Reply To: Hi, Would someone be able to explain what I can claim at the end of the financial year and what evidence/records I need to keep? Do I need to keep receipts of absolutely all my expenses or only bigger items such as a computer etc? What do I need to claim for power and rent as I am working out of my own home (which my partner owns) ? I will be using Xero as my accounting software.

Hey there,

It’s better to keep all receipts above $50.
You can scan & load all receipts into Xero for future auditing -no need to keep paper receipts. (, electronic receipts are allowed in NZ)
If you run your business from home you can claim a deduction of 50% of the rental of a telephone landline if this is also your private line. Business-related toll calls are 100% deductible.
rent cost – Square metre rates for each tax year
For the tax year that you’re claiming business expenses for, make sure you’re using the correct square meter rate. Check IRD -https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/using-your-home-for-your-business.
Hope it helps.

Cheers,
Bianca