Tax codes

Employees must provide a valid code, so that tax is deducted at the correct rate. Employees must complete an IR330 - Tax code declaration form as soon as they start working at your school, or if their tax details change.

If your employee does not provide a valid tax code on the IR330, the Novopay Service Centre are required to deduct tax at the no-notification rate. See Using no-notification tax rates (Inland Revenue website).

Secondary tax code

An employee will provide a secondary code for secondary employment if their primary job (their main income) is not in State education and their secondary job is at your school.

An employee should not use a secondary code if they are already paid by the Education Service Payroll, either in one school or a number of schools. This is because the Education Service Payroll pays tax from all accumulated education income.

Tax code declaration for new employee

Change tax code

  • Ask the employee to complete an IR330 - Tax code declaration form.
  • Transfer the tax details to the NOVO4 form.
  • Send the form to the Novopay Service Centre.

Special tax codes

A special tax code is a code provided by Inland Revenue for an employee's specific circumstances. It takes effect from either 1 April, or the date that Inland Revenue approves it (if it begins after the start of the tax year). Special tax codes end 31 March, at the end of the tax year. See the special tax code guide (Inland Revenue website).

An employee on a special tax code must renew it each tax year, and provide a copy of the IR23 - Special Tax Code or Deduction Rate Certificate to their employer. If they do not do this, they will be placed on the no-notification rate until a new tax code is received. When you receive the IR23 from the employee, do the following:

Record keeping

Keep the following forms in the employee's file:

  • Signed original of the NOVO1 or NOVO4 form
  • Original IR330 tax declaration form
  • IR23 - Special Tax Code or Deduction Rate Certificate, if applicable.

See Payroll record keeping for more details.

Forms

See NOVO forms to download NOVO forms, and for guidance on completing forms.

Related links

Inland Revenue website: