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How to pay tax

If you’re earning any sort of income, you have to pay tax. Make sure you're paying the right amount so you do not end up with a large bill.

Tax relief and income assistance is available to people affected by the downturn in business due to the COVID-19.

If you earn a wage

If you’re earning wages and you’re on the right tax code, you will not have to do anything at the end of the tax year.

Your employer will deduct tax using the code you gave them when you started work. Make sure they’re using the right code or you could pay the wrong amount of tax.

Your tax code

You can work out how much tax should be taken from your wages.

PAYE calculator

If you get a lump sum payment

You’ll need to pay the correct tax on a lump sum payment.

A lump sum payment might be for holiday pay or a redundancy payment when you leave your current job.

Lump sum payments

If you’re self-employed

If you’re self-employed, you’ll need to manage your own tax and file a return at the end of the tax year. Inland Revenue will consider you a one-person business.

Make sure you know how to:

Income tax for business and organisations

At the end of the tax year

Most people who earn salary or wages pay the correct amount of tax and do not need to do anything at the end of the tax year. But you can check if you’ll get a refund.

You only need to file an income tax return (IR3) if you:

  • are self-employed
  • earn income from a business, rental property, or from overseas.

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