A cost of living payment has been introduced. The main points are:
- There is no application process. Inland Revenue will automatically make the payments into the taxpayer’s bank account.
- The taxpayer must have a bank account.
- It applies to almost everybody whose income is less than $70,000.
- To qualify, the individual will need to have lodged an IR3 tax return or have received their individual income tax assessment from the Inland Revenue.
- Individuals who qualify and lodge their tax returns later in the year will still be able to get the money. However, there is a deadline of 31 March 2023. Clients who are habitually late giving us the information to do their accounts run the risk of not being able to lodge their tax return on time. Inland Revenue says: “If a return is filed on, or after 1 April 2023, your client will miss out on this payment.”
- The cost of living payment doesn’t go to people who are in jail or those who get the winter energy payment.
- Payments will be made in three monthly instalments starting from 1 August 2022.
- Minimum qualifying age is 18. Inland Revenue says: “You will get the payment if on the day we check for eligibility we confirm you . . . are aged 18 or older.” We therefore conclude if you become 18 any time during the current financial year to 31 March 2023, you should get Inland Revenue to check your eligibility as soon as you reach your birthday, if you think you will qualify.