If your business has a 31 March balance date, the standard deadline to file your income tax return with Inland Revenue is 7 July.
Many business owners don’t realise there are ways to obtain more time.
Here are the 3 main ways to get an extension, including what to do if you’ve missed your deadline.
1. Apply directly to Inland Revenue
You can apply to Inland Revenue before the 7 July deadline through myIR, by phone, or by post.
You’ll need a valid reason, such as:
- Serious illness
- Waiting on essential information from a third party
- An adverse weather event or other exceptional circumstance
2. Use a registered tax agent (the easiest option)
If you’re linked to a registered tax agent, you’ll generally receive an Extension of Time (EOT) to file your return, subject to meeting Inland Revenue’s eligibility requirements.
For many taxpayers, this extends the filing deadline until 31 March of the following year.
That’s an additional 9 months to file your return.
If you currently don’t work with a registered tax agent, you can apply here.
3. Change your year-end balance date
If a 31 March year-end isn’t genuinely suitable for your business, you can apply to Inland Revenue to change your balance date.
If approved, your filing deadline will generally move to the 7th day of the fourth month following your new balance date.
This option is relatively uncommon, but exists as an option.
Its usually only appropriate where there are genuine commercial reasons for changing your balance date, not simply to obtain a later filing deadline.
What happens if you miss the deadline?
If you don’t file on time and don’t have an approved extension, Inland Revenue may impose late filing penalties.
However, if the delay was caused by circumstances entirely outside your control, you may be able to apply to have those penalties remitted. whether you’re eligible for an Extension of Time, it’s worth finding out before assuming you’re already late.