Tax codes: Tax code declaration
Using the tax code declaration
Employee and contractor responsibility
Employees and contractors subject to schedular payments must complete a Tax code declaration (IR330) as soon as they start working for you.
What will the tax code be?
The employee or contractor's tax code may be a:
- main tax code
- secondary tax code
- special tax code
- code for casual agricultural employees
- code for election day workers
- code for schedular payments - this is for contract work, not for salary or wages
- student loan voluntary extra deduction (SLBOR) repayment code
- student loan compulsory extra deductions (SLCIR) repayment code.
See "Find out more" below to find out details on these codes.
What if the employee doesn't complete the IR330?
If an employee fails to fully complete the IR330, you must deduct PAYE at the no-notification rate.
What if the self-employed contractor doesn't complete the IR330?
If a self-employed contractor subject to schedular payments fails to fully complete the IR330, you must deduct tax at the no-notification rate.
What if my employee chooses the wrong tax code?
If we identify that your employee has chosen an incorrect tax code we will:
- write to you, telling you which employees are using an incorrect tax code
- advise you what the correct code should be.
You will need to:
- change their tax code to the code indicated in our letter
- deduct tax based on the new tax code.
Find out more
Making payroll deductions
Correcting employee tax codes
Student loan extra deductions
Date published: 26 Jan 2012
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