Uplift is able to be used to determine the amount of tax due at each provisional tax date.
Depending on when you file a taxpayer’s return, the calculation for standard uplift can be based on either:
- Their RIT for the previous year uplifted by 105%
- Their RIT from two years prior uplifted by 110%.
Determining the best application of uplift for a taxpayer and their cashflow can be tricky.
Our Uplift Scenarios tool provides a great overview as to the impact of uplift on their provisional tax payments and offers an option for you to present to your client to prepare them for upcoming payments.
Through your Manage Tax menu select the Uplift Scenarios tool.
Select the tax year to be estimated, the terminal tax date for the taxpayer and enter the estimated RIT, as well as the RIT for the two prior years.
When you hit calculate a scenario analysis will be provided based on filing prior to P1, between P1 and P2, and filing after P2.
