How to claim expenses as a small business

“Q: What expenses can I claim as a Kiwi small business? And what’s the financial advantage of claiming for business expenses?”

When you’re running a small business, there’s a multitude of operational costs and business expenses that you’ll incur in the everyday running of the company. But which of these costs are classed as business costs and are therefore tax-deductible at year-end?

“A: The short answer is that you can claim for any expenses which are wholly related to the day-to-day running of your business”

By claiming these expenses against tax, you can directly reduce your overall tax liability – and that means a smaller tax bill at year-end.

As the owner of the business, you can claim for:

• Vehicle expenses, transport costs and travel for business purposes
• Rent paid on business premises
• Depreciation on items like computers and office furniture
• Interest on borrowing money for the business
• Some insurance premiums
• Work-related journals and magazines
• Membership of professional associations
• Home office expenses
• Work-related mobile phones and phone bills
• Stationery
• Work uniforms
• Tax agent’s fees

Helping you claim all eligible business expenses

There’s more information about claiming expenses on the business.govt.nz website.

If you’re unsure what you can and can’t claim, come and talk to our team. We’ll be happy to run you through the eligible expenses and how you claim them against tax.