Posted on 28 Oct 2021
A recent statement from IRD has clarified their stance on the claiming of Food and Drink as a deductible expense in your business, especially if you are self-employed. There are three aspects to the way Food and/or Drink is treated for tax purposes and these are:
This last one is the one on which we have recently received an updated statement from IRD and is the one that will affect business owners who claim for food and drink. In the first instance, food is considered a necessity of life and a private cost therefore not deductible. Under certain business circumstances, it was considered that these costs could be claimed such as:
The following examples are in the recent statement by IRD and clarify their take on these expenses.? These examples confirm how 'picky' IRD is becoming on these issues, if you think you can claim these expenses it may be best to check with us first. IRDs Examples Rob is a self-employed engineer. Most of his work is in Auckland where he lives and he has a small workshop in North Shore, where he stores parts, the office has tea & coffee facilities and a microwave. His spouse helps with admin. ?He travels around Auckland & different cities in NZ for work.
If you need more guidance around this, please contact one of our team to discuss further. We're here to help.
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