How to calculate your Income tax and Provisional tax

Al lot of our clients are unsure how to make provision for income tax payable and sometimes they estimate or guess a certain percentage and then put that percentage of income aside in a separate bank account to make provision for future income tax payable.

If you are using Xero, then guessing a percentage is not the best way to estimate your income tax payable. With this video,

I will show you how to calculate your income tax payable at any stage during the year with quite a high level of accuracy.

An obvious prerequisite for the method explained in this video is that you must use Xero as a bookkeeping platform.

Link to the IRD Tax on Annual Income calculator:

Link to the calculation Spreadsheet:!AqpEEv_Q3cKigsUMlJ01n8vyuFJH-Q?e=868py9


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