Tailored tax codes help people pay the right amount of tax when they get paid, which means they’ll avoid a large tax bill or refund at the end of the year. Tailored tax codes are useful when an employee:
- has more than one job
- is receiving a benefit or ACC and working at the same time
- has business losses to carry forward from previous year, but is now earning a salary or wages
- is receiving an overseas pension that is taxable in New Zealand.
If we give one of your employees a tailored tax code certificate it will be valid from the date we approve it until the end of the tax year (31 March). When it's about to expire, we'll contact your employee through myIR in time for them to reapply. They will then have to give you the new tailored tax code certificate.
If your employee stops using a tailored tax code they will need to complete a new Tax code declaration - IR330.