Using your home for business? Sort your business income tax with New Zealand’s leading accounting experts Tutbury & Associates Limited.
If you’re self-employed or run your own business from your home, you can claim the part of your house you use for business as an expense in your tax return.
Many small business owners utilise an area in the family home for work purposes. “If you are doing this, you are able to make a claim for the area so long as you keep a full record of all expenses you wish to claim,” says Kelly Tutbury, Accountant and Managing Director at Tutbury & Associates Limited.
You can claim for any space you use primarily for your business. This could be a home office, your garage if you use it to store stock or your workshop.
If there is not separate area for the business, “you will need to take into explanation criteria such as the amount of time spent on income-earning activities and the area used at home,” adds Kelly. No deduction is permitted for any private or domestic expenditure.
You can claim a portion of the household expenses, such as the insurance, power and rates. You must keep invoices for these expenses. “You can also claim a percentage of the interest you pay on your mortgage. you can’t claim repayments of the principal
You will also need to remove the GST content of each expense and claim it separately in your GST return, if you are registered for GST.
“At Tutbury & Associates Limited we can assist you in working out your taxable income by taking all your expenses off the total amount you earned. You pay tax based on this number. If your expenses are high, your income will be lower and you’ll pay less tax,” advises Kelly.
About Tutbury & Associates Limited.
Tutbury & Associates Limited has worked hard to build their reputation of excellent customer service by working interactively with their clients and making sure that their clients get value for money. They are ideal for ideal for trades people, or anyone who wants to grow their business.
Contact Tutbury & Associates Limited:
Phone: 07 576 2194
Address: 23 Myres Street Tauranga
Phone: 0274 587 724