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COVID-19 - Level 4 Inland Revenue will continue to provide services throughout the COVID-19 response, including paying Working for Families. Please use our online services as phone contact is severely limited. Find out more >

Who can use it

Anyone can use the actual cost method.

You must use it if you have 5 or more boarders or home-stay students at any time during the income year.

How it works

To use the actual cost method you need to:

  • keep full records of your actual income
  • keep full records of your expenses
  • complete an IR3 annual tax return to return income and claim actual expenditure incurred.