Top Tax Deductions for Self-Employed Kiwis in 2025
If you're self-employed in New Zealand, claiming the right tax deductions can make a big difference to your bottom line. As we step into the 2025 tax year, it's more important than ever to know what expenses you're entitled to deduct — and how to stay on the right side of the IRD.
1. Home Office Expenses
If you run your business from home, you can claim a portion of your household costs. This includes rent or mortgage interest, electricity, internet, and even home insurance. The IRD provides a simplified square metre method, or you can use the actual cost method for greater accuracy.
2. Vehicle and Travel Costs
Use your car for business? You can claim a deduction based on the business use portion — either using actual costs or a per-kilometre rate. Don't forget about work-related travel expenses like accommodation and public transport too.
3. Business Supplies and Tools
Anything you purchase to operate your business — from software subscriptions to office stationery and industry-specific tools — can typically be deducted in full if used solely for business purposes.
4. Professional Services and Training
Fees paid to accountants, business advisors, or even legal consultations are tax-deductible. Training courses relevant to your business can also qualify — as long as they don’t relate to a completely new field.
5. Marketing and Advertising
Costs related to promoting your business — like website hosting, graphic design, or social media ads — are deductible. Even business cards and flyers count.
6. Insurance Premiums
Insurance policies that protect your business — such as public liability or professional indemnity — are eligible deductions. Personal insurances generally are not unless linked directly to business risk.
Tips to Stay Compliant
- Keep detailed records and receipts for all claims.
- Separate personal and business expenses — ideally with different bank accounts.
- Use accounting software to track deductions in real time.
Tax time doesn’t have to be stressful. With a bit of planning and the right information, you can reduce your tax bill and reinvest in your business. If you're unsure, it's always smart to consult a tax advisor familiar with NZ's self-employment rules.
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Kiwi Money Matters is written and maintained by a New Zealand-based writer with hands-on experience in finance and accounting since 2015.
All posts are personally researched, written to ensure clarity and trustworthiness for everyday Kiwis.
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