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Thread: Sole Trader - Claiming Expenses

  1. #1
    Join Date
    Jan 2015
    Location
    Japan
    Posts
    13

    Default Sole Trader - Claiming Expenses

    Hi,

    I am a bit confused about my existing tax return process.

    Here is the case:
    1. I am a sole trader
    2. I use my house as home office for business
    3. I am under employed as a contractor
    3. I get monthly payment (not salary) from my employer
    4. I drive to the same workshop to work everyday
    5. This will be my only job in the upcoming financial year

    I read a statement on IRD website stated any cost for travelling from home to office/work place cannot be an expense in tax return.

    Indeed, I am travelling from "home" to office, meanwhile, I am travelling from one office to another office(workshop)...

    So my question is, the fuel cost I spent for travelling from home office to workshop...will that be an expense?

    Thanks.

  2. #2
    Join Date
    Dec 2015
    Location
    NZ
    Posts
    61

    Default

    Quote Originally Posted by astroboy View Post
    Hi,

    I am a bit confused about my existing tax return process.

    Here is the case:
    1. I am a sole trader
    2. I use my house as home office for business
    3. I am under employed as a contractor
    3. I get monthly payment (not salary) from my employer
    4. I drive to the same workshop to work everyday
    5. This will be my only job in the upcoming financial year

    I read a statement on IRD website stated any cost for travelling from home to office/work place cannot be an expense in tax return.

    Indeed, I am travelling from "home" to office, meanwhile, I am travelling from one office to another office(workshop)...

    So my question is, the fuel cost I spent for travelling from home office to workshop...will that be an expense?

    Thanks.
    First of all you need to be sure wether you are self employed or employed
    https://www.ird.govt.nz/forms-guides...-employee.html
    In usual circumstances where you use your home as your office and travelling to multiple clients would constitute as business travel but in your case since you are working at the same place for the same client and in your job you behave more like an employee, IRD would treat you as one. It always pays to seek proper advise.

  3. #3
    Join Date
    Jan 2015
    Location
    Japan
    Posts
    13

    Default

    Your point of view is fair to be honest.
    It's better not to make the claim on grey areas or on something which is unsure. Thank you for your comment

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