What Business Expenses Can I Claim in NZ? Ask These 3 Questions First

You bought it for the business. Well, mostly.

You used it in content, mentioned it to clients, maybe even justified it as “marketing”. So surely it can go through the books?

Not always.

When it comes to business expenses in NZ, some costs are clearly business-related. Some are clearly private. And some sit right in the murky middle, wearing a very hopeful business hat.

This is not a full list of every possible deduction. That would be about as fun as reading the back of a shampoo bottle in a waiting room. Instead, it is a practical guide to help you sense-check the blurry expenses before they go through the books.

Quick answer: what business expenses can I claim in NZ?

In NZ, you can generally claim business expenses that are connected to earning business income or running your business. You usually cannot claim private or personal costs, even if they loosely help your work. If an expense is used for both business and personal reasons, you may only be able to claim the business portion.

Before claiming a blurry expense, ask:

1. What business am I actually in?

2. How does this cost help that business earn income?

3. Who gets the real benefit?

Not every “work-related” cost is a business expense

If you have ever Googled “what business expenses can I claim”, the answer is usually less about finding a magic list and more about understanding the reason behind the expense.

In short, the question is not just whether an expense feels work-related. It is whether it genuinely relates to earning income or running the business, and whether any private use needs to be kept out or split out.

IRD’s general guidance on business expenses is a good starting point here, because it explains that businesses are taxed on income minus business expenses and other deductions, and that records matter.

Claimable business expenses can reduce your taxable income, which is why it matters to get the line in the right place.

A business expense should earn its spot in the business, not just sneak in because it was vaguely work-adjacent.

That brings us to two important ideas: nexus to income and private limitation.

Plain-English tax terms used in this article

Before we get into the examples, there are a few tax terms worth translating into plain English.

Business expense: A cost that belongs to earning income or running the business.

Nexus to income: The connection between the expense and the income your business earns. Basically, how does this cost help the business make money?

Private limitation: The part that says personal or domestic costs usually cannot be claimed through the business. Put simply, who really gets the benefit?

Mixed-use expense: A cost that is used partly for business and partly personally. In that case, only the business portion may be claimable.

You need to look at both nexus to income and private limitation. That is why an expense can feel connected to the business but still be partly or fully private.

If you trade through a company, the treatment can be different, especially where the company pays costs that privately benefit a shareholder or employee. That is where things like shareholder current accounts, PAYE or FBT can come into play, so it is worth checking before assuming.

The content creator example: when personal spending looks business-shaped

This comes up a lot for content creators, influencers and anyone whose personal life overlaps with their business.

Say a content creator is renovating their own kitchen. They film the whole process, post updates, tag brands, create reels, share before-and-afters and use the renovation as content.

They then want to claim the cabinetry, benchtop, tiles and appliances because “the renovation was content.” You can see how they got there, but the kitchen still has to do more than look good on camera to become a business expense.

The filming, editing software, camera gear, lighting, paid videographer or content planning tools may have a much clearer connection to the content creation business. Those are the things used to create the content.

IRD’s guidance for content creators also notes that private or domestic expenses cannot be claimed, even where someone is earning income from content creation.

Filming the kitchen renovation may be part of the business. The kitchen itself is still where someone makes toast.

That same thinking can apply to nursery items, groceries, clothes, holidays, beauty treatments and other personal purchases that appear in content. Content may be the business, but the thing being filmed may still be private.

Another thing to watch: if a content creator receives products or services in exchange for content, those items may also need to be considered as income, not just expenses.

The three questions to ask before claiming a business expense

1. What are you actually in the business of?

This is the first big sense-check.

A builder buying materials for a client job is very different from an influencer buying materials to improve their own home.

An event planner creating a mock tablescape purely for a styled shoot is different from claiming their own birthday party because it was styled and photographed for marketing.

The question is not just “did this help me make money?” It is “does this cost belong to the business I am actually running?"

2. Who gets the real benefit?

This is where private limitation comes in.

If the main benefit sits with you, your family, your home or your personal life, the expense may not belong in the business.

The household benefits from the new kitchen, the parent and baby benefit from the pram, the individual benefits from grooming and the family benefits from the holiday.

The business may get some content, visibility or convenience, but the private item does not get to put on a blazer and call itself claimable.

3. Was this bought for the business, or was the business invited along afterwards?

This is not the only test, but it is a very useful gut check.

• Would you have renovated the kitchen even if no camera was rolling?

• Would you have gone on the trip because you wanted a holiday?

  
  

If the honest answer is yes, there may be a private benefit that needs to be considered.

Usually claimable, usually not or depends: quick guide

This list is a starting point, not a blanket yes. The purpose, business use and records still matter.

Expense type	Usually Claimable	Why?
Accounting and bookkeeping fees	Usually yes	Directly related to running the business
Business software and subscriptions	Usually yes	Used to operate or manage the business
Advertising and marketing	Usually yes	Connected to finding clients or customers
Tools and equipment	Usually yes	Stronger when used directly in the business
Protective clothing or branded uniforms	Often yes	More clearly work-specific than ordinary clothing
Ordinary clothing, hair, makeup or grooming	Usually no	Usually has private benefit
Everyday lunch	Usually no	Normally a personal living cost
Childcare	Usually no	May allow you to work, but is usually private
Vehicle used for work and personal trips	Depends	The business portion may be claimable with records
Home office costs	Depends	A fair business portion may be claimable
Home renovations	Usually no or partly at most	Often benefits the household
Training	Depends	Stronger if it maintains or improves current business skills
Business travel	Depends	The genuine business portion needs records

Examples of expenses that feel claimable but may not be

Some costs are mixed-use, which means they are partly business and partly personal. In those cases, only the business portion may be claimable. Here are some common examples where the lines can get blurry.

Event managers

An event manager may want to claim their own birthday party, wedding, baby shower or anniversary because it was styled and photographed for marketing.

The issue is that a personal celebration still has private benefit.

A mock event set up purely for a styled shoot, with no personal celebration attached, may have a stronger business argument.

Tourism operators and travel consultants

Family holidays, cruises, resort stays, luggage and attraction tickets can be tricky when someone says, “It was research.”

A private holiday does not become fully claimable because you looked at a hotel, posted about the location or had one supplier meeting.

A properly documented business trip, site inspection or conference itinerary may support a business portion. Family costs should not be included.

IRD’s overseas travel guidance is useful here, especially where a trip has both business and private parts.

Personal trainers and fitness professionals

Client equipment is much easier to justify than personal gym memberships, supplements, smartwatches or wellness costs. Your body may be part of the job, but it is still yours after hours too.

Tradies and construction businesses

Tools, safety gear and work vehicles can be legitimate business costs. Boats, spa pools, home renovations and home workshops need a much stronger business reason.

A boat might make sense for a Waiheke builder getting to Gulf Island jobs. It is a much harder sell for a business with no real marine or access needs.

And being sore after work does not automatically make the spa pool claimable. It might feel work-related, but that one needs a very strong business reason.

Home-based businesses

Working from home does not mean the whole house becomes the business. A broken office window, desk, office chair or dedicated office heater may be easier to justify.

Re-roofing the whole house, replacing all the curtains or doing a full renovation will usually need much closer review, because it may mainly benefit the household, may be capital in nature or may not relate clearly enough to the business space.

Same goes for interior designers or stylists using their own home as portfolio content.

IRD’s home office guidance says there needs to be a connection between using your home and earning business income, and only a portion of household costs may be claimable.

Real estate agents

Real estate agents often ask about suits, shoes, hair, makeup, Botox, skincare, grooming and vehicle presentation because looking professional matters in the industry.

The issue is that ordinary clothing and grooming usually have private benefit. Even if you only wear a suit to work, it is still the kind of thing a person can wear privately. Branded uniforms, signage, advertising, professional photography and genuine business-related vehicle use are much easier to support.

Same item, different answer

This is where business expenses in NZ can get frustrating. The same type of purchase can be fine in one business and very questionable in another.

A boat may be business-related for one person and private for another. A builder based on Waiheke who uses a boat to reach jobs on the gulf islands may have a real business reason. A traffic management business with no marine access need is a very different story.

A party may be business-related in one situation and private in another. An event manager’s own birthday party has private benefit. A mock styled event created only for portfolio content may have a stronger business argument.

A home cost may be partly business-related or mostly private. Fixing a broken office window is different from re-roofing the whole house.

A vehicle may be fully business, partly business or mostly private. A ute used for jobs, tools and client visits is different from a vehicle mostly used for school runs, groceries and weekend trips. IRD expects records for business vehicle use.

What can I claim as a business expense?

When genuinely business-related, the following may often be claimable:

• Accounting and bookkeeping fees.

• Business software and subscriptions.

• Advertising and marketing.

• Business phone and internet portion.

• Office supplies.

• Tools and equipment.

• Protective clothing and branded uniforms.

• ACC levies, depending on your business structure and circumstances.

• Training that relates to maintaining or improving current business skills.

• Business travel, with records.

• Vehicle costs for business use, with a logbook or other records.

• Home office portion if part of the home is used for business.

• Insurance, bank fees and professional fees.

  
  

Some bigger-ticket assets, such as vehicles, machinery, computers or equipment, may not be claimed in full straight away. Depending on the item and your situation, they may need to be treated as assets and claimed over time through depreciation.

The key words here are “genuinely business-related.” The facts matter. So does the paperwork. Your future self will be very grateful if you keep decent records.

If you are unsure how something should be treated, our small business accounting support can help you work out what belongs in the business and what needs to stay private.

The “can I claim this?” questions we hear all the time

Some expenses come up again and again because they sit right on that line between “that feels work-related” and “hmm, let’s not get carried away.”

Here are a few of the common ones.

Can I claim ACC as a business expense?

Often, yes, where the levy relates to the business, but treatment can depend on your structure and circumstances.

For example, ACC levies connected to self-employed income or employees may be treated differently depending on how your business is set up. If you are not sure, ask your accountant before assuming.

Can I claim training as a business expense?

Often, if the training has a clear connection to the income you already earn and maintains or improves skills used in your current business. It can get less straightforward if the training gives you a new qualification, helps you move into a new business area or is more personal development than business-related. This is one to check before assuming.

Can you claim clothes as a business expense?

Usually not if it is ordinary clothing, hair, makeup, Botox, skincare or general grooming, even if presentation matters in your industry.

A real estate agent may only wear a suit for work, but that does not automatically make the suit claimable. Branded uniforms, protective gear, safety clothing or distinctive workwear are much easier to support.

Is childcare a business expense?

Usually no. Childcare may make it possible for you to work, but that does not automatically make it a business expense.

There are separate rules for businesses that actually provide childcare services, but that is different from paying for your own child’s care so you can work.

Can I claim lunch as a business expense?

Usually not if it is your everyday lunch during a normal workday. Your lunch is usually personal, even if you eat it at your desk while answering emails like a true small business multitasker.

Some meals may be claimable in specific situations, such as business travel, conferences or client entertainment, but the rules can be specific and some entertainment costs are only partly deductible.

Can I claim a car as a business expense?

Maybe. If a vehicle is used for both business and personal trips, you may be able to claim the business-use portion. Keep a logbook or records that show the business use.

Do not assume the full vehicle cost is claimable just because there is some business use.

Can I claim home office expenses?

Maybe. If you work from home, you may be able to claim a fair portion of costs such as power, internet, rates or mortgage interest, depending on your situation.

That is different from claiming general home improvements. A dedicated office chair is one thing. Replacing the curtains in the whole house is another.

Can I claim travel as a business expense?

Maybe. If travel includes both business and personal time, only the genuine business portion may be claimable, if properly documented.

A family holiday does not become a business trip because you answered emails, posted content or squeezed in one short meeting.

What happens if you claim something you should not?

If IRD reviews the claim and disagrees, the expense may need to be reversed. If GST was claimed, that may need to be reversed too. Depreciation may also need correcting if the item was treated as a business asset and the tax return may need to be corrected.

That can lead to extra tax, penalties or interest. It may also put the business under more scrutiny in future.

This is not about overthinking every receipt. It is about giving the questionable ones a quick eyebrow raise before they head into Xero.

Good bookkeeping support can also help pick up these grey-area costs before they become a bigger issue.

The quick sense-check before you put it through the business

Before you claim it, ask:

• What business am I actually in?

• How does this cost help that business earn income?

• Who gets the real benefit?

• Is there personal or family use?

• Could only part of it be claimable?

• Do I have records and would I feel comfortable explaining it to IRD?

• Have I checked before spending the money, rather than trying to justify it later?

  
  

If the answer feels a bit wobbly, pause before putting it through the books.

For bigger purchases, it can also be worth getting business advisory support before you commit, especially if the expense is mixed-use or sits in a grey area.

Final takeaway

Some business expenses are obvious. Others arrive wearing a very hopeful business hat.

If an expense has you doing mental gymnastics, it is worth asking the question before you claim it.

We can help you work out whether the cost belongs in the business, whether only part of it can be claimed, or whether it needs to stay firmly in the personal pile.

Because “I think it’s probably fine” is not a strategy we’d recommend building a tax return around.

Not sure whether that expense belongs in the business? Talk to the My Two Cents team before you claim it.

---

About the Author

Haley Reyners is the founder of My Two Cents Accounting & Advisory and a Certified ICNZB Master Bookkeeper® — one of the highest recognitions in New Zealand’s bookkeeping profession. With over 20 years of experience, she’s passionate about helping small business owners find clarity, confidence, and calm in their finances. Haley leads her team with personality and purpose, breaking down complex accounting talk into everyday language that makes sense.