1. If you’re a sole trader and use an area of your home for work, you can claim part of your household expenses, eg mortgage interest, internet and power bills, as business expenses.
You can claim 100% of expenses that relate wholly to your business, eg business landline, and part of others. Important: You must only claim true business expenses. Read more
2. Who may be entitled to paid parental leave payments?
Employees and self-employed people having a baby or who are the primary carers of a child under six may qualify for parental leave payments. Read more
3. Who is eligible to be covered by ACC for workplace accidents?
Everyone in New Zealand is eligible to be covered for accidents by ACC, even if you don’t work. However, companies, partnerships, sole traders and contractors must pay ACC for cover. Read more
4. If you’re a sole trader, what’s the least you can put in to your KiwiSaver scheme each year to get the government’s maximum yearly contribution of $521.43?
You don’t have to put this amount into your KiwiSaver scheme — but if you put in less, you won’t get the full government top up. Read more
5. If you buy lunch for a client, you can claim all the cost as a business expense.
Buying a meal for a client is an entertainment expense — you can only claim 50% of these. Read more
6. If you’re a sole trader or contractor, how might you qualify for a discount on your first year’s income tax bill?
Sole traders and contactors don’t have to pay tax on their first year’s income until the following year. But paying it early means you could get a 6.7% discount. Read more
7. You can qualify for Independent earner tax credits (IETC) worth up to $520 a year if you’re:
Anyone who earns $24,000 to $48,000 a year after expenses and losses can claim the credit when they file an individual tax return or ask for a personal tax summary from Inland Revenue. Read more
8. You’re legally entitled to five days paid sick leave a year once you have been working for six months for the same employer and you are:
Only employees get paid sick leave — their employer pays for it. If you’re a sole trader or contractor, it’s good practice to set aside at least five days’ income for when you’re too sick to work, or agree a number of sick days in a contract. Read more
9. You can only qualify for a Working for Families tax credit if you have children and are self-employed:
Anyone who works — for themselves or someone else — and has children in their care can get the tax credit. Read more
10. You can claim back as a business expense any business or contracting ’set-up’ costs, eg money for registering a company or travelling to interviews.
Set up costs for businesses can’t be deducted from your tax, but you may be able to claim a deduction for any assets you’ve bought and claim the amount as a depreciable asset. Read more
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