Salary and wage earners
Confirming the right tax code is being used across total income earned for salary and wage earners is important in ensuring correct payments are made. To avoid getting a bill you should use:
- M ("main") tax code with your largest source of income (ME tax code if total income is between $24,000 and $48,000)
- If you have more than one job a secondary tax code should be used with all other employers
Receiving a benefit
If you receive a benefit from Work and Income in addition to having supplementary employment such as a part-time job, a secondary tax code will need to be used. The M tax code will be used for your benefit payments and a secondary tax code will be needed for the additional employment.
Self employed
For those that are self-employed and required to pay provisional tax, choosing the appropriate tax calculation that suits your situation is important. These include
- Standard option
- Estimation option, or
- Ratio option (available from the 2008 -09 income year)
To find out more about the ratio options click here
Student loan
To find out what you need to pay if you have a student loan click here
Receiving Working for Families Tax Credits
If you're receiving Working for Families Tax Credits and you or your partner have any changes to your income or you family circumstances you should inform the Inland Revenue immediately
Changing your tax code
Use the IR330 Tax code declaration form to change your tax code when your job or situation changes. The form can be downloaded here