Working for families and your tax return

19110294_sIf you’re a business person who receives Working for Families Tax Credits (WfFTC) you might be wondering exactly what you have to do at the end of the financial year so we’ve created this step by step guide to make it easy for you:

(1)  Check your Change of Circumstances letter

  1. During April, you’ll receive an IRD Change of Circumstances (COC) letter.
  2. If you haven’t received your COC letter call the IRD on 0800 227 773.
  3. Check the information shown on the COC letter.
  4. If it’s correct you don’t need to do anything more with it.
  5. If it’s wrong you need to advise the IRD by either:
  • calling 0800 227 773
  • amending the COC letter and posting it back to the IRD
  • logging on to online services and updating the section called ‘My Family Details and Income’

Note: The letter shows your childrens IRD numbers, date of birth, partner details, shared care arrangements etc.

(2) Prepare IR215

  1. Your Income Tax Return includes a IR215 which adjusts your income for Working for Families Tax Credits.
  2. Your Chartered Acountant usually completes this for you when they prepare your Income Tax Return but you’ll need to check that it’s correct and ensure that you’ve given them details for all of the following:
  • if your children receive passive income (interest, dividends etc)
  • attributable trustee income  (this can even apply when interest isn’t paid on your beneficiary current/loan account)
  • attributable fringe benefits
  • non locked-in PIE income
  • certain pensions and annuities
  • tax exempt income
  • income of a non-resident spouse/partner
  • income equalisaton scheme deposits

Note: To read more about these, download the IRD guide AD140

(3)  File your Tax Return with the IR215 included.

(4)  The IRD calculates your refund or payment for Working for families Tax Credits.

(5)  You’ll receive a Notice of entitlement from the IRD (IR932)

(6)  Check that the IRD calculation is correct.  (If it’s wrong call 0800 227 773 or update it online)

If you’d like to dump all the complications and have the experts check the calculation for you then call us now on (09) 632 1137.  Our worry-free price for taking care of all the ‘hard stuff’ is only $250+GST.

 

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