A 12-month plan designed for new business owners starting out, who may want some extra guidance around business structure, accounting software setup and training, and more.

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter pack

We prepare your GST returns ready for you to review and pay. We also remind you of when and how much to pay, and even send an alert if you forget! Requires Xero.

Prepare GST

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time. Requires Xero.

Bank reconciliation

We'll set up your Xero file from scratch, then give you the training you need to use it to its full potential.

Xero setup & training

We set you up with the right Xero subscription and manage your payments.

Xero monthly subscription

We set up your Xero file so it is optimised for you and your business.

Xero setup

An hour of training on how to use Xero to it's full potential.

Xero training

Can you claim food and drink as a business expense? Find out in this guide.

EXPENSES  •  24 APRIL 2025  •  4 MIN READ

Find out when food and drink costs can be claimed as business expenses in New Zealand. Understand Inland Revenue rules and how to stay on the right side of the law.

Claim Food as a Business Expense in New Zealand

It’s been a few years since IRD released Interpretation Statement IS 21/06 on the deductibility of meals for business purposes, but the implications are still catching some business owners off guard.

The statement clarified the rules around deducting the cost of meals during the workday and while travelling for business, and the message was clear - in most cases, you won’t be able to claim them.

The key takeaway? Meals are considered a personal expense not a business one, as you still need to eat and drink whether you're at work or not.

Claiming meals as a sole trader or partnership

No food or drink can be claimed as a business expense. Not even if you’re away on business, staying at a hotel overnight or many nights, or attending a conference. 

The only situation where meals and/or drinks can be claimed as a business expense is when you are ‘entertaining’ suppliers, wining and dining (potential) clients, holding staff functions, etc. These fall under the entertainment guidelines, where only 50% of the cost is deductible.

There are no exceptions to the above*. It’s black and white.

* Well…perhaps one. The only way a sole trader or a partner can claim meals with accommodation is if there are no self-catering motels available, and no supermarkets in the area. Even then, the amount claimed can only be the difference between the actual cost and what it would cost for you to have a meal at home. Good luck working that one out!

You’re in exactly the same position as sole traders and partnerships above, with one exception – if your signed employment agreement requires that your employer (the company) reimburse you for meals and drinks, or provide you with an allowance. Of course, what is an exception without strings attached?​

The cost needs to be incurred when you’re away from your normal place of work for business purposes

The reimbursement must be reasonable and in line with the company’s agreements with other employees. For example, you can’t have an elaborate meal with expensive wine, while other employees are limited to a Subway sandwich

Entertainment and FBT rules may apply depending on the situation

Read more: What is Fringe Benefit Tax (FBT)?

Ben travels between clients and doesn't get home until 8pm. He buys lunch, takeaway coffee and dinner during his travels. Can any of these expenses be claimed? No, they are considered personal in nature as Ben would still need to eat regardless of whether he was working or not.

Kat travels to a rural part of the country where the only accommodation is a place with a restaurant. There is no supermarket nearby and no option to self-cater. Kat has no other option but to dine in the restaurant for dinner which incurs costs higher than she would have if she was having dinner at home. Can anything be claimed in this situation? Yes, the difference between what she'd normally spend on a dinner meal and the cost she incurred may be claimable.

Bob is required by his employer to travel out of town for a couple of days to visit clients in other regions. Based on his employment contract he's entitled to be reimbursed for meals by the employer. Can the company claim these expenses? Yes, since the reimbursement is an employee expense, it can be deducted as a business expense.

Sally wants to grow the business and decides to take a potential client out for lunch to build the relationship. Can she claim the meal as an expense? Based on entertainment rules, she can claim 50% of the cost incurred while entertaining the client.

The costs of accommodation and travel to the location for business purposes continue to be deductible.​ When you travel for business purposes, you can claim the following expenses:

Taxis, or mileage or motor vehicle expenses if you use your own car for the business trip

If you’re travelling overseas, you can claim work-related expenses, including flights, taxis, and accommodations.

You can only claim GST on the business portion of the meal expenses. If you need to make a 50% non-deductible adjustment on any meal expenses, then the same adjustment is needed for GST. 

FBT tax is payable on meals directly provided by the employer to the employees as it's considered a type of benefit provided. 

When your employee is far away from their normal work location for business reasons, tax exemption may be available for the full amount of the meal payments. However, there is a 3-month time limit on this. 

A tax exemption also applies to payments for light refreshments (such as biscuits and coffee) when the employee is working away from their workplace most of the day, and the employer would normally provide the employee with similar refreshments.

Now you’re likely to be thinking to yourself But…, What if…?, What about…? The answer is probably no.

We understand that navigating business expenses and tax can be overwhelming.

As part of the tax return process, Beany's certified accountants check that all expense claims are accurate inline with New Zealand's accounting and tax legislation. You can also reach out throughout the year if you're ever unsure about the deductibility of any of your business expenses, GST application of the expense or anything else.

Alongside tax returns and financial statements, Beany provides a full suite of accounting services to clients. From bookkeeping to strategic forecasting, financial insights, management reports and more.

Book a call to discuss your accounting requirements and discover how we can help.

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Expenses

Whether you're a business owner, freelancer, or contractor, you could claim home office expenses related to business use for tax deduction.

EXPENSES  •  7 APRIL 2025  •  6 MIN READ

Running a business from home in New Zealand? Learn which home office expenses are tax deductible, how to calculate them, and what records you need to keep.

Home Office Expenses: A Tax Deduction Guide for Business Owners

Whether you're a business owner, freelancer, or contractor who works from home, you can claim tax deductions for business-related home office expenses. 

There are a few things to keep in mind if you want to claim these expenses:

There’s a connection between home office expenses and income-generating business activities; AND

The space needs to be a separately identifiable part of the building. This means the area needs to be obvious and identifiable as being used for business purposes that are separate from any other purpose. For example, working from the kitchen table doesn’t make it an office because the kitchen is not ‘separately identifiable’. 

Which home office expenses are claimable 

2 methods to calculate your home office expenses for tax deduction

How to calculate GST on home office expenses

Which home office expenses can I claim? 

Interest on a mortgage, or rental payments

Other more specific home office expenses can also be claimed:

Repairs and maintenance work on the areas designated for business can become full business expenses

Your mobile phone bill, if it’s used mainly for business

Depreciation on capital items such as computers and office furniture (you can claim 100% of capital items if they are under $1,000. If it’s over $1,000, it needs to be depreciated instead.)

How do I calculate home office expenses? 

Perhaps you’ve turned a spare bedroom into an office, and it’s no longer used as a spare bedroom. Or, you could be storing stock in the garage.If you’re doing either of these, it’s likely that some of your household costs are overlapping with operational business costs.

*If you’re storing stock in your garage, you can’t claim the expenses on the entire garage. Only the area being used for storage is claimable. 

There are two methods to calculate home office expenses:

Method 1: Using IRD’s Square Metre Rate

Using IRD’s Square Metre Rate is the most straightforward method when calculating home office expenses as a business owner. It uses a flat rate set by IRD each year based on the average cost of utilities per square metre of housing for New Zealand households. However, home office expenses such as mortgage interest, rates, or rental payments are not covered in this flat rate. You will need to calculate those home office expenses additionally based on the percentage of floor area used for your business. 

For the year 2023-2024, the rate is set at $53.10 per square metre. This rate is updated each year on IRD’s website. When using this method, you are not required to keep records of these individual expenses. 

The total house area is 150 square metres

The garage that is used exclusively for storing business assets is 36 square metres

A small room is used exclusively as a business office by the owners is 9 square metres

Total area for business use is: 36 + 9 = 45 square metres

Percentage of the home being used for business: 45 / 150 square metres x 100 = 30%

$2,000 in rates and $12,000 mortgage interest is paid every year.

In this case, a portion of 30% of home office expenses can be claimed against rates and mortgage interest paid yearly.

Total home office expenses = (total square metres used for business purposes) * square metre rate provided by IRD ($53.10 for the 2023-2024 year) + (percentage of the home being used for business) * (total rates, mortgage interest, and rent) 

Total home office expenses = (45*53.10) + (14,000*30%) = $6,589.50

You can choose to use The Actual Cost Method if using Square Metre Rate Method doesn't accurately reflect your home office expenses. This means you will need to calculate each item individually and keep records of any costs you intend to claim. 

Let’s use the previous example, keeping the $2000 paid for rates and $12,000 for mortgage interest.

In addition, you would like to add the following expenses and the costs are outlined below.

In this case, 30% of each home office expense can be claimed as relevant to the business. 

Total home office expenses = (percentage of the home being used for business) * (a sum of total costs for home items used every year) 

Total home office expenses = 30% * (2,000 + 12,000 + 1,020 + 480 + 1,200) = $5,010

If you are GST registered, you will need to remove the GST proportion (15%) on each home office expense and claim it separately, either in each GST return and payment period, depending on your GST filing frequency,  or at the end of the tax year. This means you can claim a portion of GST on home office expenses. 

However, if you have a mortgage or rent to pay, GST will not be included in those expenses. Be aware that your mortgage principal can’t be claimed as a part of home office expenses, only the interest portion. It is also worth knowing that the GST portion can only be claimed in the GST return rather than the income tax return at the end of the year. 

If you are using IRD’s Square Metre Rate method, you won't be able to claim the GST portion on home office expenses.

Keeping records and seeking professional advice

It’s important to keep records of all the home office expenses you intend to claim, such as invoices, evidence of payment, and business bank statements. Using accounting software such as Xero not only helps reduce time spent on admin but creates an easy ‘paper trail’.

We've gathered some of the most frequently asked questions from clients and here is what you need to know: 

If you’re a business owner that runs your business from home, you might be able to claim home office expenses for tax deductions. While the using IRD’s Square Metre Rate is relatively easy to use, the actual cost method can be tricky to calculate. It’s highly likely that working with an accountant will help you to save more tax.

Beany are accountants for ambitious businesses. Delivering big firm expertise without the big cost, we take care of all annual work including financial statements and tax returns, along with day-to-day bookkeeping. And we love to work on more complex concerns such as strategic forecasting, financial insights, buying or selling a business and all things accounting related. With Beany, we help people make smarter decisions for their business and lifestyle through our responsive, friendly expertise. Book a call today to discuss how we can help your business.

Home office expenses: a tax deduction guide for business owners

GST can be a minefiled and there are some transactions that may require additional attention.

Not all GST is straightforward. Learn how to handle GST on special transactions like digital services, imports, exports, land and more.

GST on Special Transactions in New Zealand

You may have encountered some transactions where you weren’t sure about the GST treatment. If you haven’t (yet), you may in the future.

The transactions explained in this article are ones that may require special attention. They are the most common situations we see, but by no means is this a comprehensive list.

GST can be a minefield, so if you’re unsure about any aspect, please contact your accountant.

Zero-rated supplies are still subject to GST, but at a rate of 0%, not 15%. This is different to exempt supplies which are not subject to GST at all.

The most common reasons for having zero-rated supplies are the importation and exportation of goods.

When selling overseas, your invoice needs to show GST at 0%. This applies to online sales as well, but you must keep documentation which proves that the customer was overseas at the time of sale. These sales must still be disclosed on your GST return.

If you purchase overseas goods, you cannot claim GST on the supplier’s invoice. Customs may charge import duty and/or an Import Transaction Fee which are both tax-deductible expenses. They will also charge you GST which you can claim back via your GST return. It’s not a straight-forward entry, so feel free to contact your accountant (or Beany support if you're a client) for assistance.

Australian invoices may have a separate line showing GST, but you cannot claim this either. 

There are three ways of selling a business:

Selling the business assets: you must pay GST on the sale price of assets sold.

If the business is a company, you can sell the shares: no GST impact.

Selling the business as a going concern*: if the seller and purchaser are both GST-registered, the sale can be zero-rated. This means the seller does not need to pay GST on the sale price, and the purchase cannot claim GST on the purchase.

All sale and purchase agreements need to be carefully worded. Before signing anything we strongly recommend you have the agreement reviewed by a lawyer and accountant. If certain aspects are not addressed or unclear, the repercussions could be disastrous.

* A going concern is where the business’ normal operations continue after the sale. The customer may not know the business has changed hands.

Example – selling business assets vs a going concern

If a farmer sells his farm, including house, land, sheds, livestock, plant and equipment. This is a going concern and can be zero-rated if the purchaser is registered for GST. He’s sold a farming operation.

If he only sold the land and house but kept everything else, the farming business has not been sold. It’s just the sale of assets. These assets may be subject to GST (see our section on land sales below).

An example of this could be a New Zealand newspaper using a third-party publishing company which is based overseas. The newspaper cannot claim GST on its payments to the reporter.

Exempt supplies are not subject to GST. They’re not zero-rated, GST just doesn’t apply. A slightly cynical way of looking at it, is that as the customer you don’t actually receive any goods or services. Examples of these are:

Residential rental property income and expense

We assume that businesses supplying remote services such as digital content, apps, software, subscriptions, and website design, receive more than $60,000 from sales to New Zealand customers. They are therefore legally required to register for GST in New Zealand and charge GST.

New rules came into place in 2023 regarding these types of businesses and GST. Read our article about GST on remote services (also known as 'Netflix' tax) for more info.

If a GST-registered organisation receives a donation with no strings attached, it is not subject to GST. By “no strings attached”, we mean that the person donating has done so voluntarily and expects nothing in return.

However, if it sells goods (fund-raising activities for example) or performs services (this could be a tour), GST must be applied and declared with Inland Revenue.

Businesses donating to other organisations cannot claim GST on this expense.

Ask any tax specialist and they’ll have a horror story in their ‘land tax gone bad’ file. We’ve seen more than our fair share of disasters and usually the conversation starts with, “I’ve just signed an unconditional contract and the real estate agent/best friend/someone I met in the pub who does this all the time [delete as applicable] tells me that everything’s fine”.

No disrespect here to real estate agents, but land tax is an extremely complicated area and even accountants get this wrong from time to time. One of the key issues is that what might work for one client does not work for another because of different scenarios.

Inland Revenue has a good “yes/no” flow diagram which is extremely helpful. They have a disclaimer though, in the small print:

"Disclaimer: This flowchart is a guide only and cannot be relied upon or substituted for professional advice. Nothing in this flowchart is binding on Inland Revenue. Leases aren’t covered. If there are other items included in the sale, please consult a tax advisor."

We cannot emphasise this enough. If you’re signing a sale and purchase agreement, take 10 seconds to consider this – should I just run this past my accountant?  If it’s anything but buying the family home*, the answer is always yes. The cost of getting this wrong can be HUGE.

* and even then, we still suggest you seek professional advice.

If you are not registered for GST, you cannot add 15% GST when selling a good or performing a service. Remember that the other person cannot claim the GST on the expense.

If you receive goods and services from an unregistered business, you cannot claim GST even if you are registered (except if they’re second-hand goods).

Handy Resource: use our GST calculator  to calculate GST inclusive and exclusive prices. 

The general rule with expenses is you can claim anything related to the production of your income. But there are some curly bits in the entertainment area.

EXPENSES  •  7 APRIL 2025 •  4 MIN READ

Not all entertainment expenses are tax deductible. Learn what you can and can’t claim in New Zealand, with examples to help you stay compliant and avoid surprises at tax time.

Entertainment Expenses NZ – What’s Tax Deductible?

As a business owner, you know that entertainment expenses are an important part of your overall financial picture. Not only do they help keep your staff happy and increase their morale, but they can also provide tax advantages to your business. But navigating the world of entertainment expenses can be tricky - what kind of expenses are tax-deductible, and which ones aren’t? 

This guide will provide you with the information you need for entertainment expenses:

Entertainment can mean food and drinks, social events, corporate boxes, trips, accommodations, and more. Entertainment expenses are what you’ve paid for your employee’s or customers’ entertainment. 

There are specific rules applied to different ‘categories’ of entertainment expenses. For example, some expenses are fully deductible with no Fringe Benefit Tax (FBT) implications, but some are not. There are situations where entertainment expenses are 100% deductible but still liable for FBT. 

The general rule about business expenses is that you can claim anything that helps you to generate business income. If it’s purely personal, such as taking mum out to dinner, you can’t claim it. But there are some curly bits in the entertainment area as there is often a blurred line between personal and business expenses. 

Please note, this is not an exhaustive list of entertainment expenses. Visit the IRD website to learn more.

Entertainment at sports events (e.g. a corporate box)

Cost of renting a boat for entertaining customers or employees

Food and drink at your office for a social event (e.g. a party or a function)

Off-site food and drink such as taking a client, supplier, or employee to lunch 

Gifts of food and drink that benefit your business and are enjoyed privately by the person who receives them (e.g. giving a client a bottle of wine)

'Supporting expenses' for entertainment such as the hire of wine glasses and wait staff for a work party

It’s important to note if there are personal elements relating to the entertainment expenses, the cost is likely to be 50% deductible. A good example is the cost of a Christmas party during the festive season. This is because you’re also enjoying it (there are personal elements).

Food and drink you provided at a conference for others (specific rules apply)

Meals an employee buys while traveling on business (unless it's a meal with an existing or potential business contact, then it's only 50% claimable)

Freebies to promote your services (such as branded stationery, but excluding any given to employees or people associated with you)

Entertainment you supply to the general public for charitable purposes e.g. donating food to a Christmas party at a children's hospital

Entertainment enjoyed or consumed outside New Zealand (the waters around NZ are considered part of New Zealand).

Gifts to employees and clients can be tricky, we have a blog explaining this topic in detail. In summary, gifting needs to meet the following requirements to be 100% tax deductible:

As long as you don’t provide any single employee with a gift of more than $300* each quarter (March, June, September, December), the costs are 100% deductible. However, if the gift is food and/or drink, then only 50% can be claimed. 

If you’re gifting vouchers, GST can’t be claimed on the purchase price. Be aware that the 50% rule applies here too i.e. if the vouchers are related to food and/or drink, you can only claim 50% as a business expense.

For gifts to clients, the rules are exactly the same as above, except there’s no set dollar value. 

* This is set by the IRD. Anything more than $300 per quarter is captured by the FBT regime. You really don’t want to go there.

GST can’t be claimed on non-deductible entertainment expenses. In order to claim GST for the period, you can add up the GST portion on claimable entertainment expenses with any GST you’ve paid on other expenses during the same period. 

For example, you’ve spent a total of $150 on books as gifts for your employees during April, May, and June. You’re eligible to claim the GST portion ($150*0.15 = $22.5) of your entertainment expenses at 100%. This is because:

The gifts are not related to food and/or drinks

You didn’t exceed the $300 per quarter threshold set by the IRD

As a result, you can include this $22.5 in your GST return and claim it back.

FBT on entertainment expenses is not very common, but it could happen. Entertainment expenses could be 100% deductible and liable for FBT if they are received by employees because of the work they do. For example, rewards for good performance, such as a restaurant gift voucher or weekend away.

You need to keep records such as invoices or receipts in order to make claims. As required by the IRD, you also need to keep records of the following information:

The date entertainment expenses were incurred

Keeping these records will help you to calculate the entertainment expenses you’re eligible to claim. It also helps you to identify which entertainment expenses are 100% deductible and which are only 50% deductible.

Do you know all there is to know on filing an income tax return in NZ? We break down the basics.

Do you know all there is to know about filing an income tax return in New Zealand? Beany breaks down deadlines, tax rates, the IRD and what businesses need to know to stay compliant.

NZ Tax Returns: Key Facts for Businesses

Do you know all there is to know about filing an income tax return in New Zealand? There are always misconceptions floating around, so we’ve put together a handy fact sheet to cut through the noise. Whether you're filing for the first time or are a seasoned professional, you need to file your tax returns correctly, on time, and (ideally) with the best outcome possible. This list provides a quick rundown on the key definitions, deadlines, and aspects of filing a tax return in NZ, as well as pitfalls to be aware of. Knowledge is power, as they say, so read on to keep yourself informed.​

The financial year (tax year) in New Zealand runs from 1 April to 31 March. 

Taxable income and deductions must be reported in New Zealand dollars.

Late filing of tax returns may result in penalties, interest charges, and loss of extension of time (for those with a tax agent)

Income tax returns are used to calculate the amount of income tax owed for the tax year.  Even if you're filing frequent GST returns, you still must file an annual income tax return, as it is a separate tax.

Tax returns can be amended if you find errors or omissions after they've been filed.

You must file a tax return if you derived any form of business income, self-employment income, or contracting income. You also need to file a tax return if you have earned more than $200 of income that has not already been taxed in New Zealand. This includes overseas income and rental income (including your Airbnb and Book a Bach property).

If you only earn income from New Zealand-earned salary or wages, interest or dividends, the IRD will contact you to auto-assess your tax return.

Taxable income may include salary and wages, interest, dividends, business income, and rental income.

You can claim a tax credit for tax deducted before it was paid to you e.g. PAYE deductions made by your employer, Resident Withholding Tax (RWT), or Imputation Credits showing on dividend and interest certificates.

Tax returns must be filed by the 7th of July for the previous tax year if you decide to file yourself, or by 31 March of the following year if you're working with an accountant and are eligible for an extension of time (EOT) i.e. 31 March 2026 for year-end 31 March 2025.

Individuals who earn between $24,000 and $70,000 per annum may be eligible for the Independent Earner Tax Credit, which is a refundable tax credit of up to $520.

Business expenses can be claimed in a tax return against business income as long as it helps generate taxable income. You’re not eligible to claim expenses that have ‘personal elements’.  You also can’t claim expenses incurred in earning PAYE-taxed salary or wages.

All companies must file a company tax return regardless of whether or not they were trading, or made a profit.

For companies with a balance date of 31 March - if you are filing yourself, your tax return is due on the 7th of July. With a tax agent (and extension of time), the deadline is the 31st of March the following year (i.e. 31 March 2026 for the financial year that ended 31 March 2025).

For companies with a balance date of 31 March - your tax liability needs to be paid by the 7th of February if you file your own tax return or work with a tax agent but don't have EOT. With a tax agent and EOT, the deadline is the 7th of April the following year (i.e. 7 April 2026 for the financial year that ended 31 March 2025).

Late filing of tax returns will result in a late filing penalty. If you are late to pay your taxes, you are liable to face both late payment penalties and use of money interest charges on any tax that was due.

Company tax returns are used to calculate the amount of company tax owed for the tax year.  The current company tax rate in New Zealand is 28%. 

If your company generates a loss during the period, the tax return calculates the taxable loss that can be carried forward and offset against future taxable profits, therefore reducing your tax liability in future periods. 

Taxable income includes trading profit, interest income and investment income.

Tax credits are sometimes available. For example, if you carry out research & development and hit certain criteria relating to innovation and making advancements in science or technology, then tax credits may be able to be claimed.

Business expenses can be claimed in a tax return against business income as long as they are incurred wholly and exclusively for the purposes of the trade.

The Inland Revenue Department is responsible for collecting tax from both individuals and businesses, as well as administering tax law passed down by the New Zealand government. They also manage benefits, tax credits, and other financial support for New Zealand citizens (such as student loans and child support). 

Understanding how the IRD works is vital to submitting a tax return correctly, so here are some key points to keep in mind:

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