𝗛𝗮𝘃𝗲 𝗬𝗼𝘂 𝗘𝘃𝗲𝗿 𝗣𝘂𝘁 𝗮 𝗟𝗲𝘁𝘁𝗲𝗿 𝗳𝗿𝗼𝗺 𝗜𝗥𝗗 𝘁𝗼 𝗢𝗻𝗲 𝗦𝗶𝗱𝗲?

We've all done it. A letter arrives, it looks official and a bit intimidating, and it goes in the pile to deal with later.

But when that letter is from IRD about a missed GST return, later can be expensive.

Here's how it works.

𝗧𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝘁𝗶𝗺𝗲 𝘆𝗼𝘂'𝗿𝗲 𝗹𝗮𝘁𝗲
IRD is actually quite reasonable. The first time you miss a GST filing, they send a warning rather than an immediate penalty. Many business owners think they're off the hook. In reality, it's a warning that the next missed return could trigger penalties.

𝗧𝗵𝗲 𝘀𝗲𝗰𝗼𝗻𝗱 𝘁𝗶𝗺𝗲 𝘆𝗼𝘂'𝗿𝗲 𝗹𝗮𝘁𝗲
If you miss again within 12 months, the late filing penalty kicks in, $50 if you're on the payments basis or $250 if you're on the invoice or hybrid basis. That's before late payment penalties and use-of-money interest are added on top, and those keep running until everything is paid.

𝗖𝗼𝗺𝗺𝗼𝗻 𝗺𝗶𝘀𝘁𝗮𝗸𝗲
Filing your GST return in Xero is not the same as filing it with IRD. Your return isn't lodged until it's submitted through myIR or by your bookkeeper. I see this catch people out more often than you'd think.

The good news is IRD does work with people who communicate early. If you know you're going to be late, getting in touch with them before the deadline is always better than going silent.

Not sure whether your GST returns have been lodged correctly? Send us a message and we'll help you check before penalties become a problem.