Provisional tax confuses a lot of self-employed agents, but the idea is simple: instead of one big bill at year end, you pay your income tax in instalments through the year.
How it works
Once your tax to pay passes a threshold in a year, Inland Revenue expects you to pay the next year in instalments — usually three. Each instalment is an estimate toward your eventual bill.
Why agents feel it
Because commission is variable, a big year pushes your provisional payments up — and they can land in a slower season. Planning for the dates is everything.
- Know your instalment dates in advance
- Keep the cash set aside so dates are non-events
- Re-estimate if your year is tracking very differently
Realty AI tracks your provisional dates and tells you what to pay and when — no letters that catch you out.