You may be aware that Inland Revenue installed a major upgrade to their computer systems over the Easter period. This upgrade will result in quite a few changes in the way we relate to IR, and to the information they provide us. It will take a while to work through exactly what this means for you and for us, but there are a couple of things we want to draw to your attention right now …
The MyIR web service can be confusing
Many clients have received letters from IR encouraging them to log into MyIR. This is perfectly fine, but please be aware that it can be confusing – for example, some pages show an “Outstanding balance” in big red letters for an amount that is not actually due until later in the year. On first impression, the way it is presented looks like there is tax overdue, which is not the case. Please be assured that we monitor your tax affairs and advise you before each due date of what tax is due. It is possible that things can change (for example, if IR has some information we did not have), and we want to make sure everything is in order, so if you see anything on MyIR that concerns you, please ask us
If IRD puts money into your bank account, that you are not expecting, you might have to pay it back
We are aware of some taxpayers who have received refunds from IR over the last week that are incorrect. This appears to be the result of some glitches in the transition from their old system to the new one. Be assured that IR will ask for this money back. If you have received a deposit into your account from Inland Revenue that you were not expecting, please contact us and we will check that it is valid.
On an ongoing basis, IR are planning to automatically send refunds to salary and wage earners if their PAYE has been over-paid during the year. This effectively makes the Tax Refund companies redundant (those who advertised on TV and had stalls in the mall). The problem with this is that IR only know what they know … if we are preparing accounts for your business, your rental property or your investments (especially if it is the first year for any of these), or you are a beneficiary of a trust that decides to make a distribution, it is quite possible that IR’s system will decide that you are due a refund and pay it to you before we have submitted your return. If we are preparing tax returns for you, and you receive a refund – please get in touch with us.
We have the full picture
If Inland Revenue call you or you call them after receiving a letter from them or looking at MyIR, it is likely the person you speak to does not have as much information about your affairs as we do. We have software that monitors your tax status, and there are often matters that we are dealing with that have not yet filtered through to IR’s system. If you have any doubts, please ask us.
The material on this website is for the benefit and information of clients. The items are in the nature of general comments only, and are not to be used, relied or acted upon without seeking further professional advice. Hounsell Accounting Limited accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice