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JayADee

1768 posts

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#269689 2-Apr-2020 14:33
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Hi guys, the past few years when filling out my IR3 online as a sole trader/contractor the IR10 was filled out at the same time then when you hit submit it submitted both. I am filling my tax form in this year and I have ticked the box to fill in an ir10 as well but I am getting only one form before I get a submit button. 

 

Has anyone filled their ir3 and ir10 online yet? Does the next form appear after you submit the first one?

 

Thanks...

 

Also, I added the wage subsidy as income since I got it before April 1 ... is that right?

 

Any help appreciated.


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pom532
109 posts

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  #2453151 2-Apr-2020 16:13
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Looks like you're correct in including the wage subsidy.

 

https://www.ird.govt.nz/covid-19/tax-relief/wage-subsidies

 

 

Example: Self-employed dance teacher

 

 

 

 

Ani Kowhatu is a self-employed dance teacher and provides regular private lessons at her home, as well as tutoring a couple of dance students at a local high school. She does not employ any other dance instructors and is not registered for GST. Ani applies for and receives a $4,200 wage subsidy from MSD.

 

Ani is required to account for income tax on the wage subsidy received as it is a payment to replace loss of earnings. Ani will include the subsidy, as well as her regular income for the rest of the year, in her Individual income tax return - IR3.

 

Please note that the tax-free treatment in respect of employers who receive the wage subsidy for their employees does not apply to self-employed people who receive the subsidy for their personal loss of income. The subsidy will only be exempt income for a self-employed person to the extent it is used by them to subsidise wages of their employees.

 

 


marej
186 posts

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  #2453178 2-Apr-2020 16:40

But surely you declare the wage subsidy in the 2020/2021 year since they paid it 12 weeks in advance which is not normal.  Most of it relates to the current income year.


 
 
 
 


Geektastic
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  #2453208 2-Apr-2020 17:44
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It’s pretty silly to pay people a wage subsidy then claw part of it back as tax. Just money go round. Pay it net and skip the paperwork.





marej
186 posts

Master Geek


  #2453212 2-Apr-2020 17:48

Well if you have to declare it in your 2020 return, then its more than likely it will push people to a higher tax bracket and increase their tax burden than if they had actually paid the 585 on a weekly basis.

 

 

 

I received 7K on the 25th of march, and thought I would just declare 585, but this just seems silly.


JayADee

1768 posts

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  #2453246 2-Apr-2020 18:53
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I suppose you could declare the amount intended up until the new tax year and keep the rest for the following tax year... So if I got it a week ago I declare a weeks worth of the subsidy then declare the rest the 20/21 tax year...

 

 

 

Has anybody filled in the online form yet and got an ir10 and ir3?


snnet
947 posts

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  #2453304 2-Apr-2020 20:30
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JayADee:

 

I suppose you could declare the amount intended up until the new tax year and keep the rest for the following tax year... So if I got it a week ago I declare a weeks worth of the subsidy then declare the rest the 20/21 tax year...

 

 

 

...

 

 

I don't think that's the correct way of reporting it, though... It does seem a bit silly.. as for your other question, sorry, I leave my company's return to an accountant


JayADee

1768 posts

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  #2453696 3-Apr-2020 12:25
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snnet:

 

JayADee:

 

I suppose you could declare the amount intended up until the new tax year and keep the rest for the following tax year... So if I got it a week ago I declare a weeks worth of the subsidy then declare the rest the 20/21 tax year...

 

 

 

...

 

 

I don't think that's the correct way of reporting it, though... It does seem a bit silly.. as for your other question, sorry, I leave my company's return to an accountant

 

 

 

 

I don’t know, was hoping one of you would. It doesn’t matter to me one way or the other, I would just like to know so I can submit it. :) I've asked on the gov Covid FB page... will post back here if I get an answer.


 
 
 
 


JayADee

1768 posts

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  #2455601 6-Apr-2020 11:29
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From the ird:

 

''The covid-19 amount is a compensation and should be spread across the years to which it relates. This means the portion ("about five days") pertaining to 2020 should be in the 2020 tax return and the balance in the 2021 tax return.''

 

Also, once you submit the IR3 if you've ticked the box to include an ir10 it comes up next.


eracode
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  #2467587 22-Apr-2020 08:43
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JayADee:

 

Hi guys, the past few years when filling out my IR3 online as a sole trader/contractor the IR10 was filled out at the same time then when you hit submit it submitted both. I am filling my tax form in this year and I have ticked the box to fill in an ir10 as well but I am getting only one form before I get a submit button. 

 


Has anyone filled their ir3 and ir10 online yet? Does the next form appear after you submit the first one?

 

Thanks...

 

Also, I added the wage subsidy as income since I got it before April 1 ... is that right?

 


Any help appreciated.

 

 

@JayADee

 

Have you found a way to fill in an IR3 online for the 2019-20 tax year on the IRD site? There was one there in past years but I can't find it now.

 

Edit: Maybe they haven't put it back up online yet - possibly because they may not have loaded all the interest, dividend etc income info that they would have received from banks and so on.





Sometimes I just sit and think. Other times I just sit.


JayADee

1768 posts

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  #2467623 22-Apr-2020 09:49
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Hi, my IR3 was available before the update they did on the 19th. I had already started filling it in and then I got an email telling me it was available. The dividend income was already loaded on mine. Interest wasn’t but then a) they don’t have that account info b) it isn’t much interest and they probably owe me money on it.


eracode
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  #2467624 22-Apr-2020 09:53
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JayADee:

 

Hi, my IR3 was available before the update they did on the 19th. I had already started filling it in and then I got an email telling me it was available. The dividend income was already loaded on mine. Interest wasn’t but then a) they don’t have that account info b) it isn’t much interest and they probably owe me money on it.

 

 

Thanks - interesting - my IR3 is not there. Can't even see a way to start doing it. I am familiar with this because I have done it in previous years. Maybe it's still coming.

 

Edit: Just found this on their site. It helps explain a few things for me:

 

https://www.ird.govt.nz/income-tax/income-tax-for-individuals/what-happens-at-the-end-of-the-tax-year

 

 





Sometimes I just sit and think. Other times I just sit.


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