Raising expenses in Hnry is straightforward, user-friendly, and only requires some basic information and a photo/screenshot of proof of purchase you're looking to claim tax relief on. Some important things to remember:
- only raise an expense for payments that have been paid, not a whole year's invoice featuring upcoming or forecasted payments.
- you can only claim tax relief on an expense once
Here's how you can raise an expense in Hnry:
- Navigate to the 'Expenses' tab on your Hnry Dashboard.
2. From there, you can select 'Business Expense' or 'Client Chargeable Expense'. What's the difference between the two types of expenses?
- Business Expenses help to reduce the amount of your income that you are required to pay tax on at year-end (N.B. IRD don't pay you back the cost of your expenses).
- Client chargeable Expenses (or reimbursements) are costs you've incurred that are paid back to you in full by a client, and are not subject to tax deductions.
3. Once you've chosen the expense type, you'll be asked to upload a photo of the receipt or a PDF of a bank statement (depending on the expense category). You can upload files in these formats: JPG, PDF, and PNG.
4. Next, choose the date the expense was created. For expenses incurred over the course of a month (say, petrol costs), you can choose the last day that you were charged for that expense.
5. For business expenses, choose the most accurate expense category that describes this type of expense. You can find a full list of categories here.
6. You'll then just need to provide a detailed description of the expense, and list the total price of the expense (and whether or not the price includes GST).
And that's all there is too it!
If you'd like to see a visual representation of the expense process in Hnry, check out this video walkthrough: