New Square Rate Option for Claiming Use of Home Claim Expense for 2018
A new method will be available for the 2017-18 and later income years to calculate the expenses you can claim for using your home as an office. This method will use rates that Inland Revenue will determine based on the average cost of utilities per square metre of housing, but excluding mortgage interest, rates and rent.
You will be able to claim a portion of the mortgage interest, rates and rental costs that you paid during the year based on the percentage of floor area being used for business purposes.
The square metre rate for the 2017 - 2018 income year is $41.10 per square metre.
You still need to give me your annual mortgage interest /rent but you don’t need to give me information on your utilities.
Cristina Canard is the principal accountant at Apex Accountancy Ltd. Cristina keeps up to date with all the relevant tax changes in New Zealand.