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You might be able to get the independent earner tax credit (IETC) if you move from a benefit to a job. The independent earner tax credit will start the month after your benefit stops.

How to get the independent earner tax credit during the year

If you're going to earn between $24,000 to $48,000 (including benefit income) then you can get the independent earner tax credit during the year by choosing a special tax code. This means you'll pay less tax each payday.

To make sure you do not underpay your tax, you'll need to give your employer two Tax code declaration - IR330 forms:

  • An IR330 when you start your job, if it's during the same month you stopped your benefit. Choose tax code M or M SL.
  • A new IR330 after your last pay in the month you started your job. Choose tax code ME or ME SL.

At the end of the tax year we'll send you an income tax assessment. If you did not receive the right amount of independent earner tax credit, you might get a refund or have tax to pay.

How to get the independent earner tax credit at the end of the year

If you're entitled to get the independent earner tax credit but did not get it during the year, then you'll get it at the end of the year after your income assessment has been processed.

You will not get it for the months you got a benefit. For example, if you got a benefit for 3 months and worked for the rest of the year, you can get the independent earner tax credit for the remaining 9 months.