The due date to file income tax returns that do not have an extension of time is by 7 July each year. Make sure to file on time.

If you are link to us as your tax agent, the Commissioner can give tax agent clients an Extension of Time (EOT) to file up to 31 March the following year unless the client has more than 1 return outstanding.

It's important to make your payments to IRD by the due date to avoid penalties or interest. You can make payments electronically, by phone and at Westpac bank up to and including the due date. Click on the link if paying from overseas or if you would like to pay by instalments

Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year.

You'll have to pay provisional tax if you had to pay more than $5,000 tax at the end of the year from your last return.

If you overpay any tax or duty IRD will pay you back with interest. If you underpay tax, they’ll charge you interest.

If you pay or file a return late IRD may also charge a penalty.

Many people are coming under increasing financial pressure to pay their taxes in full and on time because they have been adversely affected by COVID-19.

To keep your business going, you may need to make arrangements with IRD to pay your tax over time. Read more

If you think you or your business may be affected by COVID-19, check out IRD’s current information which gets updated regularly as the situation changes.

If you have tax debt you cannot pay, IRD can help you. Individuals, companies, partnerships and trusts can apply for either:

• an instalment arrangement

• financial relief.

Working for Families Tax Credits (WFTC) aare payments for families with dependent children aged 18 and under. Entitlements are based on yearly family income and family circumstances.

There are 4 types of WFTC payments:

• Family tax credit

• In-work tax credit

• Minimum family tax credit

• Best start tax credit

Find out more

If you're in business, including self employed or working as a contractor, you need to keep records of your expenses and income and understand what types of costs count as business expenses.

The following are types of business expenses. Click on the expense to learn more from IRD:

Depreciation
Entertainment expenses
Environmental expenses
Home office expenses
Meal expenses
Mixed-use assets
Vehicle expenses

If you only earn income that's already taxed like salary, wages or investment income, then there are several sorts of non-business expenses you can claim such as:

• the cost for someone to complete and file your income tax return or assessment.

• cost of income protection insurance if the insurance payout would be taxable.

• any commission you were charged on your income from interest and dividends, except bank fees.

• interest on money you’ve borrowed to buy shares or to invest, as long as that investment will produce taxable income.

• interest you’ve paid to IRD for late payment of tax. You must claim this in the income year that you paid it.

If you’re a business owner and use part of your family home for work, you can make a claim for this as a business expense. In order to claim the expenses, there must be a connection between the use of your home and the business income being generated.

You can claim a portion of your household expenses, such as rates, insurance, power and mortgage interest. The portion you can claim relates to the area of your home that you use for business. Read more or follow the link to our Home Office Cost Questionnaire

If you’re using Xero or other accounting software, you can use the bills or creditors function to capture the expense.

Once you’ve entered your bill, either transfer the dollar amount from your business account to yourself and match it in your bank reconciliation, or pay the bill using the Owner Funds Introduced account.

Another option is to enter this to your accounting system through use of a journal entry and we always recommend that these are posted by an accountant.

From the beginning of the 2020-21 income year, depreciation deductions are allowed for non-residential/commercial buildings owned at the beginning of the income year or acquired after the beginning of the year and includes capital improvements.

The depreciation rate for a non-residential building is 2% DV, or 1.5% SL.

When the property is sold more that its adjusted tax book value, this will mean depreciation claimed becomes recoverable.

The threshold for Low Value Assets has been reset at $1,000.