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

Using a business vehicle to travel between home and work? Find out when this might trigger Fringe Benefit Tax (FBT) and what exceptions may apply.

Travelling between home and work in your business vehicle? IRD may consider this a fringe benefit. Learn when FBT applies and what exceptions are allowed.

Is Home‑to‑Work Travel Subject to Fringe Benefit Tax (FBT) in NZ?

In February 2025, Inland Revenue released an updated Interpretation Statement outlining when employer-provided travel by motor vehicle between home and work is considered a fringe benefit and subject to FBT.

We’ve pulled together a summary of this statement to give you the crucial details on when the commute between home and work may be classified as a ‘fringe benefit’ and the key exceptions.

What is a ‘Fringe Benefit’ in this context?

We have a whole article on Fringe Benefit Tax, but in this context, if you have a work vehicle that is available for ‘private use’, then there is usually a fringe benefit.

‘Private use’ includes not only travel that benefits you personally, such as driving to/from the supermarket, or driving to social engagements/activities, but also includes your daily commute between home and work.

As a general rule, travel between your home and workplace is considered a personal expense.

Four key exceptions when home-to-work travel is not deemed private use

Even though the general rule says home-to-work travel is private, there are four specific situations where it's treated as "on work" travel and won't be subject to FBT.

If you must use the vehicle to carry tools, instruments, or other essential work items that you need for work, both at home and at your workplace, and these items are too bulky, valuable, or sensitive to transport otherwise, then your travel is likely not private use. Your own transportation is considered "incidental" to moving the equipment.

Example: A musician who transports bulky instruments between their home (where they practice) and a concert hall (where they perform) in an employer-provided vehicle, especially if the vehicle is only for this purpose.

If your job inherently involves a lot of travel to different workplaces throughout the day, and your home is essentially your ‘base of operations’ then your travel from home to your first job, and from your last job back home, is considered "on work".

Example: A community nurse who travels directly from their home to various patients' homes throughout a rural region, returning home at the end of the day. Their patient list constantly changes, and travel is essential to their duties.

If you are required to respond to emergency calls from home, and your responsibility for the task begins before you leave home, then the travel to the emergency and back home is not private use.
Example: A person on-call for responding to and assisting with vehicle breakdowns.

4. Home as a workplace (base of operations)

This is a high bar to meet. It means your home is genuinely a primary place where you must do your work because of the nature of the job itself, not just because you prefer to work from home.

Are there strong business reasons for you to work from home (i.e. is it
necessary for your role, not just convenient?)

Do you carry out a significant amount of work at home?

Do you store a significant amount of business goods or equipment at home?

Is a significant space in your home dedicated solely to work activities?

Are the activities you do at home closely linked to the business?

Simply choosing to work from home or allowing your employees to (even to save rent) is generally not enough to make your home a "workplace" for FBT purposes if the job could be done entirely in an office (or location outside of the home).

Example: A self-employed electrician, Sam, runs his business from home. He stores tools, equipment, and materials in his home garage and completes all his job scheduling, quoting, and invoicing from a dedicated home office. Each day, Sam drives from home directly to different customer sites to carry out electrical work.

What about ‘Minor or Insignificant’ private use?

Sometimes, a small private detour during a work-related journey can be ignored. 

The Commissioner considers a private detour to be minor or insignificant if it does not exceed both:

Approximately 5% of the total journey; AND

Example: A plumber detours 1 km to the supermarket to grab lunch on their way from one job to the next. If the total journey is 20 km, this detour is 5% of the journey, making it minor or insignificant.

Vehicles taken home for security or charging EVs

Just taking a vehicle home for security reasons or to charge an electric vehicle (EV) generally does not make your home a workplace or mean the travel is not a private benefit. The act of transporting yourself between home and work is still a private purpose of the journey, and it's more than an ‘incidental’ benefit.

There are also specific legal exclusions that can apply, meaning FBT won't be charged in certain situations, such as:

Work-related vehicles: Certain vehicles, especially those sign-written with the employer's business name/logo (and not cars), may be excluded.

Emergency calls: there's a specific statutory exclusion for emergency services related to health, life, or essential machinery/services that applies for a 24-hour period.

Business trips of 24+ hours: If your job requires regular business trips where you're away from home with the vehicle for at least 24 continuous hours, this exclusion might apply.

Employer-provided public transport: Subsidised public transport fares for home-to-work travel (bus, rail, ferry, cable car) are excluded.

Employer-provided self-powered/low-powered vehicles: This covers bicycles, electric bicycles, scooters, electric scooters, and certain vehicle-share services if used mainly for home-to-work travel.

For further information, you can access the whole 59-page Interpretation Station from Inland Revenue at https://www.taxtechnical.ird.govt.nz/interpretation-statements/2025/is-25-02.

Beany Resources delivered straight to your inbox.

When is travel between home and work subject to FBT?

GST is a tax everyone pays on goods and services while living out their day-to-day lives.  Businesses collect this on behalf of the government and forward it via GST returns.

New to GST? Learn the basics of Goods and Services Tax in New Zealand, including how it works, when to register, and what your responsibilities are as a business owner.

GST Basics for NZ Business Owners | How GST Works in New Zealand

GST (Goods and Services Tax) is a tax on most goods and services sold by businesses. While it feels like a tax on businesses, it really isn’t. Instead, it’s ultimately paid by people living out their day-to-day lives.

Businesses act like tax collectors for the government by charging an additional 15% on top of each sale, which they later forward to Inland Revenue.

A business’s process of forwarding the GST to the government is called a GST Return.

In New Zealand, GST is a standard rate of 15%. However, there are exemptions and things (such as bank/transaction fees) that don’t include GST.

To calculate the GST-inclusive price, multiply the price by 1.15, while for a GST-exclusive price divide the price by 1.15.

Our GST calculator can calculate inclusive and exclusive prices. Feel free to bookmark if you regularly need to calculate this.

When do businesses need to register for GST

We’ve got a whole article about registering for GST if you want a full rundown of this.

If you’re earning over $60,000 per annum, you must register for GST (this also includes overseas sales).

If you’re earning under $60,000 per annum, GST registration is voluntary.

As a business, you collect GST on the sale of your product or service on behalf of the government. At the same time your business is also paying GST each time it buys something (and for most purchases you can claim this back).

At the end of each GST period, you need to calculate the difference between the amount of GST you’ve collected and the amount you’ve paid to figure out if you need to make a payment to the IRD, or receive a refund.

If you’ve collected more GST (from sales) than you’ve paid (from expenses), then you’ll have a balance to pay.

If you’ve paid more GST (from expenses) than you’ve collected (from sales), then you’ll get a refund.

Charging GST on taxable goods or services

Once you’re registered for GST, you charge it on goods and services you supply, and provide your customer with taxable supply information (commonly known as a receipt or invoice).

If you’re using an accounting system for invoicing, it’s usually set up to capture all the information you need to supply.

You can claim GST on most transactions. However, there are some complex areas. For example, second-hand goods, assets brought into the business, software providers, zero-rated and exempt items, private use of a business asset etc...

GST on property transactions (including land) is also a complex area and you need specialised advice before signing any documents.

Read these articles for a deeper look at specific topics:

GST and special transactions (zero-rated, GST-exempt, donations, land)

GST on remote services (also known as the 'netflix' tax)

Transaction charges (known as financial services – which are all exempt from GST)

Goods purchased overseas (but you can claim any import duty charged by Customs)

Sales of investments such as shares, bonds and term deposits

Payments to suppliers who are not registered for GST (except for second-hand assets as described above)

Sale of land between two people who are both registered for GST (known as compulsory zero-rating or CZR)

How often do GST returns needs to be filed?

Typically, this depends on the filing frequency that was chosen when you registered for GST - six-month, two-month or monthly.

In some cases, you might not have a choice about your filing frequency as it depends on your yearly revenue.​

Less than $500,000 – choose any filing frequency

Between $500,000 and $24 million – choose between two-monthly or monthly filing

More than $24 million – you must file monthly

A GST return records the amount of GST you’ve collected and the amount of GST you’ve paid over the last reporting period. 

It also includes any adjustments that need to be made (your accountant will do this if they prepare and file your GST returns).

GST returns are due (for filing and payment) by the 28th of the month following the end of each GST period.

There are two exceptions to this. For the period ending 31 March, GST filing and payment are due by 7 May; and for period ending 30 November the deadline is 15 January.

If you file monthly, every other deadline will follow the 28th rule.

If you file every two months, your GST periods will run as April/May, June/July, Aug/Sep, Oct/Nov, Dec/Jan, Feb/Mar. Filing and payment dates will be 28 June, 28 Aug, 28 Oct, 15 Jan, 28 Feb, and 7 May.

If you file 6-monthly, your GST periods will run from 1 April - 30 September (filing and payment due 28th October) and 1 October - 31 March (filing and payment due 7th May).

Please note, these dates are based on a standard balance date (i.e. your financial year ends on 31 March). Every year some deadlines may be 1-2 days later if the normal due date falls on a weekend or public holiday.

Penalties for late filing or noncompliance

Late filing or payment can result in penalties and interest being applied by Inland Revenue. It's important to ensure timely submission and payment to avoid unnecessary costs and compliance issues.

Best practices for managing GST efficiently

Stay organised: ensure you keep a record of all transactions, including supporting evidence such as sales invoices and purchase receipts.

Regularly monitor your turnover level: if you aren’t GST registered, you need to monitor your taxable turnover so you know when you’re getting close to the threshold.

Regularly review your GST position to plan your cash flow and ensure you have sufficient cash to pay your GST liability

Regular reconciliation: reconcile your GST records regularly with your bank statements, sales data and purchase invoices to identify any inconsistencies before your GST filing due date approaches

Stay on top of deadlines: set reminders in your calendar for key GST deadlines. This helps ensure your returns are filed on time, avoiding late fees or penalties.

Accounting software like Xero and MYOB can automate much of the GST process, making it easier to track GST on sales and purchases. These tools can help generate GST reports, calculate GST due and ensure you’re on top of your obligations.

Do you need an accountant to submit your GST return?

You don’t necessarily need an accountant or tax agent to file your GST returns. However, GST regulations and compliance can be tricky and time-consuming, which can add unnecessary stress. Working with a professional can make the process easier, helping you avoid costly errors and free up your time.

If you're using Xero to run your business, Beany's team of accounting and tax experts can help with your GST returns. Visit our GST service page to learn more.

The basics business owners need to know about GST

The cost of getting an accountant for small businesses depends on several factors: from business size, timing, expertise to location.

EXPENSES  •  5 JUNE 2025  •  5 MIN READ

Wondering what an accountant costs in New Zealand? Learn what influences the price, from the type of business to the services you need.

How Much Does an Accountant Cost in NZ? | Business Accounting Costs

Dealing with accounting can be tedious and stressful, but it’s a necessary chore for every business owner. It can be challenging to balance your business, maintain good accounting records, analyse financial statements, and comply with tax deadlines. Hence, hiring an accountant is a wise decision. Although it’s considered an overhead expense, paying an accountant ensures that your finances are in check, comply with the law, and often save you far more in tax than you spend on the accountant’s fees.​

The cost of an accountant in New Zealand ranges from around $1,000 to $5,000 per entity per year, this could be either a fixed monthly fee or an hourly charge (vary from $100 to $800). However, other factors, such as the scope of the work and the accountant's experience and expertise must be considered as well.​

What’s the difference between a bookkeeper and an accountant?

Bookkeeping and accounting are integral parts of your business’s finances. Many business owners think they are one and the same, however, there are a few key differences.​

A bookkeeper is typically involved in recording business day-to-day transactions (e.g. payroll, invoicing, payment of bills). Their job is more repetitive. It does not require a lot of high-level knowledge or experience to be a bookkeeper. Normally, university graduates or business administrators with some training can take on the job. Their main focus is to make sure the accounting records are completed and up to date. ​

However, an accountant provides insights based on the information key financial data. Depending on their experience and knowledge base, they can provide you strategic advice, tax planning for the future and more. They review the business’s financial statements, budget for the coming year, prepare and file tax returns with IRD, and analyse business performance for you. 

The cost of an accountant commonly depends on several factors such as business size, expertise, business timing, experience level, level of accounting support you need, the tidiness of record keeping, and location.​

There's a general rule that applies when it comes to the cost of a small business accountant: the bigger and more complex your business is, the more the accountant needs to review. Compared to a small business that is operating under a sole trader structure, larger companies may likely have more transactions. For example, if you own a residential property vs own a popular restaurant in CBD; the amount of the transactions in a year is different. This means accountants need to spend more time reviewing and filing your tax returns. ​

At Beany, our fees are based on your business's gross annual income. The Form Package has a monthly fee of $145 (GST exclusive) if your annual gross earning is up to 250k. If your income exceeds this threshold, you can choose other packages such as Flow or Flex. ​

Some accountants have vast experience in specific industries (e.g. construction, farming, real estate). The cost of hiring an accountant who specialises in the construction industry for example, might be higher due to its complexity. Not only do they have to know and comply with specific laws and regulations, but they also need to have an in-depth understanding of ring fencing, inventory, and bright-line rules. ​

If you’re looking for an accountant closer to the date when your tax is due, the cost can also increase. Consult an accountant prior to filing so you avoid the stress of cramming and the extra cost of expediting the process. ​ 

Another option is to hire an accountant who offers fixed monthly fees. For example, Beany breaks your accountant fees into 12 months and you pay a fixed monthly fee. The packages covers company tax return plus returns for 2 directors/shareholders, and Companies Office annual return.

Your accounts are in good hands with Beany, we’ll send you an alert and your accountant will do everything you need after completing the hassle-free questionnaire (you save time sending heaps of paperwork to your accountant!).​

Experience plays a role in how much an accountant costs. A certified accountant with more experience will be more expensive. Although you can choose to use a less expensive accountant, be sure to do your due diligence to see if they meet your expectations. In NZ, the commonly recognised certification for accountants are CAANZ. Be sure to find a good Chartered Accountant. They may appear to be expensive to start with, but in reality, the services they provide to you may save you more on tax or increase business sales.

If you need more support from your accountant, that will obviously push the fee up. If you have no idea about accounting, you are likely in need of more help from your accountant to teach you, from the basic GST ruling, bank reconciliation and so on. However, if you have been in business for many years, you may already know all the tax deadlines, Xero functions, which requires less help from your accountant.​

Businesses operating under different business structures have an impact on the level of accounting support you need. Sole traders won’t need the same level of support as a business operating under trust or company structures.  The bare minimum support you need from your accountant is to meet compliance with IRD. However, if you’re running a small business as a sole trader, your accounting and tax requirements will be more straightforward than trusts or companies. You can read more on business structure in this article.

Read more: How to find the right accountant for your small business

The better you keep your records tidy and up to date, the cheaper your accountancy fee will be. Some business owners have the idea to dump all information to the accountant at year end, and expect things to be tidied up nice and quick. It can be done, but it will also be more costly as more time and effort is spent digging into the records. ​

Also, it is important to remember it is your business to start with. We generally find business owners with good record keeping and willingness to learn accounting knowledge will have good business results and keep accounting fees low. With the help of technology, it isn’t that hard. When you make a large purchase, simply take out your phone and take a photo of the invoice, and upload that to Xero straight away. This can reduce the work for your accountant at year end, asking you about an invoice back in November, which you will find hard to recall what you bought and where the invoice was.

In general, it is cheaper to find an accountant in a big city e.g. Auckland, compared with a smaller town. There is more competition in a big city, which can push down the accountancy fee. However, the key isn’t to find the cheapest one, but the best one at a lower cost. 

It is common for business owners to believe that they don't need an accountant if they’re using accounting software. But the truth is: it is better to have both. Technology certainly helps, but hiring an accountant will ensure you're properly guided and compliant with laws and regulations. Having them on board can not only help you improve your financial systems, but also eliminate the headache when it comes to understanding the nuances behind the key numbers and enabling you to grow your business further.

Read more: How to find the right accountant for your business​

Beany are accountants for ambitious businesses, delivering big firm expertise without the big cost. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise. Book a call or get in touch to discuss how we can help your business.

The cost of an accountant for your New Zealand business

Expenses

Using your vehicle for business in New Zealand? Learn how to claim motor vehicle expenses, including mileage rates, logbook requirements, and GST rules.

EXPENSES  •  5 JUNE 2025  •  6 MIN READ

Claiming Motor Vehicle Expenses in NZ | Business Vehicle Tax Guide

Here’s the deal. Everyone is trying to make the most of their ability to record their personal vehicle use as a business expense, and in response, the IRD is doing their best to minimise the eligible criteria.

When you’re a client of ours, you won’t have to worry too much as we make sure you always claim the right amount. But regardless, let’s explore how motor vehicle expenses work.

Motor vehicles for sole traders and partnerships

If your vehicle is used solely for business purposes, all motor vehicle expenses (e.g. fuel, maintenance, servicing, insurance, WOFs, replacement tyres, and similar) can be claimed as expenses.

Business purposes doesn’t include school drop-offs, going to the supermarket, or even travelling between home and work. The only possible exception here is when your home also acts as your office.

When a sole trader or partnership also chooses to use a business vehicle privately, the costs need to be separated.

A logbook records all travel over 90 days. It notes the distance, date and reason for each trip. This information can then be used to understand the proportion of use allocated to the business, and we can choose one of two methods:

For the first 14,000km travelled, claim $1.04 per business kilometre. A lower rate gets applied to additional kilometres (and is different for diesel, petrol hybrid and electric cars)

Apply the percentage of business travel to all vehicle expenses incurred i.e. if it’s 70% of the time, 70% of a WOF or a service can be claimed as a business expense

Assuming your travel habits don’t change significantly, your logbook can be valid for up to three years.

There’s also some good news about logbooks. While you can still find a template on the IRD’s website, you can digitise the whole process with an app to save time. You may want to check out Driversnote or similar apps.

If you don’t intend to keep a logbook, you have two more options.

1.  Claim up to 25% of all vehicle expenses. The IRD may ask you to justify whatever percentage you opt for.

2. Claim $1.04 per kilometre for up to 3,500km, and then a lower rate for additional kilometres. You’ll still need to track your business travel, but without as much detail as in a logbook.

In addition to the methods mentioned above, companies have another option. Here’s how the 'Motor Vehicle Reimbursement' (also known as FBT Reimbursement) works.

First off, if the vehicle was purchased from a third party, it is recorded at its purchase price. However, if purchased from a related party (e.g. yourself as shareholder, your mother, aunt, mate), then you need to work out the market value. The easiest way is to look on Auto Trader or TradeMe Motors for a vehicle with the same year, make and model, and similar condition. We can use the advertised price as its market value.

If a shareholder decides to use the vehicle for private use, this benefit they’re receiving must be recorded in the company’s financial statements. We call it a benefit that the shareholder is receiving, because they don’t need to purchase a car, and the company is paying for their vehicle expenses.

We calculate the reimbursement based on the vehicle’s value when it was brought into the company, and the number of days it’s available* for private use. The reimbursement is then recorded as a separate income line in the company’s financial statements (it’s considered income because the company is receiving compensation from the shareholder).

*Availability for private use: shareholders reimburse the company for any day that the vehicle is 'available' to them, which includes when it sits on their driveway (and not just when it was used privately).

A vehicle serving a specific function, which cannot take passengers

The vehicle shows prominent branding that can’t easily be removed

A shareholder having a second or third vehicle to use privately

The company says, in writing, that the vehicle cannot be used privately

The company doesn’t need to file FBT returns to the IRD

No cash changes hands. The amount is calculated and then adjusted when it’s time to prepare financial statements

An important note is that FBT Reimbursement doesn’t apply to non-shareholder employees. Their benefit falls under the Fringe Benefits Tax (FBT) regime and is accounted for separately.

Can I claim GST on a personal vehicle that I use for business?

If you’re a sole trader, you can record the vehicle as a business asset. GST can be claimed on its market value at the time the vehicle is introduced to the business

Your company can purchase your personal vehicle at market value, and the GST is claimed when transferred.

No cash needs to change hands, just let your accountant know and they can enter the info into your accounting software for your next GST return.  Just be aware that your accountant will make an adjustment for the private portion of expenses at the end of the financial year.

How much GST can I claim if I borrow to buy a vehicle?

You can claim all of it up-front. In fact, some lenders will require that you use your GST refund to repay part of the loan.

The easiest way to process this is to provide your accountant with the sale and purchase agreement and your financing arrangement, and they'll ensure it's recorded correctly for your next GST return.

Are my loan repayments a business expense?

No, they aren’t. The payments are going towards reducing your loan balance. However, the interest on the loan can be claimed for business purposes. Your accountant makes this adjustment when they prepare your financial statements.

What happens when I sell a business vehicle?

If you’ve claimed GST on the purchase price, you need to declare it on the sale price

If the sale is to yourself or a related party, you’ll need to know its market value (you’re not allowed to sell it to yourself for $1)

Tax must be paid on any profit from the sale

Your asset needs to be removed from the fixed asset register (please leave this to your accountant)

If the proceeds from the sale don't go through your Xero-connected bank account, you just need to provide your accountant with the sale price and they'll handle it from there.

Is it smarter to borrow to purchase a vehicle, or lease instead?

The vehicle belongs to you or the company, assuming you meet the loan conditions

GST can be claimed on the full purchase price

It’s an asset, and we will depreciate it as an expense over a number of years

The loan repayments are not deductible, but the interest portion is

In nearly all cases, the vehicle doesn’t belong to you or the company

 It’s not a business asset, so we can’t depreciate it

The lease payments are fully tax-deductible

When the lease expires, you will have to return the vehicle

Here’s when we often get the follow-up question: 'What is my best option for tax purposes?'

That’s one we can’t answer. It’s more of a business decision and it depends on your cash flow, cost of the vehicle, available finance and personal preferences.

Beany are accountants for ambitious businesses, delivering big firm expertise without the big cost. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise. Book a call or get in touch if you want to discuss your business and see how we can help.

Oops.. Something went wrong

Latest Beany articles

When is travel between home and work subject to FBT?

The basics business owners need to know about GST

The cost of an accountant for your New Zealand business

What motor vehicle expenses can I claim for my business?

GST on second-hand goods

Short Story Ltd - Growing a small family business with Beany at our side

Budget summary 2025

What is fringe benefit tax (FBT)?

Services

Resources

Company

Client support