WHAT’S THE PROCESS FOR MY TAX RETURNS?

What’s the process for my tax returns? We thought it might be helpful to step you through how it works — that is, the bit we do.

30-Second Read

• Send us your info, and we handle the rest — invoicing, coding, compiling financial statements, and filing with IRD.
• We aim for around 6 weeks from invoice to draft financial statements, though 8–9 weeks is common during peak season (May–October).
• Most jobs are invoiced in two halves — 50% up front, 50% partway through — unless it’s a small job billed 100% up front.
• Most clients have an extension of time, so this timeframe comfortably fits before the filing deadline.
• You review and sign off on draft financials and tax returns before anything gets filed with IRD.

Simplified Version

Here are the main steps involved, and an approx. % showing how far through we are at each point. The chart starts at the bottom, and the top is 100%, tax returns filed and assessed by IRD(opens in new tab)!

Detailed Version

Here is a detailed description of each part of the process.

1. First, we email you a link to the online tax questionnaire. We ask you to complete this within 7 days of receipt.
2. We send you an invoice via Xero.com for 50% of the job. (Some small jobs are billed 100% up front.)
3. We’ll then send you a copy of your completed questionnaire, along with further instructions.
4. You then either email your info to mytaxinfo@epsomtax.com or send it via courier.
5. Once we receive your info, we scan it straight away. The physical originals get couriered back to you later, once your tax returns are filed.
6. By now, it’s somewhere between the 1st and the 7th of the month. You’ve sent us all of your info, and we copy this to secure online storage.
7. We start coding your info up to trial balance(opens in new tab) stage. The second 50% invoice is issued, usually a 14-day account.
8. Financial statements are compiled.
9. A checker reviews the draft financial statements and any adjustments made.
10. Tax returns are prepared.
11. Drafts of both financials and tax returns are then sent to you for review (see how to understand your financial statements).
12. If you’re happy, you sign them. If adjustments are needed, we make them first.
13. Adjustments are made (if needed) after your review, then the amended copies are signed by you.
14. Tax returns are queued to be filed online with Inland Revenue, and checked again by the filing and checking team.
15. IRD processes the returns. (Here’s how to create a myIR account and check progress.)
16. We process the donation tax credit forms.

Timeframes

As a rough guide, from the date of invoice issuance to you having the draft financial statements in your hands, we aim for 6 weeks, subject to this disclaimer: these timeframes are indicative only, and at peak times of the year — e.g. May to October — it will often take longer, like 8–9 weeks.

This gives ample time, as you very likely have an extension of time to file your tax return. For more info, see this article.

Before Processing Starts

• 2–3 weeks before – tax questionnaires sent out via email
• 1–2 weeks before – 1st invoice sent out via email

Processing Month

We’ll advise you in February or March via email when this is.

• 1st of the month – all data should be provided by you by this date; processing starts
• 3–4 weeks later – work completed to draft stage; second invoice issued
• 7 working days later – 2nd invoice paid, draft financial statements sent to you for review
• 7 working days later – changes made as required, confirmation received from you to file with IRD
• 1–2 weeks later – tax returns filed
• 1–12 weeks later – IRD processes returns

Don’t leave your tax obligations to chance

Missing information, overlooked deductions, and late filings can cost you money. At EpsomTax.com, we make the tax return process straightforward and help ensure you claim everything you’re entitled to. Get in touch today to clarify any of the above or for a no-obligation discussion about your tax and accounting requirements.

Other FAQs You Might Have

• Rental Property: What Records Do You Need to Keep?
• How Do I Download Transactions from My Bank’s Online Internet Banking?
• What Is Xero.com?
• Common Questions About Your Tax Returns
• Common Questions About Your Financial Statements