tax so that – as far as possible – you don’t owe overdue tax and you aren’t incurring penalties and interest because of it. If any of these applies to you, it’s important to act quickly and talk to us:
if the due date is coming up to pay your tax and you think you won’t be able to meet your obligations
if you have a debt owing to Inland Revenue and penalties have started to accrue
if your business has been affected by COVID-19 and this is still affecting your ability to pay your tax
If Inland Revenue hear from you, they may be able to stop penalties on any overdue amounts. For businesses still affected by COVID-19, Inland Revenue have discretion to write-off penalties and interest, but taxpayers need to contact them to tell them the situation and make a plan to manage their tax.
If you owe overdue tax, it may be possible to negotiate a partial write-off. Let us know about your situation as soon as you can.