IRD changes that affect self-employed Geeks like you and me

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Forums › Finance and wealth management › IRD changes that affect self-employed Geeks like you and me

geek4me

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#57846 26-Feb-2010 14:18

Did you know that to save money the IRD are no longer sending out Provisional Tax and Terminal Tax Reminder letters? I got caught by this. My last correspondence from the IRD in July last year showed I had some Terminal Tax to pay 7 February this year.

No reminder was sent like in past years which appears to be their new money saving policy. Call centre response was it is your "fiscal responsibility" to remember to pay your tax on time. If you forget they penalise you.

It's like getting only one Council Rates letter a year with no reminder - pay on time or be charged interest, who would remember?

The IRD could at least let their customers know about the change in policy - that would cost money they said.

Provisional Tax paying Geeks beware - pay on time or suffer the consequences.

We should have a Forum on IRD Technology as it affects us all.

bazzer

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#302486 26-Feb-2010 14:44

You won't forget again though, will you?

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geek4me

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#302495 26-Feb-2010 15:11

No I won't. The silly thing is the interest charged is only 8 cents a day and I have already had 3 letters reminding me to pay immediately. I've paid it 2 days ago - meanwhile another letter arrived today. So $1.50 in stamps plus paper, envelopes, handling fees. Since this was my first late payment since 1 April 08 I have been exempted late payment fees and only charged interest at 8 cents a day - how kind!

RedJungle

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#302538 26-Feb-2010 17:39

My accountant sends me reminders for such things, perhaps yours could too if you asked them?

robbyp

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#302544 26-Feb-2010 18:09

RedJungle: My accountant sends me reminders for such things, perhaps yours could too if you asked them?

Mine does too. However the situation is pretty poor. Many of the highest income earners in NZ can get away with not paying much tax, yet people who don't 'arrange' their affairs and are paying the highest rates of tax, get penalized for simple oversights. The IRD should have it all online anyway, and setup so it automatically emails you reminders, or just login, if they are really serious about saving money.

NonprayingMantis

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#302617 26-Feb-2010 23:03

how hard is it to set up a reminder in outlook or whatever calender/diary program you use to remind you of the dates?

you shouldn't be relying on reminder letters to make payments on time.

I have no sympathy.

Adamal

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#302629 27-Feb-2010 00:12

So how do you figure out how much you're meant to pay? Usually I just get a letter from them saying how much I have to pay and when I have to pay by.

Oncop53

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#302630 27-Feb-2010 00:34

I have no sympathy.

That is a bit harsh, but yeah could have set up a reminder.

On a related note lots of people seem to have trouble with the concept of electronic calendars. It is painful being the only person at work who uses their outlook caldendar, when meeting requests are emailed in I have to copy/paste this to an outlook appointment.

wazzageek

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#302649 27-Feb-2010 08:57

Oncop53:
I have no sympathy.

That is a bit harsh, but yeah could have set up a reminder.

Harsh, but yeah. When I was selfemployed I had a number of reminders like that. I also do things like car WOF, Registration, phone bills ...

On a related note lots of people seem to have trouble with the concept of electronic calendars. It is painful being the only person at work who uses their outlook caldendar, when meeting requests are emailed in I have to copy/paste this to an outlook appointment.

*Sighs* ... yes - I sympathise with this bit.

Work Collegue: When's that appointment?
Me: The detail is in your calendar - you even accepted it!

mikerussellnz

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#302660 27-Feb-2010 09:54

Same thing happened to me, expected the reminder, never got it. The reason people expect it is because they use to send them. Not everyone wants to think about tax, so after 7 months its easily forgotten.

Expected them to have sent me a letter about late payment but not got one yet either, so maybe they just think they will make more money if they never alert me and I forget.

How long before they alert you to the fact you didn't pay on time?

geek4me

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#302677 27-Feb-2010 12:17

I'm not complaining that the reminder letters have stopped, just that the IRD gave no warning. How hard would it have been to add a warning on my last Income Tax statement in July that they are no longer sending out reminder letters? No cost to them and a big help for me.

I have added future payments on my Bank account for all future payments due and will continue to do so from now on!

Reminder letters have stopped - no problem. I relied on them to pay IRD in the past. I suppose expecting IRD to be helpful and warn that they were stopping these was too much to expect.

Didn't they use to say on all correspondence a few years back "It's our job to be fair"? That's stopped so I guess with that gone they now don't need to be.

richms

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#302782 27-Feb-2010 20:46

Oncop53:
I have no sympathy.

That is a bit harsh, but yeah could have set up a reminder.

On a related note lots of people seem to have trouble with the concept of electronic calendars. It is painful being the only person at work who uses their outlook caldendar, when meeting requests are emailed in I have to copy/paste this to an outlook appointment.

You can just drag it over the calander icon below the list of folders and it will make an appointment from the content of the email, same for tasks.

and I set reminders for everything that I have due - books to the library, payments, putting the recycle bin out since its bi-weekly etc.

With free online calanders from google and windows live there is NO excuse not to use one IMO.

Richard rich.ms

yuxek

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#302787 27-Feb-2010 20:54

the ird should setup an automatic email reminder where they email people when things are due.

richms

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#302788 27-Feb-2010 20:56

That would rely on people keeping their email details updated, and I dont like the idea of personal info like that being sent unencrypted via email.

Richard rich.ms

geek4me

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#311633 26-Mar-2010 14:35

Surprise surprise, I received a Provisional Tax Payment reminder for May. This after the IRD said by phone they were no longer sending them out. Remembering to pay was our "fiscal responsibility".

I'd like to think my complaints to IRD or this thread on Geekzone has made a difference but I wouldn't hold my breath on that one. Then again maybe they're only not sending Terminal Tax payment reminders. You never know with IRD - they are a law unto themselves.