AIM – a new way to pay your Provisional Tax
From 1 April 2019, small businesses will have the option to pay provisional tax as they earn, under the new ‘AIM’ or ‘accounting income method’.
Currently, provisional tax is paid upfront, based on your previous year’s taxable income. Paid in advance, in three instalments across the year, this often proves a challenge for small businesses.
Under AIM, filing is in line with your GST cycle dates (whether that is monthly, bimonthly or 6-monthly).
Determining if it’s the right option for you takes a bit of calculation based on some specifics around your previous earnings over different periods. We would love to help you assess if you’re eligible and if AIM would work well for your business.