Work from home? Make sure you claim these expenses

If you use your home for business — whether you’re a contractor, sole trader, in partnership or own a company — you can claim a portion of household expenses.

You can claim 100% of expenses that are solely for business purposes eg a business phone line or magazine subscription.

For the rest, you can claim the proportion of your house that you use for work. For example if the house is 100 square metres and the office 10 square metres — 10% of the total area. So the owner can claim 10% of expenses not solely for business, eg a power bill. Note that you can use multiple parts of a house, eg a garage, and an office, which all adds toward the claimable percentage.

For a helpful guide navigate to the business.govt.nz website below, or view the infographic from this post

https://www.business.govt.nz/tax-and-accounting/reducing-your-tax/claiming-expenses/

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