Why IRD compliance matters
Running a business in Aotearoa has its fair share of moving parts—and staying on top of Inland Revenue (IRD) obligations is one of the big ones. Missing deadlines, miscalculating PAYE, or overlooking GST can lead to penalties, fines and use‑of‑money interest (UOMI). At CB Solutions, we’d rather you spend time growing your business while we handle the IRD obligations for you.
1) Understand your NZ tax obligations
Every business structure—Sole Trader, Company, Partnership or Trust—has IRD responsibilities. The most common are:
Income tax (and provisional tax)
File annual income tax returns and pay terminal tax.
If your residual income tax is above the threshold, you’ll likely pay provisional tax in installments. For a 31 March balance date, installments typically fall late August, mid‑January, and early May (exact dates depend on method and IRD calendar).
Contractors may be subject to schedular payments (withholding tax). Interest recipients may have RWT obligations.
GST (Goods and Services Tax)
Register when turnover is $60,000+ in any rolling 12‑month period (or if you expect to reach it in the next 12 months).
Choose a filing frequency (monthly, two‑monthly, or six‑monthly) and an accounting basis (invoice, payments, or hybrid/cash‑invoice).
File and pay via Xero/MYOB/COUNT or myIR. Know the difference between standard‑rated, zero‑rated, and exempt supplies.
Watch for special areas: imported services (reverse charge), low‑value imported goods, and asset sales.
PAYE (Pay As You Earn) & Payday filing
If you have staff, you must submit employment information for each payday—generally within 2 working days when filing electronically via myIR or your Payroll software.
Pay PAYE, ESCT, KiwiSaver, and related deductions on time. Most small employers pay monthly by the 20th; large employers pay twice monthly (5th and 20th).
Consider ACC levies and fringe benefit tax (FBT) where applicable (e.g., vehicles with private use, subsidised benefits).
Tip for Kiwis: Keep your NZBN handy and consider e‑Invoicing to speed up payments and reduce errors.
2) Keep accurate records (7‑year rule)
Good records are your compliance safety net. Keep invoices, receipts, bank statements, payroll records, asset registers, GST workpapers, and contracts for at least 7 years. Cloud systems make this painless and audit‑ready.
How CB Solutions helps:
Cloud Accounting / Bookkeeping setup and clean‑ups
Paperless workflows and receipt capture
Reconciliations and real‑time dashboards
3) Meet the key deadlines
Late or missed submissions can trigger penalties and interest. Add these to your calendar (and let us automate reminders):
GST returns & payment: Commonly due on the 28th of the month following your taxable period (some exceptions apply—check IRD’s calendar).
Provisional & terminal tax: Dates vary by balance date and method (standard uplift, estimation, AIM). We’ll map your exact timetable in myIR.
Payday filing: Employment information due within 2 working days (electronic).
PAYE/ESCT/KiwiSaver payments: Usually 20th of the following month for small employers; 5th and 20th for large employers.
Automated reminders and on‑time submissions
Cash‑flow planning for upcoming tax dates
Liaison with IRD if arrangements are needed
4) Keep communication open with IRD
If cash is tight or you’ve hit a speed bump, contact IRD early via myIR secure mail. They’re often open to instalment arrangements, which can minimise penalties and UOMI.
5) Get expert NZ support
As your business grows, rules get trickier. A trusted partner saves time, reduces risk, and gives peace of mind.
What you’ll get with CB Solutions
FAQs
What is IRD compliance in NZ?
Staying up to date with GST, PAYE/payday filing, income tax (and provisional tax), FBT/ACC where relevant, filing through myIR, and keeping 7‑year records.
When do I need to register for GST in New Zealand?
When your taxable supplies reach or are expected to reach $60,000 in any 12‑month period. You can register voluntarily earlier if it suits your cash flow.
What is payday filing and when is it due?
You must submit employment information for each payday—generally within 2 working days when filing electronically via myIR/payroll software.
Are sole traders subject to PAYE?
Sole traders pay income tax on their profits (and may pay provisional tax), but PAYE applies when you have employees. Contractors may have schedular withholding.
How long must I keep business records in NZ?
Keep records for at least 7 years. Cloud storage makes this simple and audit‑ready.
What’s the difference between provisional and terminal tax?
Provisional tax is paid during the year based on expected income; terminal tax is the final wash‑up after your return is assessed.
Can I deregister for GST if revenue drops below $60k?
Often yes, but you’ll need to consider assets on hand and potential adjustments—talk to an accountant first.
What is FBT and do I need it?
Fringe Benefit Tax applies to certain non‑cash benefits (e.g., vehicles with private use). If you provide benefits to staff, you may have FBT obligations.
Ready to simplify your IRD compliance?
Get in touch with CB Solutions for expert Accounting, Bookkeeping and Payroll support to save time, avoid penalties, and focus on growing your business. Contact us today!
