What expenses can I claim?

Can I claim the cost of prescription glasses?

One of the most frequent questions we get asked as accountants are  “What expenses can I claim?

The answer to this is basically “Anything that you spend which is directly related to you earning your income”. There are some obvious expenses which are a no-brainer and then there are the ones you think “well I do need this for business”. BUT the question is did you purchase it as a result of being in business?

An example of this is your reading glasses or prescription glasses.
Many clients say “I need my reading glasses to look at the computer so they must be a business expense” BUT are they specifically required to earn your income? The IRD says no, this is a personal expense.

Alternatively I do believe that someone who edits books or drives trucks and needs glasses to be able to read or see in the distance does have a reason to claim and I would argue that in this case it is directly related to earning their income. So they may be able to claim glasses as a business expense. If you are not sure we are happy to talk it through with you.

Sign up to our Newsletter

Get up to date news and insights from Monteck Carter.