Need to calculate the final tax payment required for the year for one (or multiple!) taxpayers? Calculate what tax is required and when and select the desired payment options for your client’s RIT in a few easy clicks.
What does the RIT tool do?
By using our RIT tool, you can optimise your client’s tax position for a given income year in minutes. Our tool combines IR and Tax Traders data to figure out how much tax your client needs at each date, generate transfers, and provide flexible payment options to settle any shortfalls.
How does it work?
Enter your draft RIT or specific IR assessments into our RIT tool, along with any payments made or credits in the client’s IR account for the relevant income year.
The tool considers any transfers from the Tax Traders tax pool from completed tax purchases, as well as any incomplete purchases on invoice (with the option to exclude these from the final calculation). Note: IR data is pre-populated when using our IR data connection.
Our RIT tool will also recognise any deposits in the pool, allowing you to select which of your client’s deposits are utilised. If there are deposit surpluses, you can determine how you would like these applied for your client.
The tool will specify the tax amount required at each provisional tax date and funds will be allocated accordingly.(with the option to exclude these from the final calculation). If you’d not like to use certain purchases or only use selected deposits, you can edit the calculation. If there are shortfalls, the necessary tax purchases will be automatically calculated and lodged.
Once completed, your client’s provisional tax requirements with IR for the income year will have been met. No other tax pool has a tool this advanced or comprehensive, and we're excited for you to start using it and seeing the difference yourself.
To access the tool on your client dashboard, select Manage Tax > RIT - and follow the prompts. See screenshots below for assistance.
Can I use the RIT tool for groups of taxpayers?
Yes! We’ve updated the tool to allow you to determine obligations and make the most of your tax pool positions across associated taxpayers.
For agents working with groups of associated taxpayers, this new feature will save incredible amounts of time.
The basics of the tool remain the same, however, you will notice that there’s now an Add Another Entity option within the workflow. The tool will automatically pull up all associated taxpayers within a group for you to choose from. There are also group summaries for each taxpayer. You can now easily calculate all the swaps and transfers you will need to make and action them in just a few clicks.
Group criteria:
- The funds must all sit within one member of the group, in order to be utilised amongst associated group members.
- Members of the group must all have the same provisional tax instalment dates and balance date.
Benefits
- Ensures amounts transferred to IR are the correct amount and at the correct date – we stand behind our calculators.
- Prevents debit Use of Money Interest (UOMI) charges and late payment penalties being applied.
- Complete swaps automatically online – quickly, efficiently, and accurately.
- All debit and credit UOMI is set off, leaving your client with a single easy payment if a purchase is required.
- Choose from one of four payment options: single payment, interest upfront, instalment or pay-as-you-go (flexible).
- Easily calculate RIT for groups of associated taxpayers and be provided with a single amount to settle the tax liabilities of all members of the group.
Criteria
- When swapping a deposit, you are selling the surplus deposit tax credits and purchasing tax credits at the correct date. The swapped funds become purchased funds as a result and can only be used to satisfy income tax obligations for current periods.
- Purchased tax credits must be completed and transferred to IR within 75 days of your client’s terminal tax date.
See Also:
