FAQs Database Of Frequently Asked Questions

What expenses can I claim through the business

Net income or net loss is calculated by deducting annual allowable deductions from the total amount of gross income for an income year.

Annual allowable deductions are the sum of all amounts of allowable deductions incurred in an income year.

Only expenditures that relate to business will be an allowable deduction.


General Overview:

Generally speaking, item or service that is purchased in a course of carrying out business activities is deductible – meaning that item or service purchased for private use or is a substantial asset will not be deductible. However, when expenses are not completely for business use, you can claim an appropriate portion of the expense.


Employment

Expenditure from deriving salary or wages is not deductible as it has not incurred for business purposes.


Entertainment

Food, beverages, recreation, and related accommodation and transportation for business activities are 50% deductible.

The following expenses are 100% deductible:

  • Food or beverages consumed while travelling on business;
  • Food or beverages consumed at a conference or educational course;
  • Overtime meal allowance;
  • Morning or afternoon tea provided during work hours;
  • Sponsorship deals;
  • Functions or trade displays to advertise or promote a business, goods or services;
  • Food or beverage samples for advertising purposes;
  • Entertainment reviews;
  • Entertainment provided by an entertainment business;
  • Entertainment provided for charitable purposes;
  • Entertainment provided outside New Zealand; and
  • Entertainment that is taxable to the recipient, or is subject to FBT.

Interest

Only interest for funds that are borrowed to purchase business assets are fully deductible – meaning interest for funds that are for private use or a use that does not produce income is not fully deductible. Portion of interest relating to the income producing use is deductible.

Trading Stock

  • Reduction in the opening value of trading stock is deductible.
  • The value of trading stock is calculated by measuring the difference between the opening value of trading stock and the closing value of trading stock.
  • Trading stock includes:
    • Livestock; and
    • Products manufactured, produced, or acquired for manufacture, sale, or exchange purposes.

Donations

  • A third of donations above $5 are claimable.

Bad Debts

Bad debt that is written off is an allowable deduction – they can be wholly or partially written off.

Professional Services

  • Expenses from legal, accounting, or other professions alike are deductible, provided that they were a part of the business activity.
  • The following activities are not deductible:
    • Forming, registering, liquidating, or selling of business;
    • Acquiring a licence for the business;
    • Altering the capital structure of the business; or
    • Drawing up a partnership deed, or a trust deed

Bursary Payments

Bursaries or payments alike offered by employers to attract staff are deductible – whether paid to, or on behalf of, an employee or for a prospective employee on condition that they stay with the employer for a stated amount of time.

Penalties

Expenses such as penalties, bribes, use-of-money interest charges, and income tax are not deductible – including lawyers’ expenses in defending criminal or civil penalties.

Testimonials

"When I first found Consol accounting on Google I thought that they must be too good to be true. Then I talked to them on the phone and I was almost certain they were too good to be true. Luckily for us they weren’t. The customer service, price and ease of use make this company out of this world. I could not recommend them any more. They are utterly seamless to integrate and effective as can be. "

Curtis and Katie Hacon Director, FiTiki Limited

"I had put off finding an accountant for a while because of the cost and perceived hassle however after my first consult with Consol, I immediately wished I had connected with them sooner. Consol are responsive, affordable and easy to deal with. Being able to outsource this aspect of my business has allowed me to focus more energy on the parts of my work that I love. "

Dr Rebecca Herald Clinical Psychologist

"I have been most impressed with Consol accounting team since I made the switch last year. The ‘Switching over’ process was really simple, after the initial set up process I can track and log my company’s financial activity with ease and accuracy. By far the most efficient and helpful service I’ve had with accounting companies. Thank you"

Vivien Ye Aesthetic Nurse Specialist, Vivip Limited

"I started out in full-time private practice over a year ago and also registered as a limited company. I love doing my work and seeing my clients, but I soon discovered just how much time doing the financials could take up. In the first year, I worked on my own tax returns and company statements, but was unsure I had done them “right” and really wanted an accountant’s expertise and guidance. From my first phone call to Andrew Joo of Consol Accounting Limited, I could tell that this service would meet my needs. He has been quick to respond, patient with me, great at teaching lots and is a Xero master user. I find the system easy to use now, and feel encouraged to get the most out of my business and confident in knowing that I will meet my tax obligations. Compared to how long it took me to struggle at doing this on my own, there is clear value in getting the professionals to do my accounting."

Dr. T Melanie Lage, MNZCCP Clinical Psychologist, Lakes Psychology Limited

“I had been searching for an option for my accounting for my business I found Consol to be so easy to get started with the team being available at nearly every point in the day! Highly recommended all those that have busy lives and need to free up some time.”

Andre Stewart Tremains Real Estate, Bay of Plenty

"Consol are great to work with responsive when I have questions, quick to prepare any necessary document and always willing to help if there's anything I'm unsure of. Very happy to have found them."

Stefan Dyke Director, SLHE Consulting Limited

"I would genuinely recommend Consol for all your financial and accounting needs. I needed an accountant quickly to help me find my feet starting up a rapid business. I genuinely had hundreds of thoughts and questions and wanted to do things right first time ... it was all a bit daunting, exciting and a steep learning curve. Andrew Joo was so supportive as he instantly responded to all my needs and then coached me through a solution and helped me understand the minefields at first . It’s really easy now the business is booming and all my accounting is taken care of so I can enjoy the fruits of my labour. I still reach out occasionally and have the answer super quick.. thanks to Consol."

Karl Jones Director, Retail Resilience

"I had just started out in business and soon realised that someone was going to have to help me with my accounting and tax compliance functions. I was very conscious of the need to be vigilant about incurring any new costs, consequently I did a fair bit of research. I came up with the conclusion that I could get everything I wanted, under one roof, from Consol Accounting, at the most competitive rate I could find on the market. It was a win-win. After joining their team I discovered there were a lot of loose ends to sow-up before I could start functioning effectively, and focus solely on running the business side. Andrew, the Founder from Consol Accounting, was an absolute God-send. He was very personal and approachable, and made setting everything up from scratch so easy and so quickly. I’ve basically been running on auto-pilot each month ever since. Just as I had planned. Thanks for your service, guys, best decision I made."

Andre Illemann Like No Other Limited, trading as GoodMooty

"I operate 3 businesses. As a busy owner I needed reliable accountant. I have been using Andrew as my accountant almost for a year and this is my second accountant. I commited transition as one of my friends recommended him and now I thankful to him. Andrew and his team provide a prompt sound and reliable service that is always professional. Andrew is always on hand to answer my queries and it is very professional and prompt in replies even on weekends and publicholidays. He has wide range of knowledge and experience in service of accounting and taxation. He has been helping me out with tax deduction and meximisation of profit. I can highly recommend him to others as he is very motivated and trusted. I would like to make longtime relationship with him and his team."

Steve Kong Director, Katsubi Hamilton & Tauranga

"When I need to get help with my finances and taxation since starting my own business, Andrew at Consol Accounting has advised me on the right approach. Professional and a great experience overall, I strongly recommend Consol Accounting to everyone who needs to get support for taxation."

Michael Park Director, Renewcar East
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