practice tax


18th January, 2021

End of E-File: Prepare your practice the easy way

It’s been coming for a while, but the E-File system goes offline in April 2021, making now the ideal time for tax agents to make the switch.

The online service that has been allowing tax agents to help manage their clients accounts and communicate with Inland Revenue (IR) has been set to decommissioned for the past three years — now E-File’s final date is upon us.

What’s happening to E-File?

According to the IR webpage: ‘E-File will be decommissioned on 16 April 2021. This change impacts tax agents who currently use E-File.’

‘Returns can be filed through E-File up until 16 April 2021, but we’ll be encouraging tax agents that use E-File to file their clients’ tax returns before 31 March 2021.’

So what happens from 16 April onwards? E-File is being replaced by new features appearing within the offerings of specialist service providers, such as MYOB.

What’s driving these changes to the way we file tax?

As industries continue to digitise, the way data is shared between businesses and the Government also continues to shift.

“The way Kiwis are doing business continues to evolve — it’s the same with IR,” said Toby Davis, GTM Manager at MYOB.

“The IR’s Business Transformation Program started back in 2017. It’s a multi-year program to digitise their operations and improve the way they interact with taxpayers.”

As a program of modernisation, the transition of E-File makes sense, as it reduces friction in the way data is shared between individuals, businesses, software providers and the Government.

“This will make it so much easier to pay your tax and receive your entitlements,” said Davis.

“With IR’s move to their new Gateway Services, we’ve been working closely with IR to test and transform our accounting software to ensure our partner practices are ready and remain compliant.”

As a result, MYOB was the first software provider to help our partners lodge tax returns via the new Gateway, back in July.

MYOB Practice Tax: The easiest, quickest option for filing tax

As the April deadline looms, practices dealing with clients’ taxes will need to make certain they’re running with the right tech product for their needs.

For example, practices currently using desktop-based tax software won’t be able to calculate or file tax returns for the 2021 year in that system.

“This means tax agents will be calculating tax manually before filing returns via my.IR from 16 April 2021,” said MYOB’s Jo Silvester, Sales Manager.

“If you’re in this situation, you will no longer have visibility over your clients’ tax, payments and all the efficiencies that come with a contemporary practice tax solution.”

For practices using an MYOB desktop-based product like Accountants Edge or Accountants Office, there’s a simple, self-serve process designed to connect you to MYOB Practice Tax with minimum disruption to your business operations (and those of your clients).

“You can prepare and file 2020 tax returns in MYOB Practice Tax from the moment you upgrade, and that’s why it’s the easiest and quickest way to file tax.”

Other benefits of MYOB Practice Tax:

  • Reconcile multiple transactions, reducing the cost to service your clients
  • Attach documents to IR or MYOB transactions and easily view source documents from the same location
  • Calculate provisional and terminal tax at any stage whether it’s not started, draft or approved, with fast and efficient validation throughout preparation
  • Send tax return information and notices directly to your clients via MYOB Portal, which incorporates digital signature technology secured by two-factor authentication

Want to find out how your practice can get ahead of next year’s changes? Discover more about MYOB Practice Tax today and take your first step towards success in 2021.