If you're an employee working for salary or wages, or a self-employed contractor receiving schedular payments you must:
complete a Tax code declaration (IR330) if:
- you start a new job
- your situation changes and you need to change your tax code
- you've repaid your student loan in full
- you start or stop being eligible for the independent earner tax credit
- you already have a job and you think your tax code is wrong (you may need to ask your employer which tax code you're on).
- give the completed and signed form to your employer, who will update your tax code.
What happens if you don't complete an IR330?
If you don't complete an IR330, your employer will deduct PAYE (pay as you earn) or schedular tax, using the no-notification tax rate. The no-notification rate is 47.04 cents in the dollar (including ACC) which is a much higher tax rate than usual.
Choosing the correct tax code
For help choosing the correct tax code, use our decision tree to work out your tax code.
It's your responsibility to ensure your employer has the correct tax code for you. If you choose the wrong tax code, you may not pay enough towards your tax and student loan obligations (if applicable) and could end up with a tax bill at the end of the tax year, or be required to make additional repayments to recover significant under-deductions if you have a student loan. If you use the wrong tax code we can write to your employer and ask them to change it to the correct code, and ask them to make additional deductions.
If your employer uses the wrong tax code without you knowing, you'll still be liable to pay the amounts that should have been deducted.
Find out more
Date published: 04 Apr 2012