IRD into Stage Two of Business Transformation
IRD’s been working hard to be easier to do business with. As you read this, its new tax system is kicking in, giving you new and simpler ways to manage your GST obligations through myIR.
Enhancements include the traceability of GST transfers, and Notifications and Alerts sent when there is something for you to do in your myIR account.
From April, IRD will address more areas, including:
- Withholding Tax
- Gaming Machine Duty
- Fringe Benefits Tax
- Payroll subsidy
- Employment information (PAYE) collected in START.
But the biggest change will be to tax law.
AIM (Accounting Income Method), a new option for calculating provisional tax, allows payments to be based on your actual profit in that period – so if you don’t make a profit, you won’t pay provisional tax.
Income tax returns about to get easier
In April, IRD will also introduce payday reporting of PAYE information – that is, employers will need to report employee payments to Inland Revenue (IR) every pay run.To give you time to put systems in place, businesses will have a year before it becomes mandatory.
Hand in hand with that, IRD will begin collecting PAYE info for the 2018/19 year to allow pre-population of income tax returns. That should make life a bit easier for SMEs. What’s more, the release of Working for Families is being brought forward to 2019, to coincide with tax returns being done under the new system, which – again – will make things simpler for SMEs.