IRD UOMI rates changed with effect from 8 May 2020

IRD UOMI rates changed with effect from 8 May 2020 as follows:

  • For underpayments of tax - decreased from 8.35% pa to 7.00% pa
  • For overpayments of tax - decreased from 0.81% pa to 0.00%
A Use of Money Credit Interest Rate of 0.00% means that there will no longer be any credit interest paid where any credit is held with Inland Revenue. This includes KiwiSaver contributions paid to Inland Revenue before being passed on to Scheme Providers The rates are reviewed regularly to ensure they are in line with market interest rates. They were more

Interest Free Loan Scheme – a counter view

Thinking of taking up the Government’s interest free loan scheme?  This is a counter view from Tony Alexander, Economist, Bank of New Zealand:

“Last Friday, the Finance Minister announced a new lending scheme to partially bypass the one they had already set up with the banks.

By applying through IRD, businesses with up to 50 employees can get a loan of $10,000 plus $1,800 for each employee for a term out to a maximum of five years. Repayments will not be required before year 3 and the first year will be interest


Govt Press Release: Cash Flow Loan Scheme

An update regarding the Cashflow Loan Scheme.

This is the snippet from the Government press release:

"The Government will provide interest free loans for a year to small businesses impacted by the COVID-19 economic shock to support their immediate cash flow needs and meet fixed costs.

The Minister of Finance and Minister of Revenue say the Small Business Cashflow Loan Scheme will provide assistance of up to $100,000 to firms employing 50 or fewer full-time equivalent employees.

It has become clear that the support that is available to our small and medium businesses