myIR, payments and more
- About instalment arrangements
- Guidelines for making an instalment arrangement proposal
- How to make an instalment arrangement proposal
If your client can't pay an assessment in full and on time, an instalment arrangement might be an option to consider. An arrangement allows your client to pay the assessment in full at a later date and over time. You (or your client) should contact us as soon as possible to propose or renegotiate an instalment arrangement.
We expect arrangements to have the tax paid in the shortest possible time and that your client is still able to meet their ongoing tax obligations (eg, PAYE and GST).
Some late payment penalties will be stopped, or reduced, when an arrangement is accepted - as long as the agreed payments are made on time. Use-of-money interest will continue to be charged during the arrangement.
Below is a summary of the information you should include when proposing an arrangement. For the full information, please see our:
- Correspondence guidelines (IR1025)
- Standard Practice Statement SPS 11/01: Instalment arrangements for the payment of tax.
Outstanding returns generally need to be filed and an assessment made before we can consider a proposal for an instalment arrangement.
When proposing an arrangement, information we need about your client includes:
- their name, IRD number, address and contact details
- the tax types and periods the arrangement is for
- how much they're proposing to pay, the frequency of payments and how they'll pay.
You should also try to include as much current supporting information as you can. This will help us make a decision on the proposal. Supporting information could be:
- bank statements, finance statements and/or the profit and loss account
- a statement advising the reasons for proposing an arrangement and whether this will affect your client's ability to meet their ongoing tax obligations
- documents clarifying your client's financial position including assets and liabilities and a cash flow forecast.
- a completed Disclosure of financial position (IR590).
We'll reply to any instalment arrangement proposals within three to five working days. Some penalties won't be charged while we're considering the proposal. We'll contact you if we need more information.
There is no standard form to use to make a proposal. You, or your client, can propose an arrangement by:
- completing an instalment arrangement proposal online
- secure mail
- posting it to us.
If your client's account is being case-managed, you'll need to propose an arrangement through their case manager.
Your client should make the payments outlined in the proposal even if we haven't confirmed the arrangement.