Whutuporo - Awesome Accountants
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Interest Rates for Payments With IRD Are Changing

Inland Revenue have announced that they are changing the interest rates paid by and to taxpayers who either under or overpay their tax – of course the rate it pays is dropping by more than the rate it charges. 
 
From 16th January, taxpayers who overpay their tax will be paid an interest rate of 4.3 percent, down from 4.67 percent. 
 
While those who underpay their tax will be charged 10.88 percent, down from 10.91 percent previously.  This is also charged when tax is not paid by the due date. 
 
Evidently the rates are driven by formulas, with underpayments based around the Reserve Bank’s floating first mortgage rate for new customers in the house market, plus 2.5 percent.  While overpayments rate is calculated on either 0 percent or the Reserve Banks 90-day bill rate minus 1 percent, whichever is higher. 
 
We understand that no one likes paying tax, but I am sure we can all agree that no one wants to pay the government more money than necessary.  This change is mostly going to affect those who underpay or bury their heads in the sand when it comes to taxes owing. 
 
Key takeaway here is that if you’ve got a tax debt, don’t ignore it – talk to us (Sam, our tax manager) so we can help you come up with a plan or get a payment arrangement put in place to minimise additional tax payable. ​
Other Bulletin Articles
  • Six Business Tips For 2025
  • IRD Interest Rates Are Changing
  • Confirmation of Payee Service
  • Whutuporo Team Holiday Stories
  • Introducing Samantha Witt

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Whutuporo Accountants
​Phone: 03 348 4403
Level 1, 11 Picton Avenue, Tower Junction, Riccarton
Christchurch 8011, New Zealand
  • Services
    • The Scrum >
      • Tax Returns
      • GST Returns
    • The Coach >
      • Cashflow Management
      • Business Planning
      • Financial Awareness
      • KPI Improvement Coaching
      • Monthly Coaching
      • Succession Planning
    • The Crowd >
      • Wills
      • Audit Shield Insurance
      • Xero Accounting
      • MYOB Accounting
      • Life Organiser
      • Trusts Review
      • Business by Design
    • The Tāne Service >
      • Kumara Service
      • Harakeke Service
      • Manuka Service
      • Pohutukawa Service
      • Kauri Service
      • Service Comparison
  • About
    • Team
    • Victory Stories
    • Frequently Asked Questions
  • OUR CLIENTS
    • Resources
    • Whutuporo Smart Plays
    • Bulletin Articles
    • Client Behaviour Policy
    • AML Policy
  • Sponsorships
  • Contact Us
  • Annual Checklists
    • Checklist Instructions
    • Checklist Links
    • Uploading and Viewing Documents