Frequently Asked Questions

What happens to my tax payments when I use Taxi?

Your provisional tax payments are held on your behalf by Government-owned Public Trust, in a tax pooling account at Inland Revenue.

How much business funding can I access with Taxi?

You can access as much or as little as you need, up to an amount equal to 90% of the provisional tax payments you have paid through Taxi in the previous 12 months.

Can I skip repayments?

You can skip repayments during the nine-month repayment period without incurring extra costs, so long as you catch up on those skipped repayments during the nine-month repayment period. Of course, if you repay the funds early, Taxi will reward you and provide you with a rebate.

What do businesses use Taxi for?

Our early stage research showed business owners wanted to use Taxi for expansion, purchasing vital machinery, managing delayed payments, and navigating seasonal dips in business. Business owners also told us they love the peace of mind that Taxi provides.

Do I need to tell my accountant I am using Taxi?

If you have an accountant, we think it’s a great idea to let them know you are using Taxi, but there is no requirement to do this.

What happens if my client can’t complete their Taxi repayments within the nine-month repayment period?

If your client can’t complete their Taxi repayments within the nine-month repayment period, provided they have been making their regular provisional tax payments on time and through Taxi, we will, in most cases, be able to extend the repayment period, past nine months. This gives your client additional time to complete their Taxi repayments. Should this happen, there will be ongoing interest costs for your client to pay. Because we only use the most recent provisional tax payments as security, even if your client’s Taxi repayments haven’t been made to us, we can still release their historic tax payments when they are due to be transferred to IR. This means their tax is still paid on time and they avoid late payment penalties and UOMI. We simply take security over their most recent tax payments which aren’t yet due with IR. In the unlikely situation that your client fails to make their Taxi repayments within the repayment period, and they haven't made any further provisional tax payments to IR, Taxi will use the provisional tax payments they have made and given as security, to cover the remaining outstanding Taxi repayments. In this instance, Taxi is not obliged to reinstate your client’s tax position and you will need to contact and settle your tax obligations directly with IR.This is no different to the current situation that exists with Inland Revenue if you fail to pay your provisional tax within 75 days of your terminal tax date via a tax pool.

Can my clients use Taxi if I don't currently work with Tax Traders?

Yes! Taxi is for all businesses that pay provisional tax. However, if your client has balances in the Tax Traders tax pool, they can get started straight away. It’s no problem if they have balances in another tax pool - they can transfer their balances over to Tax Traders so your clients can benefit sooner.

How does using the Taxi facility affect my client's imputation credit balance?

Provided your client’s Taxi repayments are made in full and on time (with such amounts subsequently being transferred to IR), there should be no overall impact to your client’s imputation credit account as a result of accessing funds through Taxi. There are however specific rules around the timing of debits and credits for the funds accessed and repaid. We are here to help, so please contact us for more information if you have a specific scenario you would like to discuss.

Do you have a partner programme?

Yes! We have a growing number of firms who have joined the Taxi Partner Programme. To find out more about how you and your clients can benefit from the Taxi Partner Programme contact us here (https://www.gotaxi.co.nz/become-a-partner).

How do you define and compare your rates?

Your Taxi rate is the interest rate you pay on amounts withdrawn from your Taxi account.This is comparable to the overdraft base rate plus margin that banks charge. We compare Taxi to a business overdraft because similiar to a business overdraft it is a flexible funding facility required to be cleared to zero within nine months, with a fee for availability of funds to borrow. It is secured against business assets (in this case the provisional tax payments), similar to the GSA (General Security Agreement) for standard business borrowing from a bank. GSA lending is generally considered more high risk than residential mortgage lending so any business loan secured with residential property is not comparable to Taxi funding. Rates for banks represent the minimum and maximum overdraft rate (base rate plus lender’s margin) as quoted on the interest.co.nz/borrowing/business-base-rates page at the date listed. [Individual bank rates may be lower than the maximum for some customers]. In addition to the rates referenced here, both banks and Taxi charge a monthly fee for access to their facilities. On the interest.co.nz page above this is referred to as the Management fee. Taxi’s management fee is 0.15% per month on the Taxi facility limit. This is calculated monthly and billed quarterly and is comparable to the management fee of the main four banks.

How do you work out my monthly fee?

Your annual fee is 0.07% of your provisional tax liability. This is then calculated monthly. The minimum we charge is $29.90 per month

Do you do any checks?

When you sign up to Taxi, you will be be taken through our onboarding, this involves connect your MyIR account to Taxi and completing an AML check. When you make a withdrawal we will also check your AML status before we release the money.

What is the maximum term for repayment?

9 months is the maximum repayment term. You can pay your tax back within that time and not incur any early repayment fees and save money on the interest too.

What happens if I can't repay the amount back?

We have put in safety guardrails to ensure that you meet your repayment terms, including a recommended payment schedule. We will work with you to make sure you meet your tax obligation

How much can I withdraw?

You can withdraw a maximum of 90% of the provisional tax you paid into Taxi