First time tax time

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Forums › Finance and wealth management › First time tax time

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JayADee

2148 posts

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#1788550 26-May-2017 09:21

jonb:
A family member who will need to do a tax return for the financial year just gone, with about $20000 income and obviously with expenses. Clueless about this myself, being a full PAYE person.

Is it best muddling through yourself for that relatively small income, or getting an accountant to do it. Any recommendations for North Shore?

They could try filling in the online return to see how they go. Just don't hit the submit button or whatever it's labelled at the end. You can save the results, leave the page and come back later when you remember things like extra expenses or have to go away and do something so it's convenient. The online version also pretty much does the math for you so you can see if it matches up with your own spreadsheet or hand calculated results.

There are useful ird calculators online that do the depreciation calculations on assets for you if you need that. Ird also has a lot of info online on what you can claim like home office space etc. Also if you call the ird they will help. If you do get an unhelpful person, ring back and get a new person. Most of my experiences calling were good.

itxtme

2102 posts

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#1788585 26-May-2017 10:03

JoJo2:

For those of you who pay your accountant for your Xero subs, and you are paying full price, then you are usually also lining your accountants pockets. This of course is how things go, but I am interested to hear how many of you didn't realise this.

I was aware of this because my accountant brought it to my attention when I signed up with him. I had already been using xero for 2 years he just changed my subscription and charges me the cost of the software, no markup

Behodar

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#1810052 1-Jul-2017 12:49

This seems like the best place to ask this:

I'd been renting out a house for a few years, but no longer do (stopped before 31/03/16). During that time I was filing an IR3 tax return each year with my rental income. Prior to that I wasn't consciously filing a tax return.

Mum just rang up and asked whether I've done my return for this year. Naturally I answered No, and got back "well you need to do one before the 7th!" I asked why, since I don't have the rental anymore. Mum reckons that I've had to do a return ever since I've had a job (which was before getting the rental), and that she was doing them for me, but I'm not sure whether that's correct: She certainly did the first couple after I got my rental but I have no memory whatsoever of ever doing a tax return before that.

IRD's site states that "In most cases, you won't have to do anything" and I don't seem to fall into any of the exceptions (eg. untaxed income) this year. So, do I have to do an IR3 tax return or not?

Hopefully someone can free me from this confusion :)

timmmay

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#1810053 1-Jul-2017 12:53

My understanding is you don't have to file a tax return unless you have income that's undeclared. I'm in no way an expert.

Behodar

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#1810054 1-Jul-2017 12:53

timmmay:

My understanding is you don't have to file a tax return unless you have income that's undeclared. I'm in no way an expert.

That's what I thought too, and IRD's site seems to confirm this. I think mum's mistaken about doing them before I had the rental.

Thanks for the response :)

timmmay

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#1810056 1-Jul-2017 13:00

It changed some time a while ago. Everyone used to have to file a tax return, now very few people do.

JarrodM

969 posts

Ultimate Geek

#1810072 1-Jul-2017 14:17

Behodar:
This seems like the best place to ask this:

I'd been renting out a house for a few years, but no longer do (stopped before 31/03/16). During that time I was filing an IR3 tax return each year with my rental income. Prior to that I wasn't consciously filing a tax return.

Mum just rang up and asked whether I've done my return for this year. Naturally I answered No, and got back "well you need to do one before the 7th!" I asked why, since I don't have the rental anymore. Mum reckons that I've had to do a return ever since I've had a job (which was before getting the rental), and that she was doing them for me, but I'm not sure whether that's correct: She certainly did the first couple after I got my rental but I have no memory whatsoever of ever doing a tax return before that.

IRD's site states that "In most cases, you won't have to do anything" and I don't seem to fall into any of the exceptions (eg. untaxed income) this year. So, do I have to do an IR3 tax return or not?

Hopefully someone can free me from this confusion :)

Log into myIR and see whether it says Salary and wage earner/pts customer, or if it says IR3 filer you are required to file. If it does say IR3 filer just ring up the IRD and say you no longer have your rental property and mention it was disposed of before 31/3/16 and they can update their record to salary and wage earner only and you won't be required to file anymore.

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Behodar

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#1810081 1-Jul-2017 14:41

I logged in and there's a "do I need to file?" button, which asked a few questions then told me I don't need to file. Thanks for the response.

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