Running a business comes with a steady stream of costs. But how many of those are you actually claiming back?
For many Kiwi business owners, the answer is: not enough. It’s easy to overlook everyday expenses like software subscriptions, internet costs, or ACC levies. On the flip side, trying to claim personal or ineligible expenses can land you in hot water with IRD. This guide outlines what you can safely claim, what to avoid, and how to make expense management a strength—not a stress point.
You can download our Business Expense Checklist !
What You Can Claim (And Often Forget To)
There’s a wide range of operating costs you’re likely eligible to claim, not just the big ones like rent or wages.
To be deductible, an expense must be directly related to earning business income. It doesn’t have to be large—just clearly for business use and well-documented.
Commonly claimable business expenses include
- Goods and materials you sell
- Accounting and advisory fees
- ACC levies
- Advertising, digital marketing, and websites
- Bank fees and merchant charges
- Freelancers and contractors
- Business-related software and subscriptions
- Depreciation on business assets
- Freight and delivery costs
- Health and safety supplies
- Business insurance
- Interest on business loans or overdrafts
- Legal fees under $10,000
- Licences, registrations, and memberships
- Office expenses like power, printing, stationery, tea and coffee
- Protective clothing
- Rent or lease payments for business premises
- Staff wages and salaries
- Training and development
- Domestic and international travel
- Some entertainment costs (subject to IRD rules)
What You Shouldn’t Claim
Claiming non-deductible expenses might seem harmless, but it can trigger penalties or audits from IRD.
Expenses that are partly personal, or don’t directly relate to earning income, generally aren’t claimable.
How to Stay On Top of It
Knowing what’s deductible is step one. Having a system to track it all is where the real value lies.
Simple ways to stay organised:
- Use digital accounting tools to record expenses in real time.
- Keep your business and personal spending completely separate
- Store all receipts and invoices securely for at least 7 years (IRD requirement)
- Ask questions early—don’t wait until year-end
- Review your expense claims regularly with your advisor
Use Tools That Do the Heavy Lifting
Make it Easier
Gone are the days of shoeboxes full of receipts. Digital tools can save you time and reduce errors.
Consider using:
- Hubdoc – Automatically fetches bills and receipts and pushes them into your accounting software with source documents attached.
- Xero or MYOB – Easily categorise and match expenses to transactions. Add receipts via photo or upload.
Integrating these tools helps you stay organised, compliant, and ready at tax time without the last-minute scramble.
Forward Thinking = Better Cashflow
The Payoff
Managing your expenses well isn’t just about staying compliant—it’s about clarity. Knowing your true costs puts you in control of cashflow, profitability, and planning.
Over time, small improvements in expense tracking lead to smarter decisions and stronger financial performance.
Let’s Make This Simple
At Calc, we help business owners get proactive about their numbers. From daily expenses to strategic planning, we’re here to support you with clarity and confidence.
Want to explore this further with your advisor? Let’s chat.
