Prepare to tackle your February dues and blues

Abdul Rafik

The holiday season is over and it is time to start sorting your finances, especially with February 7 tax bill date due date just around the corner.

Each year, February 7 is the date for people to pay their income tax, working for families tax credit, or student loan bills from the previous year.

Inland Revenue Department (IRD) would like to remind its customers that since February 7 falls on a weekend this year, they would have until Monday, February 9 to pay their bill; otherwise, penalties and interest will apply.

Therefore, we encourage everyone to start thinking about their tax bill now.

Constant Contact

If you have a bill to pay, you probably have already heard from us to let you know that the deadline is coming. IRD uses a variety of ways to contact its customers including letters, texts, and phone calls.

An easy and simple way to keep your contact details up-to-date, manage your tax affairs and make payments is by using IRD’s quick and easy ‘myIR Online’ secure online services, which can be found on our website.

Payments can be made using a credit or debit card or by internet banking.

Good Planning

If you are self-employed or earning business income, being organised and planning ahead will help reduce your chances of having a bill to pay,       come this time next year.

The amount of income tax that you would be required to pay is based on your net profit for the year. If you are not required to pay provisional tax, your income tax assessments will always come at the end of the year.

By planning ahead, you can pay the full amount of tax you owe on time.

It is a good idea to use a separate bank account to put money aside to cover the amount that you would be required to pay by February 7.

Overdue Taxes

We can help you but you must contact us as soon as possible to talk through what options are available. Together, we can develop a payment plan and do everything we can to get you back on track.

A payment plan can save you money. You will not be charged any incremental (monthly) penalties if you keep to the terms of the arrangement.

To find out how much you owe, you can find out by logging onto and checking ‘Account Details’ in your ‘myIR Secure Online Services Account.’

If you have a tax agent, you might have more time to pay. Talk to your tax agent if you need to know more. If you have any concerns about overdue tax, please call us on 0800-377771.

The sooner you contact us, the quicker we can help.

Free Workshops

If you are in business, you may like to attend one of our free tax seminars or workshops held in various parts of the country. Please visit our website for details (www.ird.govt.nz).

Abdul Rafik is Inland Revenue’s Community Compliance Officer based in Auckland. He will answer your queries, which may be emailed to venkat@indiannewslink.co.nz

 

You may have a bill to pay on February 7, 2015 if:

  • You have used an incorrect tax code
  • Your income has changed
  • Had an extra pay day during the year
  • Received a lump sum or bonus payment
  • Had a pay increase
  • Worked overtime
  • Reduced your work hours
  • Changed jobs

 

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