Tired of manually figuring out costs for your tax claims?
Inland Revenue has standard rates to make things easier. These preset amounts mean you don't have to hunt down receipts for common expenses, saving you a lot of time. Here's what you can claim using standard costs:
· Business use of home: $53.10 per square metre of your home office space.
· Homestay costs: $61 per day if you own the property; $55 per day if you rent the property.
· Boarders: Claim $231 per week for each boarder you accommodate. Note this is only if you provide meals. It doesn’t apply to ordinary flatmates.
· Childcare providers: $4.45 per child per day; $435 annual fixed administration fee. The benefits of standard costs include:
· Convenience: No need to collect and store receipts for specific expenses.
· Efficiency: Saves time on expense calculations and record-keeping.
· Simplicity: Provides clear and readily available rates, which Inland Revenue revises every year. Inland
Revenue's standard rates are a quick and easy way to claim common business expenses. You don't have to use them if your actual costs work out better. Just do a quick check to see if it's worth the time and hassle of keeping all your receipts.
