What expenses can I claim?
As a sole trader, you can claim any expense that is genuinely incurred in earning your business income. The expense must have a clear connection to your work — personal expenses are not deductible.
Common claimable expenses
| Category | Examples |
|---|---|
| Office & admin | Stationery, printer ink, postage, software subscriptions |
| Home office | Portion of rent/mortgage interest, power, internet, rates, insurance |
| Vehicle | Business km (using IRD rate or logbook), fuel, WoF, registration, insurance (business portion) |
| Professional services | Accountant fees, legal advice, bookkeeping |
| Phone & internet | Business-use portion of your mobile plan and broadband |
| Marketing | Website, social media ads, printed materials, business cards |
| Training & education | Courses, books, subscriptions — if directly related to your work |
| Tools & equipment | Items used for your business — may be depreciated over time if over $1,000 |
| Bank fees | Fees on a business bank account |
| Business insurance | Premiums for professional indemnity, public liability, etc. |
What about mixed-use expenses?
Some expenses are partly personal and partly business. In these cases, you can only claim the business proportion.
For example:
- If you use your mobile phone 60% for business and 40% personally, you can claim 60% of the bill.
- If you use a room in your home as an office, you can claim the proportionate share of household costs.
What you cannot claim
- Personal expenses (groceries, clothing, personal travel)
- Fines or penalties (including IRD late payment fees)
- Private vehicle use
- Meals and entertainment (in most cases)
- The principal portion of mortgage repayments
- Costs with no connection to earning your income
Depreciation on equipment
If you buy equipment or assets for your business (computer, camera, tools) that cost more than $1,000, the cost is generally spread (depreciated) over several years rather than claimed all at once. IRD publishes depreciation rates for different asset types at ird.govt.nz.
Items costing $1,000 or less can generally be written off in full in the year of purchase.
Keeping records
For every expense you claim, you need supporting documentation — a receipt, invoice, or bank statement. IRD requires you to keep these records for 7 years.
💡 Lodg helps you identify all your eligible deductions — connecting your bank account means transactions are imported automatically, so nothing gets missed.
Source: ird.govt.nz — Types of business expenses | business.govt.nz — Claiming expenses