The tax refund season runs from March through to June. You can apply for your tax refund at any time of the year but getting your application in within this period will mean you will receive the new year’s tax refund as soon as these are released by Inland Revenue.
From March 20th applying for you tax refund will place you in the MyTax priority queue to have your 2017 refund assessment completed. Because the 2017 financial year has not yet ended, we will also make sure that you have received all available refunds for the previous five financial years (2012-2016). It’s important that you get your 2012-2016 assessment completed before the 31st of March otherwise you could lose your 2012 refund. Once the new financial year has begun 2012 will be unavailable as it will be time barred with Inland Revenue.
The 31st of March marks the end of the New Zealand financial year (tax year). In New Zealand our financial years run from the 1st of April through to the 31st of March. This can be confusing as it differs from the calendar year. But not to worry! The staff at MyTax are all experts which means regardless of when you apply for your tax refund, we will make sure that all possible years have been checked for any available tax refunds. We also keep in touch with you via email to let you know when the next financial year is about to end.
The new financial year is here! If you have not already submitted an application for your tax refund, it’s time to send that in. This will ensure that you’re at the front of the queue to have your tax refund assessment calculated. Once your application has been submitted you can sit back knowing that your tax agent will be in touch as soon as your tax refund assessment is ready.
The start of the new financial year is also a good time to make sure that your tax codes/rates are correct. To help you out with this we have a complete list of the New Zealand tax codes right here. Once you have checked your tax code is correct you can jump over to Inland Revenue’s website to make sure that you are using the correct RWT rate on any interest you will be receiving and that your PIR rate is correct for any Portfolio Investment Entities (such as your Kiwisaver).
Throughout April your employer will be busy getting your income details lodged with Inland Revenue. As soon as this has taken place we will be back in touch to gather any additional information for your tax refund assessment. If no additional information is required you can expect your tax refund result to be heading your way.
If you are still waiting for your tax refund result in May it’s likely that your employer is still working on getting your income details lodged with Inland Revenue. Some employers will lodge their income details earlier than others, which can be frustrating, but there is still plenty of time as Inland Revenue will not release the new refunds until June. We will let you know as soon as an update occurs. If you are worried about your income details not being lodged you may wish to give your employer a call to find out when this will be completed. You can also check up on your account to make sure that we haven’t requested any further information from you.
May is also the time that you can expect to receive your tax certificates for any interest you have earned or donations you have made. If you have received a tax certificate then make sure you give us a call or send us through an email so that we can update the details. If you have received interest, dividends or Maori authority distributions (over $200) we need to include these in your tax refund assessment, so remember to get in touch! If you have made donations then we can file a donation rebate for you to claim an EXTRA refund! All you need to do is send your receipts through to us either by email or post and we will get your donation rebate underway.
Finally, June has arrived and Inland Revenue is ready to release your tax refund! Inland Revenue generally have tax refunds released around the second or third week of June. To ensure your tax refund is paid out to you without any delay, make sure you have checked your account and your details are all up to date. We will then be contacting you as soon as your tax refund is ready to be paid!
If during the financial year you have received Working for Families Tax Credits or a form of government benefit there is a chance your refund will require additional work to be released. If you have received Working for Families Tax Credits then Inland Revenue will need to complete your end of year square up. This is to ensure that you have received the correct payments during the year. In cases where you have been underpaid or requested to receive your payment in one lump sum this assessment may result in an additional refund for you!
After Inland Revenue release the initial refunds they implement a 9 week processing time-frame to have the remaining checks completed and tax refunds released. We know this sounds like a daunting timeframe, especially when you have already waited so long! But we can assure you that we will be in contact with you every step of the way to keep you updated on the progress. You can also check your refund status on your online account. As soon as Inland Revenue have completed their checks we will be in contact with you to confirm that we have had your tax refund paid out.
If during the financial year your tax residency has changed or you have received income other than Salary/Wages (e.g. schedular payments) you will be required to file an IR3 return. An IR3 return has a separate processing timeframe to a Personal Tax Summary.
If you are required to file an IR3 return you can still apply with us at any time of the year and we will complete your tax refund assessment and file any available tax refunds for the previous five financial years. If we are completing your IR3 return for the most recent financial year we will still need to wait until your income details have been lodged with Inland Revenue – which like the rest of New Zealand should happen between April and May. But, as soon as your income details have been updated (and we have obtained any required information from you) we are good to go! Unlike a Personal Tax Summary which cannot be released until June, we can file your IR3 return as soon as your income details are ready. And once this has been processed by Inland Revenue we will be in touch to confirm your refund amount.
The important thing to note about IR3 returns is that they do have a 10 week processing time. This means that your refund could be ready anytime from the day after it’s filed through to 10 weeks later. How quickly this is completed is dependent on how busy Inland Revenue is. We will, however, be providing you with regular updates so that you know the moment that your refund is ready to be paid.
If you would like further information on the tax refund process check out the links below.