Income tax time arrives for earners

It's that time of year when income earners are eagerly awaiting news of a tax refund.

With campaigns for companies such as New Zealand Tax Refunds and My Tax Refund in full swing, more people are opting to sign up and let them do the work.

But there's a catch - they require a percentage of your tax return - meaning you might be missing out on some hard earned dollars.

Those who would rather keep their refund intact can take simple steps to get the ball rolling.

"Customers can use the personal tax summary calculator on our website. They can also register to use online services to get their income details," an IRD spokesperson said.

"If they work out they are entitled to a refund, they'll need to request a Personal Tax Summary from us."

Anything less than $200 will be automatically paid into a bank account or by cheque. If it's above that figure the tax payer will need to ring IRD and confirm their details.

"Until a customer confirms their income and an assessment is raised, then we will not know whether they have tax to pay or are due a refund.

"We are unable to say how much money is outstanding, either in refunds or in money owed, as these amounts will vary at any given time."

Not everyone will get a pleasant surprise, something as simple as an incorrect tax code could mean you end up owing money.

"If you are unsure about how much tax you may have to pay, then talk to your tax advisor or Inland Revenue."

See ird.govt.nz for more information.