Government

What does my IRD letter mean?

A letter from Inland Revenue can look alarming even when nothing is wrong. Here is how to read the common ones, and what to actually do.

Got one of these in front of you?Snap a photo and Sayplain explains your exact letter, free.

First, don't panic

Most IRD letters are routine: a change to your tax code, an automatic income tax assessment, a reminder, or a request for information. A letter is not the same as a fine or a debt. The key is to find two things: what IRD wants from you, and by when.

Common IRD letters and what they usually mean

  • Income tax assessment: IRD has worked out whether you paid the right tax for the year. It will say if you have a refund coming or an amount to pay.
  • Tax code change / tailored tax code: your employer will deduct a different amount from your pay. Usually nothing for you to do.
  • Request for information: IRD needs a document or detail from you, with a deadline. This one you must act on.
  • Arrears or overdue notice: IRD believes you owe money. Check the amount and the due date, and contact them if you can't pay it all at once.

What to do next

  • Find the deadline and the amount (if any). These are the only two numbers that usually matter.
  • If money is owed and you can't pay it all, you can ask IRD for an instalment arrangement, often online in myIR.
  • If you think it's wrong, you can dispute it, but do it before the deadline on the letter.
  • Keep the letter. You may need the reference number if you call.

Common questions

Is an IRD letter a fine?

No. A letter is information or a request. A penalty or shortfall, if any, will be stated clearly with an amount and a due date.

What if I can't pay what IRD says I owe?

You can apply for an instalment arrangement to pay it off over time, usually through myIR or by phone. Doing this before the due date avoids extra penalties.

Do I need an accountant to understand it?

Often not for routine letters. Paste or photograph it into Sayplain for a plain-English summary first, then see an accountant if real money or a dispute is involved.

Stop guessing what it means

Sayplain reads your actual document and tells you what it says and what to do. Free to try.

Decode a letter free

More guides