If you have income which is taxed before you get paid, such as a salary or wages, schedular payments (withholding tax) or bank interest, you can automatically sync this income directly from IRD. You do not need to categorise any bank transactions for income sources which are shown in your IRD feed.
When your employer pays tax on your behalf throughout the year, IRD records how much income you were paid and how much tax was paid on your behalf. Connecting your IRD account with Solo enables Solo to retrieve your income summary and automatically calculate the correct amount of income tax, GST and ACC you need to pay on your self-employed income.
Note: No financial information is sent to the IRD from Solo at any time. Solo only retrieves your income summary data in order to accurately calculate your taxes.
How to connect your IRD account
Click the OK, let's go button.
Enter your myIR login details.
Enter your IRD number. Many people have multiple IRD numbers associated with their IRD account so IRD requires an IRD number to be entered in order to link the correct income data.
Click the Continue button.
That's it! Your income summary for the last 3 years will be synced from IRD and displayed in Solo. All of Solo's calculations will be automatically updated to include the synced data. Your IRD feed will be automatically updated daily.
Note: It may take a few minutes for your income data to appear in Solo when you first connect your IRD account.
Supported income types:
Salary and Wages (SALWAGE)
Schedular payments (WT)
NZ Interest (NZINT)
Benefits (INCBEN)
New Zealand Superannuation or veteran’s pension (PENSION)
Student allowance (SLSALL)
Note: You do not need to categorise any income transactions for the income sources listed above. E.g. when the schedular payment income is paid into your bank account simply leave the bank transaction as uncategorised.
How is my IRD income included in Solo?
The main reason to sync your income from IRD is so that Solo can calculate your current total income. Your total income, and the amount of tax you have already paid, are then used to accurately calculate your current taxes. Specific calculation are applied to each income type to ensure that Solo is completely accurate with IRD's tax calculations. Solo includes your IRD income sources and deductions when calculating the following:
Total income amount
Income tax calculations
Provisional tax calculations
GST calculations
ACC calculation
IR3 tax return
IR10 Financial statements summary
Exported data
Do I need to connect my IRD account?
Many sole-traders have multiple income sources, even if it's just earning some bank interest on their rainy day fund. Connecting your IRD account means Solo's tax calculations are as accurate as possible. Here are some common examples where connecting your IRD account is essential:
Contractors – If you earn income from schedular payments (also known as withholding tax payments) Solo makes it super easy to track your income. All you need to do is connect your IRD account and Solo will automatically calculate your income tax, GST, ACC and generate your tax returns. You don't need to know your withholding tax rate and it doesn't matter if you have multiple sources of contract income. If you also have self-employed income you can categorise this income from your bank transactions and Solo will combine it with your schedular payment income. You do not need to categorise any transactions for your schedular payment income.
Rental property owners – Rental property owners often have salary or wages as their primary income source and rental income as their secondary income source. In order to accurate calculate rental income tax, the salary or wage income first needs to be taken into consideration.
Side hustlers – If you have a day job but are also earning self-employed income on the side then connecting your IRD account is a must. This is because the income from your day job needs to be taken into consideration when calculating the tax on your self-employed income. Connecting your IRD account with Solo will ensure that all your income sources are combined and your tax is accurately calculated.
Students – If you're receiving student allowance payments from the government, then Solo needs to take into consideration your student allowance income when calculating the tax on your self-employed income.
Pensioners – If you're receiving New Zealand Superannuation payments from the government, then Solo also needs to take into consideration your pension income when calculating the tax on your self-employed income.
How do I disconnect my IRD account?
You can disconnect your IRD account at any time by clicking the red 'Remove' link that is shown next to your IRD number on the IRD Connection page. This will remove your IRD account and any associated data from Solo. IRD income will also be removed from Solo's tax calculations. You can then reconnect your account at any time.