Tradies: the expenses you’re entitled to claim

Your vehicle

Claim the business share of running costs: fuel, repairs, insurance, registration and depreciation. Set the business percentage with a logbook kept for at least 90 days every three years, or use IRD’s published kilometre rates if you would rather track distance. A sign-written ute used only for work can be close to 100% business; a family car is not.

Tools, equipment and the ute itself

Items costing under $1,000 are deducted in full in the year you buy them. Larger purchases are depreciated over their useful life. New assets bought on or after 22 May 2025 also qualify for Investment Boost, an extra 20% deduction in the first year. Keep the receipts, and tell us if an asset is sold or written off.

Clothing and safety gear

Protective clothing and equipment, such as steel-caps, hi-vis, gloves and harnesses, are deductible. Ordinary clothing that could be worn outside work is not, even if you only wear it on site.

Phone, internet and home office

Claim the business share of your phone and internet. If you run the business from home, a share of rent or mortgage interest, rates, insurance and power can be claimed based on the area you use, or with IRD’s square-metre rate method.

Withholding tax on contract payments

If tax is deducted from your contract payments, known as schedular payments, it is not a final tax. It counts as tax already paid when we file your return, and if too much was deducted you get a refund. Choosing the right rate on your tax rate notification form avoids lending IRD money all year.

GST and records

Register for GST when turnover passes $60,000, charge it on every job and claim it on materials. Keep records for seven years. A receipts app connected to Xero or MYOB makes that painless, and it is exactly what we set up for trades clients.

General information only. Talk to us about your own situation before acting on it.