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Tax Saving Business Tax Deduction Small BusinessTax Home Office Expenses Square Metre Rate IRD Actual Home Office Expenses Vehicle Use Tax Deduction Claim Car Expenses for Business IRD Kilometre Rate NZ Training and Professional Development Deduction Industry memberships Sole Trader Tax

 

3 Deductions that you don’t know that you can take towards your tax bill

1. Home Office Expenses (Square Metre Rate or Actual Costs)

  • If you run your business from home, you can claim a portion of your household costs.

  • Options:

    • Square Metre Rate Method: Use IRD’s published rate (e.g., 2025 rate is $63.68 per square metre).

    • Actual Costs Method: Claim a share of rent/mortgage interest, power, internet, insurance, and rates based on business floor area.

  • Many business owners underclaim this because they only think of “rent,” but utilities and even a portion of home insurance can count.

2. Vehicle Use, Even Without a Company Car

  •  You don’t need a company-owned vehicle to claim expenses.

  • If you use your personal car for business (client visits, banking, supplies), you can claim either:

    • IRD kilometre rate (covers fuel, depreciation, maintenance).

    • Or actual expenses based on business vs personal use.

•    A lot of sole traders forget this deduction if they haven’t formally set up a company car.

3. Training, Subscriptions, and Professional Development

  • Courses, webinars, and even some certifications related to your trade are deductible.

  • Industry memberships (e.g., NZ Medical Association, CAANZ, trade associations).

  • Subscriptions to professional journals, apps, or software that help you run the business (even Spotify in some cases, if used commercially in a clinic/salon/office).

  • Many owners miss this because they see it as “personal growth”, but if it directly relates to your business income, it’s deductible.

New Zealand Tax Accountant.