Rules may change for boarders

Under existing rules, anyone with one boarder is not required to return their income. Those with two to four boarders pay tax at a rate of 20 per cent, while those with more than four boarders claim in the normal way for businesses.

Inland Revenue is seeking feedback on a proposal to base tax liability on the amount of income people receive rather than the number of boarders.

The proposed change also sets out a series of standard costs that people can use when claiming tax deductible expenses to off-set against their income and make filing returns easier.

IRD service delivery deputy commissioner Naomi Ferguson said the changes would correct the anomaly where somebody could have a similar income to a small business, yet not have to file a tax return.

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