Let’s talk tax claims (and clear up the confusion). Tax claims are just a way to reduce your taxable income by claiming back the business costs you’ve already paid for. Whether you’re a sole trader, a company, or even running a not-for-profit, claiming valid business expenses helps you keep more of what you earn. But here’s the thing — not everything people think they can claim actually qualifies. Let’s break down some of the common myths (and keep you on the safe side with IRD):

Clothing:

Not all workwear is claimable, this one trips up a lot of new business owners. You can claim:

Branded clothing with your business logo
Mandated uniforms
Health & safety gear (like hi-vis, steel-capped boots, gloves, masks, etc.)

But you can’t claim:

Business suits or officewear (even if you only wear it to meetings)
Clothing that could be worn outside work (that includes plain black pants or work shoes!)
Glasses — prescription or sunglasses — unless they’re required PPE

Vehicles:

Only business use counts. The rule here? If your vehicle is 100% business-owned and used only for business, the full running costs can usually be claimed. But… if there’s any personal use involved — like school drop-offs, weekend drives, or running errands — it gets more complex. You may need to:

Adjust your expense claims for private use
Or pay Fringe Benefit Tax (FBT) if it’s a company vehicle used personally

Hot Tip: Keep a logbook to track business vs. personal mileage, so you can claim correctly.

Entertainment:

Only sometimes deductible… Entertainment expenses are split into two buckets — 100% deductible and 50% deductible (when there’s a private element involved). Here’s a quick guide:

100% deductible:

Meals while travelling for work
Conference catering
Freebies and samples
Food/drink at promotional events

50% deductible:

Meals and drinks with clients or staff
Corporate boxes or team-building events
Holiday accommodation, boats, or gifts with food/drink

Hot Tip: Keep solid records — pop the meeting in your calendar, note who was there, and why. That way you’re covered if IRD ever asks.

Conferences vs. Holidays

Conferences are a great investment in your business — just don’t mix personal time with business claims.

You can claim expenses for:

The days you’re actually attending business sessions
Flights, accommodation, and meals during those days

But you can’t claim the long weekend or holiday you’ve tacked on afterward for a bit of R&R. Keep a record of what was business vs. personal (your calendar is your best friend here!).

Assessing these factors can help you determine whether it's time to hire a bookkeeper to ensure your financial health and support your business growth.

By dedicating some time to familiarise yourself with these tools, you can maintain accurate financial records, ensuring a clear picture of your financial health without the need for professional bookkeeping services.

At Ako Cash Flow, we’re not just bookkeepers—we’re your financial empowerment partners. Our mission is to give you the confidence and skills to manage your own books with ease. With our tailored tools and expert guidance, you’ll learn how to track income and expenses, master cash flow, and make smart financial decisions that support your goals. We believe that financial independence is key to long-term success. That’s why our approach focuses on education and support, enabling you to take control of your personal or business finances and build a stronger financial future. Let's empower your journey together!

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