If you don’t think you can make a payment, or if you're late, contact Inland Revenue to arrange a payment plan. This will often limit the amount of interest and penalties you need to pay. You can do this by logging into your myIR account and navigating to 'request an instalment arrangement'.
You can also contact our Support team - we’re experts at liaising with Inland Revenue and helping organise a way for you to pay off those tax bills.
You'll need to let us know:
- Tax type e.g. GST, Income Tax, FBT
- Frequency of payments - monthly, fortnightly, weekly
- Amount of each payment - the IRD sets out a minimum amount based on the amount of your debt, but you can opt for a higher amount
- Start date of the payment plan - must be more than 7 days from application
- Reason you need this arrangement - IRD always note on their file once the plan is approved
Late payments attract a range of penalties and interest depending on the type of tax, so we always recommend an honest conversation with Inland Revenue about your situation as soon as you can have it.
Another option is tax pooling. Tax pools are registered third parties that can backpay your tax to the date it was due and charge you a fee to do this. The fee is usually much less than the interest charged by the IRD, plus you avoid late payment penalties.
TMNZ and Tax Traders are two of the most common tax pools used by Beany clients. Contact us if you want to know more about this option.