Do you use a desk, computer, work area or other facilities at home to run your business?

If you do, the current tax legislation allows you to reduce your tax liability, offsetting some of the cost of your home expenses. Inland Revenue has provided a new option to determine how much you can reduce your tax by.

This simpler process has three steps:
  1. Calculate the proportion of the home used for business purposes and multiple this number by IRD's home office rate; then
  2. Add the mortgage interest payments / rent payments and rates payments (for the appropriate financial year) and multiply this number by IRD's second home office rate; then
  3. Add the results of (1) and (2) together
This new option is available from 1 April 2017.
Inland Revenue is working to simplify many of it's rules, requirements and interpretations. However, if you have questions about managing your tax liability, we recommend you speak with one of our tax specialists by calling 407 7117.