Understanding Business Expenses in New Zealand: What You Can Claim

June 19, 2025

According to the Inland Revenue Department (IRD), business expenses are the costs you incur to earn income. These must be directly related to your business operations and not of a private or capital nature.

Common Claimable Expenses

Here are some everyday business expenses you may be able to claim:

Office supplies
- pens, paper, postage, and printer ink.
Vehicle costs
- fuel, maintenance, and insurance (if the vehicle is used for business).
Travel
- airfares, accommodation, and meals when travelling for business.
Rent and utilities
- for business premises.
Depreciation
- on business assets such as laptops or tools.
Marketing
- advertising, website hosting, and promotional materials.
Professional services
- like legal or accounting advice.
Salaries and wages
- including your KiwiSaver contributions.

Note: Be Careful with Mixed-Use Expenses

Some items, like a car or home office, may be used for both personal and business purposes. In these cases, you can only claim the business-use portion. Keeping good records is essential to prove your calculations.

✅ You Can Claim	❌ You Can’t Claim
Business travel costs (flights, hotels)	Personal holidays
Laptop or desktop for work	New TV or sound system for home
Office rent or coworking space	Mortgage on private home
Mobile phone (business portion)	Family mobile plans
Internet for home office (business-use %)	Streaming subscriptions (e.g., Netflix)
Accounting and legal fees	Legal fees for personal matters
Marketing and advertising (digital/print)	Personal gifts or donations
Software subscriptions (e.g., Xero, Canva)	Video games or non-business software
Tools and equipment used for work	Household tools and appliances
Training courses directly related to work	Courses for hobbies or unrelated fields
Vehicle expenses (business use %)	Private car fuel for non-business use

Unsure What You Can or Can’t Claim?

If you’re ever in doubt about whether something qualifies as a deductible business expense, it’s best to check directly with Inland Revenue. They provide clear, updated guidance:

Source: IRD – Types of business income

Disclaimer: For the most current tax rates and other information, please visit the official Inland Revenue (IRD) website. (Blog Last updated: June 2025)

Learn more

To learn more about business taxes, including taxable income, rates, deductions, GST, and filing requirements, visit the IRD website.

Need Help With Tax and Accounting?

DAD Accountant offers expert tax and accounting services for Kiwi businesses. Whether you’re starting out or growing fast, they’ll help you stay on track.

Get in touch with DAD Accountant today for support you can count on.

June 19, 2025