Topic: Claimable Expenses - Kiwitax - Small Business & Rental Property Accountants

What is Depreciation & How Does it Work?

As a business owner or property investor you’re entitled to make a tax claim for depreciation – but what exactly is depreciation? It’s best described as the devaluation of your assets over a number of years and different assets have different life spans so that’s why the depreciation rates differ. An asset is defined as an item costing over $500 which will be used on an o... More

Topics: Income Tax Claimable Expenses Depreciation Accounting Business

Posted 23/07/2017

Increased IRD Mileage Rate

The IRD's mileage rate has been increased to 73 cents per km (up from 72 cents) effective for the 2017 financial year. This applies to both petrol & diesel fuel vehicles. The increase is largely due to higher average fuel costs and a slight increase in fixed vehicle costs during the 2017 Financial Year. For the first time, they have also set mileage rates for hybrid & electric cars. These... More

Topics: Claimable Expenses Rental Property Accounting Business Inland Revenue Vehicles Contractors

Posted 19/05/2017

100% Claimable Exercise Programmes

IRD have teamed up with the Exercise Association of New Zealand with an initiative called SMEAEP: Stress Management Exercise Association Endorsed Programme. The idea behind the initiative is that exercise and lifestyle changes play a huge role in managing stress levels in the workplace. If you are an employer, there is no FBT adjustments on SMEAEP endorsed programmes which you provide to your emp... More

Topics: Claimable Expenses Accounting Business Employing Links

Posted 20/03/2017

Travel To Your Rental Property & The 'Cost' Of Your Labour

For our Rental Property clients to make the most of their tax deductible mileage claims you need to keep a record of your rental-related travel. A trip to Mitre 10 to buy a new smoke alarm, followed by a 20km round trip to your rental property to install it - it all adds up. A simple hand written or spreadsheet log with dates and distances will do the trick. To help make this process a little eas... More

Topics: Claimable Expenses Rental Property Freebies

Posted 13/07/2016

Which Costs Are GST Exempt?

When preparing GST returns do note not all expenses have a GST component. Here's a quick list of the most common GST exempt outgoings... Bank Fees Interest Loan Fees Wages Drawings Credit Card Commission Non Deductible Entertainment Suppliers that are Not GST Registered Income Tax, GST Payments, PAYE Payments Inland Revenue Penalties Resident Withholding Tax on Interest Earned Incom... More

Topics: GST Claimable Expenses Record Keeping

Posted 22/10/2014

Can I Pay my Spouse / Partner Wages from My Business?

If you trade as a company there is no problem in paying your spouse or partner wages through the payroll of your business - however if you trade as a sole trader or partnership (that doesn't have your spouse / partner as an owner) you will need Inland Revenue approval to do this. If you don't get approval Inland Revenue can disallow any wage payments from being a tax deduction for your business. ... More

Topics: Claimable Expenses Employing PAYE Salary & Wages

Posted 21/10/2014 – Updated 22/12/2014

How to Maximise Your Entertainment Claims

To ensure you're making the best claims for your entertainment costs here's how to code them correctly. Entertainment expenses fall into two categories - either 100% or 50% claimable. If you are entertaining clients, suppliers, employees and only pay for yourself - the cost is 100% deductible If you are entertaining clients, suppliers, employees and pay for all people - the cost is 50% deducti... More

Topics: Claimable Expenses Record Keeping Entertainment

Posted 16/10/2014

Claiming Website Development Costs

There is a distinction between what is an asset and what is an expense when it comes to your business website. The costs of obtaining the domain name and the initial build of the website are an asset - so can't be claimed fully in the year that the costs were incurred. There is depreciation claimable on the website meaning the tax expense claims get spread out over a few years. Any on-going costs ... More

Topics: Claimable Expenses Depreciation Accounting Record Keeping

Posted 16/10/2014

Income Protection Insurance Deductibility

Many people have Income Protection insurance policies - these are claimable in your personal income tax return (whether you are in business or in paid employment) as long as any proceeds upon making a claim are treated as taxable income. Usually your insurance company will send out a letter after the end of each financial year detailing the amount you've paid on your premiums and the portion that... More

Topics: Income Tax Claimable Expenses Record Keeping Tax Returns

Posted 8/10/2014

Tips for Buying a Rental that Needs Maintenance

Often people buy a rental property that needs a bit of work done to it - they then get the keys and undertake repairs and maintenance that can cost a few thousand dollars. The property is then looking all good and they put it to the market to find a tenant. In this instance all of the costs to repair the property will be capitalised - added to the purchase price of the property - no tax claims av... More

Topics: Claimable Expenses Rental Property Depreciation Record Keeping

Posted 1/10/2014 – Updated 7/10/2014

Claiming for Using Your Home as an Office

When running a business from your home you are entitled to make a claim for the costs associated with this. Inland Revenue require you to determine the office area as a percentage of your whole home for these claims. To work this out you need to create a plan of your house (if you haven't one already) to calculate how many square metres it is in total - then work out the total square metres used ... More

Topics: Claimable Expenses Business Record Keeping Tax Returns

Posted 30/09/2014

Claiming on Meetings at Cafes & Restaurants

Sometimes you might take employees, clients or prospective clients out for breakfast, lunch, dinner or a coffee and muffin to discuss work related matters and pay for it all. IRD allow you to claim 50% of these costs as an entertainment expense. If you are GST registered you can only claim 50% of the total cost for GST and also 50% for your annual accounts and income tax. As good record keeping p... More

Topics: Claimable Expenses Record Keeping Employing Entertainment

Posted 26/09/2014 – Updated 16/10/2014

Getting a New Loan in Your Company?

A tax area Inland Revenue are focusing on relates to interest claims on company loans. If you are taking out a new loan or hire purchase – where possible get the agreement in the company name. If this isn’t possible and can only be done in your personal name, let us know as soon as you have the paperwork and we will prepare some minutes and resolutions (small cost of $60 + GST) to decl... More

Topics: Claimable Expenses Loans

Posted 15/04/2014

Claiming Christmas Expenses

It's always good to be aware of what's claimable, here's a quick list of expenses you can claim for Christmas parties and gifts. Please note some expenses are 100% deductible while others are only 50% deductible. Staff Christmas Party The costs of food & drink and any incidental expenditure relating to things like hireage of crockery, glassware, music or other entertainment is only 50% deduc... More

Topics: Claimable Expenses PAYE FBT Gifts

Posted 18/11/2013

Ensuring Continuity of Rental Property Expense Claims

If your rental property is untenanted and you're taking the opportunity to do some repairs and maintenance do ensure the property remains available to rent during this period. Perhaps have a sign up and/or keep advertising alive. This helps ensure you can continue to claim expenses during the untenanted period. If buying a rental property ensure it's available for rent before launching into any... More

Topics: Claimable Expenses Rental Property Tax Compliance Guides

Posted 16/09/2013