What Can I Claim? A Simple Guide to Deductible Expenses for Small Businesses
When you’re running a small business, every dollar counts, and knowing what expenses you can claim can make a big difference to your bottom line.
If you’re unsure what “deductible expenses” even means, you’re not alone. Many small business owners miss out on valuable claims simply because no one explained it clearly.
So let’s break it down.
What is a Deductible Expense?
A deductible expense is a cost you can claim in your tax return because it directly relates to earning your business income.
Think of it like this: if you had to spend the money to run your business or deliver your service, it’s probably claimable.
What Can You Claim?
Here’s a simple guide to common deductible expenses:
- Office Supplies & Stationery – pens, notebooks, printer ink, folders, etc.
- Technology & Subscriptions – Xero, Microsoft Office, Zoom, Dropbox, Canva — if it’s for work, it counts
- Phone & Internet – If you use your mobile or home Wi-Fi for business, you can claim a portion of the cost
- Vehicle Costs – Claim fuel, WOF, rego, insurance, and repairs — using either a logbook or a per-kilometer rate
- Home Office Expenses – Power, rent, or mortgage interest if you regularly work from home
- Professional Services – Accountants, bookkeepers (yes, even me!), business coaches, and legal fees
- Tools & Equipment – Anything used to do your job, from laptops to toolkits
What You Can’t Claim
Not every expense is deductible. You can’t claim:
- Personal spending
- Fines and penalties
- Non deductible entertainment (though some meals may be 50% deductible)
Top Tips
- Keep all receipts – use tools like Xero or Hubdoc to store them digitally
- Use a separate business bank account – it keeps everything cleaner and easier at tax time
- Get advice early – having a bookkeeper or advisor can save stress (and money) later
Final Thoughts
Knowing what you can claim helps you:
- Save money on tax
- Make better business decisions
- Stay organised and in control
If you’re not sure what’s deductible, it’s always okay to ask. A little clarity goes a long way.
Need help getting your expenses sorted? Visit www.booksadmin.nz. I help small businesses stay on top of it all.