Four ways to pay
You can now manage provisional tax in four ways:
- The traditional standard uplift, where three payments are made each year based on your tax bill in the year previous plus 5%.
- The GST ratio method, where provisional tax is calculated based on your GST supplies and is all paid along with your GST.
- The estimate method, based on an estimate of likely earnings for the year.
- AIM, the Inland Revenue’s new way to pay.