As a business owner, which expenses are tax deductible and which are not? We help answer some of your questions.

Is the cost of my work clothes tax deductible?

Only if it’s a uniform or safety clothing. Anything you buy that could potentially be worn for other purposes is not tax deductible.

What about my car expenses?

Vehicle expenses when you travel for work are tax deductible. If the vehicle is purely used for work, you can deduct all the costs, otherwise, you can only claim a portion. Remember that travelling to and from work every day is not a business expense.

Can meals be tax deductible if I’m on a trip or shouting clients?

There are three types of entertainment expenses – some are 100% deductible, and some are only 50% deductible. This can be a bit confusing, so IRD has a guide to help you work out how much you can claim.

If I work from home, what can I claim?

When you have a home office, you can claim a portion of all your household expenses, including:

  • Rates
  • Electricity
  • Home and contents insurance
  • Rent, or the interest portion of your mortgage repayments.

The amount you can claim varies depending on how much of the house you use for your business. Our team of experienced Business Advisors can help you work this out.

What about subscriptions?

Payments for work-related magazines, journals, or professional association memberships are all tax deductible.

Can I claim my mobile phone?

If you have a dedicated business phone, it’s 100% deductible. If you’re using it for both work and non-work activities, it will be partially deductible.

Need tax advice that’s tailored to you?

You’re an expert at your small business, and we’re the experts when it comes to helping you with tax compliance. We’ll help you sort out your tax questions so you can get on with growing your business. Get in touch, we’d love to hear from you!

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