Provisional tax is due on August 28, 2022.
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Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year. You'll have to pay provisional tax if you had to pay more than $5,000 tax at the end of the year from your last return.

It's payable the following year after your tax return. For example, if your residual income tax from your 2022 return is more than $5,000, then you'll need to pay provisional tax during the 2023 tax year.

Provisional taxpayers often earn:

• self-employed income- extra income like Uber income and side hustle income
• rental income
• income earned as a contractor
• income from a partnership
• overseas income.

There are some situations where you may need to pay provisional tax on your reportable income.

Reportable income is income information that Inland Revenue receives regularly from a third party (e.g. an employer, a bank, etc) for an individual and a tax year.

This includes:

• PAYE income payments
• income payments
• ACC attendant care payments
• Prescribed Investment Entity (PIE) income
• Employee share scheme income with tax withheld
• NZ resident interest/dividends
• Non-Resident interest/dividends/royalties
• Taxable Maori Authority distributions

These can be due to:

• incorrect use of tax code or rate for PAYE, interest, or dividends
• lump sum payments that did not have tax deducted, or not enough tax deducted
• employee share scheme income that did not have tax deducted
• property sales subject to the bright-line property rule.

Please budget for your August 28, 2022 Provisional tax.

In order to calculate an accurate charge out rate there are many factors you need to take into account. From your target income to the amount of hours you can manage ANZ has all the tips and tricks. 

Calculating the breakeven point is a key financial analysis tool used by business owners.

Once you know the fixed and variable costs for the product your business produces or a good approximation of them, you can use that information to calculate your company's breakeven point. Small business owners can use the calculation to determine how many product units they need to sell at a given price point to break even.

The Breakeven Point

A company's breakeven point is the point at which its sales exactly cover its expenses. To compute a company's breakeven point in sales volume, you need to know the values of three variables:

• Fixed costs: Costs that are independent of sales volume, such as rent, salary of your employees
• Variable costs: Costs that are dependent on sales volume, such as the cost of manufacturing the product
• Selling price of the product

How to Calculate Breakeven Point

In order to calculate your company's breakeven point, use the following formula:

Fixed Costs ÷ (Price - Variable Costs) = Breakeven Point in Units

In other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note that in this formula, fixed costs are stated as a total of all overhead for the firm, whereas Price and Variable Costs are stated as per unit costs—​​the price for each product unit sold.

The denominator of the equation, price minus variable costs, is called the contribution margin. After unit variable costs are deducted from the price, whatever is left—​​​the contribution margin—​is available to pay the company's fixed costs.