Salary and Wage Earners

Important Announcement for All NZ Salary and Wage Earners

IRD and the government are in the process of passing a law that will allow them to issue tax bills for all New Zealand Salary and Wage earners. This will come into effect from April the 1st 2019.

That’s the not worst part of the news…………………The first “Red flag” for you is that the tax year starting the 1st April 2018 - 31st March 2019 (current tax year) will be the first year they can action a tax bill for. Which means, all that has happened over the last three months as well as going forward to March next year will affect the outcome and come this time next year there is potential that you may be issued with a tax bill.

The current law as it stands is that if you are a salary or wage earner in NZ, IRD will only issue a tax bill if you request one yourself. They also randomly select some individuals to have their latest year requested and a tax bill issued.

You may be in line for a Tax Bill. Here is how to avoid an unneeded Tax Bill.

We have had many clients with tax bills in the $1000’s completely unaware and under the assumption it was not their responsibility – well now it is……

Don’t worry – we have you covered.

As a valued client of Kiwi Financial Services, we would like to offer you a very special service to reduce or even get rid the chances of a tax bill happening. There are many reasons you may have a tax bill and some complicated.

You may be in line for a tax bill if you have:

  • Kiwisaver
  • Bank Account/s with Interest
  • Resident withholding tax (RWT)
  • A pay rise
  • A new job
  • PIE Income
  • Are on the wrong Tax Code
  • Have more than one job

Any many more……

So, how do you know/stop your chances of getting a Tax Bill?

1 - An annual Personal Tax Health Check

  • We will check you are on the right tax code
  • Find out the reason why you had a tax bill in 2018 and make sure going forward it is corrected.
  • Assess if you have any expenses you can claim (which may result in a tax refund)
  • Assess if you have any exposure to IRD, that you may be unaware of.

2 - Year-round tax support

  • We will check you are on the right tax code
  • Avoid long calls to the IRD and being put on hold – just give us a call or email with your questions.
  • If IRD ask you to provide information (which they are going to start to) you can email us for advice

3 - General look and tidy up of your IRD account

Unfortunately, IRD will now be able to issue you a bill whether you know about it or not. Act now to save yourself and your family time and money.

Don't get caught out with a tax bill when you can least afford it.