- Make a sensible, manageable arrangement with IRD, one you should be able to maintain. This will stop penalties accumulating
- Buy someone else's overpaid tax and so reduce penalties and interest charges
- Budget your personal expenses to provide funds to catch up
- If you're in deep trouble, persuade IRD you are a suitable candidate to have some of the tax written off.
If you ignore the problem:
- Penalties compound while you sleep
- High interest charges do the same
- You get further and further behind.
Getting behind with your tax is a recipe for a disaster. Don't let this happen. It's usually very light in your first year of business.Then there's a catch-up. You might suddenly be horrified by the amount of tax you have to pay. Plan for this.