Inland Revenue’s customer services will be unavailable for just over four days this week as it rolls out the next stage of its programme to transform the tax system.
myIR will be switched off from Thursday afternoon at 3pm until Tuesday, April 17 at 8am so the latest round of changes can be made.
Inland Revenue contact centres and front of house services will also be closed but customers will still be able to pay accounts using online banking as usual.
Transformation Deputy Commissioner Greg James says the timing for the shutdown has been carefully selected after working with a number of heavy users of myIR to find the most convenient time.
“Moving these tax types and the associated data over to our new computer system is no small task so we’re taking the system offline to allow a smooth transition.”
ir-File, used by businesses to submit Employer Monthly Schedules will be unavailable from midnight on Wednesday.
Changes to the system: Accounting income method
AIM is a new option for provisional tax.
Once a business has opted in to use it, it will only pay provisional tax when the business makes a profit.
AIM uses new functionality included in approved accounting software to work out payments.
Businesses can continue to use another provisional tax option if the owner thinks the business won't suit AIM.
AIM reporting is suited to businesses if:
- the business is growing
- the business is new
- it has irregular or seasonal income
- it's hard to forecast the business’ income accurately
AIM reporting is designed to help small businesses avoid cash flow problems.
As long as they make payments in full and on time, there is no exposure to use-of-money interest.
If a business makes a loss, it can get a refund straightaway rather than waiting until the end of the year.
Reckon, Xero, and MYOB will have AIM functionality built into their software by April 1, 2018.
The Government has proposed changing when employers and payroll intermediaries file employer monthly schedules. The proposal is for employers to file returns every payday rather than monthly.
Employers will have time after their payday to file the returns.
Payment due dates for PAYE and other deductions won’t change.
Some of the benefits of the new system are that employers will be able to file returns when the information is available, instead of waiting until a later date, and having more up-to-date information means the IRD can work out tax and entitlements more accurately.
If the proposals become law, payday filing will be voluntary from April 2018 and required from April 2019.