End of Financial Year Checklist - New Zealand

📊 Expenses, Tax Codes, and Records

Reviewing Expense Records

For Contractors and Business Owners:

• Business expenses: All receipts for deductible expenses
• Equipment purchases: Computer, tools, vehicles used for work
• Home office costs: Portion of rent, power, internet
• Professional fees: Accountant, lawyer, other professionals
• Subscriptions and memberships: Professional organisations, software
• Vehicle expenses: If claiming vehicle costs, mileage log and receipts
• GST paid: If registered, GST paid on business expenses

Why This Matters:

Proper expense records maximise legitimate deductions, reduce taxable income, and defend claims if IRD queries. Missing receipts mean lost deductions and higher tax.

Contractor vs Employee Differences

Employees:

• PAYE automatically deducted from wages
• Usually no tax return required (IRD reconciles automatically)
• May receive tax refund or small bill depending on year's income
• Limited expense deductions (usually none)
• Year-end mostly passive - IRD handles reconciliation

Contractors and Self-Employed:

• Must file tax return - not automatic
• Calculate income tax owed on year's earnings
• May owe significant tax if provisional tax not paid during year
• Can claim business expense deductions
• Active year-end process - must gather records and file return
• Deadlines for filing and payment must be met

Checking Tax Codes

Verify tax codes are still correct for your current circumstances.

Review Your Code If:

• Started or stopped second job during year
• Got or paid off student loan
• Income changed significantly
• Employment situation changed
• Using secondary code but now only have one job
• Both jobs using M code (wrong - should be secondary code for one)

Where to Check:

• Recent payslip shows current tax code
• myIR account shows codes registered with IRD
• Ask employer what code they have on file

Organising Documents

Essential Documents to Organise:

• Income records: Payslips, invoices, bank statements
• Expense receipts: All business-related spending
• KiwiSaver statements: Annual contribution and balance statements
• Student loan records: Deductions made during year
• ACC levy information: Amount paid during year
• Investment statements: Dividends, interest, gains/losses
• Property records: If own investment property, all income and expenses
• Charitable donations: Receipts for donations if claiming

Storage and Access:

• Keep physical copies or scanned digital versions
• Organise by category and date
• Retain for required period (generally seven years)
• Make accessible if needed for tax return or IRD query

💰 KiwiSaver, Insurance, and IRD Updates

KiwiSaver and Investment Review

Check Contributions:

• Verify your contributions throughout year
• Confirm employer contributions received
• Check government contributions if eligible
• Ensure contribution rate still appropriate for your situation

Review Performance:

• Check annual returns from your KiwiSaver provider
• Assess fund performance relative to goals and expectations
• Review fund type - still appropriate for your risk tolerance and timeline?
• Consider whether to change funds or providers if performance poor

Plan Ahead:

• Consider increasing contribution rate for new year
• Review retirement timeline and savings target
• Make any provider or fund changes before new year starts

Student Loan and ACC Awareness

Student Loan Check:

• Review total deductions made during year
• Check current outstanding balance
• Verify deductions were correct percentage
• If paid off during year, ensure SL removed from tax code
• If got loan during year, ensure SL added to tax code

ACC Levy Review:

• Understand ACC levies paid during year (shown on payslips)
• For self-employed, check ACC invoice and payment status
• Verify levy based on correct income classification

Reviewing Insurance

Year-end is natural time to review insurance coverage.

What to Review:

• Life insurance: Still adequate for dependents' needs?
• Income protection: Coverage amount still appropriate?
• Health insurance: Cover meeting needs? Better options available?
• Home and contents: Sum insured reflects current values?
• Vehicle insurance: Cover appropriate for vehicle value?

Common Year-End Adjustments:

• Increase life insurance as income or dependents grow
• Update contents insurance for new purchases during year
• Adjust home insurance for renovations or improvements
• Shop around for better rates or coverage

Updating Contact Details with IRD

Ensure IRD has current information to avoid missed communications.

What to Update:

• Address: If moved during year
• Phone number: If changed contact number
• Email: If changed email address
• Bank account: For refunds or direct credit

Why This Matters:

Outdated contact details mean you miss important IRD correspondence about tax assessments, refunds, or obligations. Can lead to missed deadlines or unclaimed refunds.

How to Update:

• Login to myIR account
• Update personal details section
• Verify changes confirmed

🎯 Planning Ahead and Emotional Reset

Planning for the New Financial Year

Financial Goals:

• Set savings targets for new year
• Debt reduction goals if carrying debt
• Investment or KiwiSaver contribution increases
• Major purchases planned (need to budget for)

Income Planning:

• Expected pay rises or income changes
• Planned career moves or job changes
• Additional income sources to pursue
• Tax implications of income changes

Expense Planning:

• Expected major expenses in new year
• Insurance renewals coming up
• Planned lifestyle changes affecting budget
• Ways to reduce discretionary spending

For Contractors:

• Provisional tax obligations for new year
• Setting aside money for tax throughout year
• Business investments or equipment purchases planned
• Pricing or rate changes for new year

Emotional Reset and Reflection

Year-end is opportunity for emotional and psychological financial reset.

Reflect on Progress:

• What financial goals did you achieve this year?
• What challenges did you overcome?
• What did you learn about your money habits?
• How has your financial position changed?

Acknowledge Struggles:

• Financial stress experienced during year
• Goals not achieved (without self-judgment)
• Unexpected setbacks that derailed plans
• Difficult financial decisions made

Release and Move Forward:

• Let go of guilt over past financial mistakes
• Release shame about not achieving all goals
• Accept that new year is fresh start
• Forgive yourself for imperfect financial decisions

Set Intentions:

• What financial habits to develop in new year?
• What old patterns to break?
• How to reduce financial stress?
• What would financial success look like next year?

Avoiding Last-Minute Stress

Proactive preparation prevents panic and problems.

Start Early:

• Begin checklist weeks before year-end, not days
• Gather documents progressively
• Address issues as discovered, don't postpone
• Book accountant or tax agent early if needed

Break into Steps:

• Don't try to complete entire checklist in one day
• Tackle one section at a time
• Tick off items as completed
• Build momentum through small wins

Seek Help When Needed:

• Don't struggle alone if confused
• Accountant can handle complex situations
• Tax agent provides expertise and peace of mind
• Professional help costs less than mistakes or penalties

Create Systems:

• Set up ongoing record-keeping for next year
• Create folders or files for different document types
• Schedule regular financial check-ins throughout year
• Don't let organisation lapse after year-end

Final insight: End of financial year is crucial checkpoint requiring structured approach. Review all income records (payslips, invoices, bank statements), expense records (receipts, business costs), verify tax codes still correct, assess KiwiSaver contributions and performance, confirm student loan and ACC deductions, organise documents for retention and tax purposes, update IRD contact details, review insurance coverage, and plan financially for new year. Contractors and self-employed have active obligations (must file returns) while employees usually passive (automatic reconciliation). Use year-end as emotional reset - reflect on progress, acknowledge struggles without judgment, release guilt and shame, set fresh intentions. Avoid last-minute panic by starting checklist weeks early, breaking into manageable steps, seeking professional help when needed, and creating ongoing systems. Proactive year-end preparation prevents problems, ensures compliance, identifies opportunities, and positions you strongly for successful new financial year. The stress of year-end reduced dramatically through methodical, early action rather than reactive scrambling at deadline.