Easier IR3 forms

We're looking at making tax more straightforward. See what the proposed changes could mean for you.

Proposed

Easier IR3 forms 

We’re looking at making IR3 forms easier to complete. Here’s an example of how that could work for someone like Lexie.

What's proposed

Lexie has been self-employed for five years. She buys run-down vintage cars, restores them and then sells them online. Additional to her own business, she also works part-time at her friend’s café at the weekend, earning a salary and wage.  

Part of her income comes directly to her, while the other part is reported to Inland Revenue by her employer.

Lexie doesn’t mind doing her own taxes but she doesn’t like paperwork and much prefers to do things online.

Lexie no longer has to include her salary and wage income as Inland Revenue would automatically add this information on Lexie’s income summary. Inland Revenue would message Lexie to go online to her myIR account and request she completes her return, including any missing information.

The online return is no longer an online version of the paper form and Lexie is loving the new experience. She’s finding the new filing service easy to complete as she can upload all the information with a click of the button and the whole process just got that much easier.

Transcript  

Now

What happens now

Lexie has been self-employed for five years. She buys run-down vintage cars, restores them and then sells them online. Additional to her own business, she also works part-time at her friend’s café at the weekend, earning a salary and wage.  

Part of her income comes directly to her, while the other part is reported to Inland Revenue by her employer.

Lexie doesn’t mind doing her own taxes but she doesn’t like paperwork and much prefers to do things online.

Lexie is required to file an income tax return each year (an IR3 form). She has to add in her employment information in to the form, even though her employer has been sending the information to Inland Revenue on a monthly basis. She finds this a bit frustrating as she knows her friend has already provided this information to Inland Revenue.  

Lexie completes the form and sends it back either online or by post back to Inland Revenue, including all her financial accounts. IR then informs her how much income tax she needs to pay.