Tax return due dates depend on a range of factors.
If you are signed up with a tax agent, the IRD grants you what is known as an Extension of Time (EOT). This means you can file your income tax returns up to 31 March after the last financial year.
For example: the income tax return for the period ended 31 March 2023 can be filed up to 31 March 2024.
If the IRD has not granted you an EOT, the due date for income tax returns is the 7 July after the balance date.
For example: the income tax return for the period ended 31 March 2023 can be filed up to 7 July 2023.
You may not be granted an EOT if you don’t have a tax agent or filed previous income tax returns late.
Terminal tax is the final tax you need to pay for the year less any prepayments made. If you have a tax agent or accountant and have retained your extension of time (EOT), you need to pay terminal tax by the 7 April. If you do not have a tax agent or accountant or have lost your EOT, you need to pay your tax by 7 February.
Terminal tax is paid about 12 months after the financial year is over. For example, the 2022 year finished on 31 March 2022 and the tax for this will be due either on 7 February or 7 April 2023.
Because there is such a long gap between the earnings at the beginning of the financial year and the final payment of tax, there is provisional tax. This is a set of prepayments that count toward your final terminal tax payment. In other words, they are payments in advance based on the previous year’s earnings.
If your tax for one year is over $5,000, you will need to pay provisional tax for the following year. We calculate provisional tax as a 5% increase on the tax paid in the previous year or 10% if based on the year before that. This means if your tax in 2022 was $10,000, your provisional tax will be $10,500, paid across your provisional tax payments.
There are variations as to how many or when these payments are due based on GST registration and if you have an extension of time with IRD. However, the most common dates for payment are 28 August, 15 January, and 7 May.
You can find out more about tax payments on the IRD website:
If your income (before expenses) is over $60,000, you need to be GST registered. However, you can choose to be GST registered if your income is less than $60,000 or if you think your income will soon be over $60,000.
If you think your income may be close to the $60,000 threshold, it is a good idea to consider registering for GST as the IRD may require you to be GST registered from the moment you earn over $60,000. If you have not been collecting GST, you may have to pay it out of your profit instead.
To find more information, follow the link to the IRD website:
The short answer is yes, you do need to keep all your receipts and invoices for seven years from when IRD received your tax return. All of them.
If you have an electronic copy, you do not need a physical copy as well. However, you will need a physical copy if it is the only one you have.
KiwiSaver is a saving scheme that comes directly out of PAYE wages, although you can also make contributions if you are not on PAYE. If you are on PAYE, your employer will also make contributions and you may be able to get some funds from the government. If you are self-employed, you need to add funds to your KiwiSaver yourself.
This money is then put into investments. You can choose the risk level with your KiwiSaver provider.
The money in your KiwiSaver can only be withdrawn in specific situations:
- You are buying your first home and want to use the money as part or all of the deposit
- You are experiencing significant financial hardship
- You permanently move overseas
- For health reasons that are long-term or permanent
- Once you are 65, the current pension/retirement age
Here are some links that explain KiwiSaver in more detail:
Xero is an accounting software made for small businesses, accountants, and bookkeepers. It allows multiple users to work on the same information in the cloud at the same time. Xero has multiple capabilities, including payroll and GST filing, billing of your clients (direct from your phone if you like), and beyond.
You can check out more on Xero at:
Xero is a very useful tool, but it does not replace a tax agent or accountant. While Xero may give you all the tools required to complete your tax return, there are things a tax agent or accountant knows that you may not.
You do not need a tax agent to file a return. However, it is recommended that you have one, especially if you are a bigger business or do not feel confident with numbers. It’s a bit like hiring a plumber to fix a leak if you don’t know enough about plumbing to solve the issue yourself. And much like a poorly fixed leak, an incorrectly completed tax return may be more costly to you in the long run than the cost of professional help.
The documents we need depend on the type of income sources you have. The best way to know is to look at the questionnaires on our resources page, as they have a checklist.
If you are new to our practice, we will need some further documents for anti-money laundering legislation reasons. This includes your driver’s license and/or passport, plus a document showing proof of address.
We do not offer packages as our work is individualised to each client. This means you will get a personalised service based on what you need. Please get in touch with us to find out more.
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We’d love to find out more about your tax and/or accounting requirements.
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