The clock is ticking. Inland Revenue’s pilot scheme – which lets taxpayers use a tax pool to settle 2023 and 2024 income tax debt – closes to new applications on 1 October 2026. Here’s what we’re seeing on the ground, and how to act before the window closes.
How the pilot works
Inland Revenue opened this scheme in March 2026. Taxpayers have until 1 October 2026 to apply, and until 1 October 2027 to pay. To qualify, a client must:
- be up to date with their tax returns
- not be under insolvency action from Inland Revenue
- have no other tax debt, unless it’s covered by a payment plan with Inland Revenue.
What we’re seeing so far
- nearly all applications have been lodged by tax advisors on behalf of their clients
- applications for 2024 debt are running at twice the value of 2023 debt
- median debt values are $14,000 (2023 year) and $15,200 (2024 year)
- amounts range from $768 to over $220,000
- Inland Revenue is approving most applications – the main reason for decline is outstanding returns.
Good to know: if outstanding returns are the blocker, clients can still file by end of September and reapply.
Three types of clients to look for
1. The easy wins
Clients who haven’t settled their 2023 or 2024 income tax and want a clean path forward. The pilot lets them clear debt without going through Inland Revenue’s debt team – and they save money through eliminated late payment penalties and a lower interest rate. A straightforward win for them, and a quick action for you.
2. The ones who need a hard conversation
A debt report will surface clients whose position is beyond recovery. If Inland Revenue hasn’t acted yet, it likely will. This is useful intelligence – it tells you where a more urgent conversation is needed.
3. The manageable cases – your main opportunity
The bulk of eligible clients: businesses that have fallen behind and need a structured way out. We enrol them in the pilot, set up a repayment plan through TMNZ, and your involvement stays minimal. They deal with our team – not Inland Revenue’s debt collectors.
Why it matters
Half of the taxpayers we’ve enrolled owe less than $15,000. For SMEs carrying that burden, clearing it through this scheme frees them up to focus on what’s ahead. Six weeks isn’t long, but it’s enough time to make a real difference for the right clients.
How to move quickly
If you have Inland Revenue integration enabled, you can request a report of all your clients with 2023 and 2024 income tax debt. The report gives you an instant view of who’s eligible. From there, TMNZ files the applications and sets up the pooling arrangements for approved clients. Accounts using this service tell us the lift on their end is light.
Haven’t requested your report yet? Book a call with us to get started. We can also help you enable Inland Revenue integration if you haven’t set that up.
Or visit our tax debt resource hub for more information including FAQ’s and how to apply.
The post Three weeks left: help your clients clear historic tax debt through the Inland Revenue pilot appeared first on TMNZ.
