Claiming business expenses
Most businesses incur expenses when generating income and most of these can be deducted from its income to arrive at its net profit or taxable income. It is on this amount that you pay income tax. Certain business expenses that are paid for out of business income cannot be claimed as allowable business expenses.
Mileage rate
If you're an employer you can calculate an employee's reimbursement when they use their private vehicle for work purposes. If you're self-employed you can use our mileage rate to calculate the cost of using your motor vehicle for business purposes. Employers may also use rates published by a reputable independent New Zealand source to reimburse their staff.
Using your own vehicle in the business
If you are a sole trader or in a partnership and you use your own vehicle in the business, you can claim the running costs for income tax. Learn about the types of situations where vehicle expenses may be claimed as an expense.
Travel expenses
If you spend time travelling as part of your business you can claim business travel as an expense. Learn the travel costs which you can claim as business expenses.
Using your home for the business
Many people who run a small business use an area set aside in the family home for work purposes. If you are doing this, you may be able to make a claim for the area set aside. Learn about the costs you can claim when using part of your home for business use and how it can help you.
Entertainment expenses
If you provide entertainment for staff or clients, some of these business entertainment expenses are tax deductible. Learn how to expense business entertainment expenses which can be claimed back and how it applies to you.
Environmental expenditure
Changes have been made to ensure that all business operating costs, including those for dealing with environmental issue, are taken into consideration in calculating taxable income, and that the timing of such deductions is appropriate.
Tracking expenses
Learn which of the main business expenses that may be claimed against income tax, provided sufficient records are kept during the tax year
Date published: 14 Oct 2004
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