The IRD has said that with over 70 per cent of its payments currently being made online it wants to encourage more customers to pay electronically.
As a result of this the following changes will come into effect from 1 October 2014.
Cheque payments must arrive on time
Cheque payments posted to the IRD must arrive on or before the due date to avoid interest and late payment penalties.
Until now it's been acceptable if the letter's postmark was on or before the due date, but not anymore.
Limited Services at Westpac
From now on the service provided by Westpac will be reduced and no longer will customers be able to make cheque payments, or drop off returns and forms, at the bank.
Despite these changes there will still be the following payment options:
- make cash and EFTPOS payments at Westpac
- use online banking
- use credit/debit cards
- make international money transfers, or
- post cheques directly to the IRD
Taurus' recommendation is you use one of the electronic methods above. Most clients already do this and if you need any advice on how to change to electronic payments we suggest you talk to your bank, all of which have IRD payments options through online banking. This makes paying IRD very simple.
However, if you would still like to send your payment by cheque then please allow extra time for it to arrive by the due date, so as to make sure you avoid any penalties.