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.
Watch our short video on claiming business expenses
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. Read the Commissioner's reviews of mileage rates.
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.
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.
Many people who run a small business use an area in the family home for work purposes. If you are doing this, you may be able to make a claim for the area used. Learn about the costs you can claim when using part of your home for business use and how it can help you.
Your holiday home may be covered by the mixed-use assets rules that determine what income and expenditure is returned.
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.
A capital contribution is a payment to a person that compensates them for certain capital expenditure. If you receive a capital contribution, learn how to treat the receipt for income tax purposes.
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.
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