Log your business expenses in Hnry and we’ll get you the relevant tax relief for those expenses.
If you are purchasing something solely for business purposes, then in most instances you can claim the whole cost of the item.
If you have an expense that is for mixed use (i.e personal and business) then you can only claim the proportion that is used for business (e.g. if you use your mobile phone for both work and personal calls then you can only claim 50% of the phone bill).
Loading a business expense with Hnry is painless. Once you have logged into your Hnry account, simply click the 'Expenses' tab, give us a brief description of the expense, and upload a photo or scanned image of the receipt or invoice. Then hit 'Save'.
N.B. It's really important that you upload an image of a valid receipt or invoice, especially showing whether GST is included in the overall price. Look here for a separate article on what a valid receipt should look like.
Different expenses have different rules on how much tax relief you are entitled to so always make sure that you select the right category when loading your expense into Hnry. Here is a handy guide on the different Expense Categories we use:
- ACC Levies - ACC levy payments made by Hnry will automatically be claimed on your behalf. See more
- Advertising - Any costs of advertising your work or services in any way e.g. print or online advertising.
- Charitable Donations - Any donations to a registered charity as a part of your business activity (make sure you upload your receipt that has the charity's registration or GST number).
- Cleaning - Any cleaning costs incurred for keeping your office or work-space tidy. See more
- Consulting & Accounting - Expert advice used to generate income or support your business. See more
- Cost of Goods Sold - Costs that are incurred for you to produce your work or provide your services (outside of computer equipment) e.g. Materials used in the creation of a product for sale. See more
- Entertainment - The cost of entertaining clients to grow and develop your business, promoting goods and services. It's worth noting that only 50% of the claim can be accepted as an entertainment expense and must indicate multiple persons present. Click here for more entertainment rules.
- Equipment (Purchase) - Any equipment purchased that you need in order to do your job e.g. Mobile phone, handsets, software and upgrades, camera equipment, tools. Any equipment over $5000 will be depreciated over 3 years - we take care of this for you. See more
- Equipment Rental - Any equipment hired for business purposes.
- Freight & Courier - Any business-related postage or freight costs e.g. stamps, courier fees
- General Expenses - Any miscellaneous office or business expenses that you cannot classify anywhere else. You cannot claim glasses/spectacles or the costs of establishing or getting into a business (if you're GST-registered, you can claim GST on the set-up costs).
- Home Insurance - You can claim a proportion of Home Insurance cost based on the size of your home office. See more
- Home Office Equipment - Any equipment or assets you purchase for your home office. Any equipment over $5000 will be depreciated over 3 years - we take care of this for you.
- Internet/Landline - Your internet or landline phone bills. See more
- Investment Rental Expenses - Any expenses related to your investment property. See more
- Legal expenses - Any business-related legal advice fees that you might incur. You can claim 100% legal fees up to $10,000/year
- Light, Power, and Heating - Any utilities costs relevant to your office or home office. See more
- Mileage - Mileage costs specifically related to your line of work. You will need to keep a logbook in order to claim mileage. See more
- Mobile Phone Bills - Mobile phone bills for business use. If the phone is mixed use (i.e. for business and personal) then you may only claim a percentage (eg 40%). See more
- Motor Vehicle Expenses - Vehicle maintenance costs specifically related to your line of work. For both business and personal use, you may only claim up to 25%. See more
- Motor Vehicle Purchase - You can claim a motor vehicle purchased for business use. See more
- Office Expenses - Any general expenses related to your office or home office. See more
- Petrol - You can only claim the full amount if the vehicle is used solely for business purposes. If the vehicle is mixed use (personal and business) then you can claim up to 25% of the petrol costs. Make sure to include the percentage being claimed in the Expense description. See more
- Printing & Stationery - Any printing and stationery that is a business-related expense
- Private Office/Desk Space Rental - Use this category when you are renting an office or private desk at a commercial premises or co-working space. This category is not used for your home or living space rental.
- Professional Insurance - Professional Indemnity Insurance, Public Liability Insurance, and insurance of business assets. See more
- Refunds - Any refund made to a customer, i.e. refunding a previous overpayment
- Rent/Mortgage Interest/Rates - Any rental costs for your workspace, any rates or council costs, or mortgage interest. See more
- Repairs and Maintenance - Necessary repair and maintenance work specifically relating to your home office space. For non-office related repairs, you can file these as 'General Expenses'. IRD may ask you to justify the expenditure so be careful what you claim.
- Research & Development - Any activity you conduct for business purposes that involves researching your particular industry, or developing new techniques or skills. See more
- Short-term Rental Expenses - Use this category for any utility expenses when renting your property as a short-term rental or AirBnB. See more
- Subcontractors - Any business expenses where you have hired sub-contractors, third parties or employed other service providers to carry out work for you.
- Subscriptions - Any recurring subscription costs for business-related products e.g. recurring software costs, online magazines, newspaper magazine subscriptions, licensing fees.
- Taxi/Parking/Public Transport - For business purposes only. These costs cannot be claimed for travel to your regular place of work.
- Travel (National & International) - Costs incurred when you're away from home on business. See more
If you are still unsure on the specific rules, here is a link from business.govt.nz that is helpful and makes everything really easy to understand.
Ready to get expert support around your expenses? If you're ready to hire Hnry, sign up below: