Tax codes

• Tax code declarations for new employees and tax code changes
• Special tax codes are only valid for one tax year
• Use a secondary code if employee's secondary job is in education

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Tax code declarations for new employees and tax code changes

Your employee must complete a Tax Code Declaration IR330 (available from Inland Revenue) as soon as they start working at your school or if their tax details change.

If your employee does not provide a valid tax code on the IR330, your pay centre will deduct tax at the no-notification rate.

You must keep a copy of completed IR330 forms.

Tax Code Declaration IR330
Inland Revenue tax codes
Work out a tax code
Using the no-notification tax rate
Advise tax code or tax code change

Special tax codes are only valid for one tax year

A special tax code takes effect from either 1 April, or the date that Inland Revenue approves it (if it begins after the start of the tax year). Special tax codes end 31 March, at the end of the tax year.

Before the end of the tax year

If you have employees who have been on special tax codes, let your pay centre know their tax codes for the next tax year.

Ask your employee for:

• a new IR330
• their new Special Tax Code or Deduction Rate Certificate IR23 from Inland Revenue, if they have a special tax code for the next tax year.

If your pay centre does not receive this information, they will deduct tax at the no-notification rate.

Inland Revenue special tax codes
Using the no-notification tax rate
Advise tax code before end of tax year

Use a secondary code if employee's secondary job is in education

Only use a secondary code for secondary employment when your employee's primary job (their main income) is somewhere else and their secondary job is in education.

Do not use a secondary code if the employee only works in education, either in one school or a number or schools, and has a number of jobs in the school/s. This is because the education service payroll pays tax from all accumulated education income.