John: first part-time job

Picture of John

With his teacher's help, John is considering part-time work after school. John heard about the What's Tax? website and he goes online and learns from Your first job that he needs an IRD number.

As John's never had an IRD number, he completes the application form (external link) he printed off the site and takes it to an Inland Revenue appointed verifier, along with the originals and photocopies of his forms of identification. John then receives a card printed with his new IRD number in the mail from Inland Revenue 8-10 working days later.

When John opens a bank account for his wages to be paid into, he's asked for his IRD number so any interest earned is taxed at the correct tax rate.

John gets a job and his employer gives him a Tax code declaration (IR330) form to fill in. John looks at the chart on the IR330 (external link) and decides that his tax code should be "M". By returning the completed form to his employer right away, he avoids having tax taken out at 45 cents for every dollar earned.

On What's Tax? John discovers that as long as he uses the right tax code or makes donations, it’s unlikely he will need to worry about a tax return. He remembers his first pay had extra tax taken out, though, so he wants to work out how much he might get back. He needs a summary of earnings (SOE) to make the calculation.; SOE's are available in May, so John requests an SOE then.

Once John receives his SOE he goes back to What's Tax? and follows the link to the personal tax summary calculator (external link) from What's Tax?

Only request a PTS (external link) if you're sure of a refund. If you owe tax you'll have to pay it. 

John's told to check that the information on the PTS is correct and to call INFOexpress on 0800 257 777 to confirm his PTS. By the time John receives his PTS 10 days later, he's forgotten what to do and logs back on to What's Tax? The Personal tax summary page under Everything you need to know tells him to:

  • check that all the information on the PTS is correct, and
  • check that his bank information is listed - if not, he should fill out the direct credit form attached to his PTS and return both to Inland Revenue, and
  • confirm the refund if it's over $200.

He also finds out that:

  • a refund of less than $200 will automatically be paid within 30 days of the PTS being issued, or
  • he has to pay any tax owing by the due date.

John hasn't provided his bank account number so 10 days later a cheque arrives.

You get your refunds quicker if we have your bank account details.