As a business owner, it’s important to know which expenses are tax deductible and which are not. We’re here to provide answers to some common questions.
Only uniforms or safety clothing are tax deductible. Any clothing that can be worn for other purposes is not eligible for tax deductions.
Vehicle expenses incurred during work-related travel are tax deductible. If the vehicle is exclusively used for work, you can deduct all costs. However, if it’s also used for personal purposes, only a portion can be claimed. Remember, daily commuting to and from work is not considered a business expense.
Entertainment expenses have different deductibility rules. Some are 100% deductible, while others are only 50% deductible. To understand the specifics, refer to the guide provided by the Inland Revenue Department (IRD).
When you have a home office, you can claim a portion of various household expenses, including rates, electricity, home and contents insurance, and rent or the interest portion of your mortgage payments. The amount you can claim depends on the proportion of your house used for business purposes. We can assist you with this calculation.
Payments made for work-related magazines, journals, or professional association memberships are all tax deductible.
If you have a dedicated business phone, its expenses are 100% deductible. However, if you use it for both work and personal activities, only a portion of the expenses can be claimed.
For tailored tax advice, turn to us.
You excel in your small business, and we specialize in helping you navigate tax compliance. We’ll address your tax-related inquiries, allowing you to focus on growing your business. Get in touch with us today – we’re eager to assist you!
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Address: Level 2, 182 Vivian Street,
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Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
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