All Blogs

As we approach the end of the financial year, now is the time to take stock and make sure your tax position is working as hard as it can for you.

Below are some practical tax planning considerations to review and action before 31 March. If we can help you prepare for year-end, or there is anything detailed here you are unsure of (as some items are subject to eligibility criteria) please get in touch, we’re happy to help.

For Business Owners

A. Income recognition

1. Debtors and bad debts

  • Review your outstanding debtors list.

  • Write off any debts that are unlikely to be recovered and have been chased for a reasonable period.

  • If a bad debt is not written off before 31 March, you still need to pay tax on income you will never receive.

Keep records of the steps taken to recover the debt in case of an IRD review.

Writing off a debt does not prevent you from continuing recovery action, any future recovery will be taxable when received.

2. Stock and work-in-progress

  • Complete a physical stocktake and record trading stock at cost as at 31 March.

  • Write off and dispose of any obsolete or unsaleable stock before year end.

For work in progress (WIP):

  • Uncompleted or unbilled work must be recorded at cost as WIP.

  • Write off any unrecoverable WIP costs, otherwise you will pay tax on income you can never bill.

B. Claiming expenses

1. Investment boost

Businesses may be eligible for a 20% deduction on the cost of new (or new to New Zealand) business assets that are purchased, or finished being constructed, on or after 22 May 2025.

To help us assess eligibility, please collate and provide:

  • A description of the asset.

  • The purchase invoice showing the purchase date and proof of ownership.

  • Confirmation that the asset is capable of being used in New Zealand.

This deduction is subject to specific conditions, so please talk to us before assuming eligibility.

2. Repairs and maintenance

If possible, bring forward repairs or maintenance work and complete it before 31 March.
If the work is completed before year end (even if invoiced later), the cost can generally be accrued and claimed as a deduction.

3. Write off obsolete fixed assets

  • Review your fixed asset register.

  • Write off any assets that are obsolete, non-functional, or disposed of during the year.

4. Low-value fixed assets

  • Assets costing $1,000 or less (GST exclusive) may be immediately deductible (subject to conditions).

  • Please provide asset details so we can confirm eligibility.

For assets over this threshold, send us the invoices so the correct depreciation rate can be applied.

5. Vehicle expenses and logbooks

If a vehicle is not used 100% for business, a logbook (for 90 days) is required to determine the deductible business-use percentage.

Travel between home and work is generally considered private.

A logbook needs to be updated every 3 years.

6. Staff bonuses and holiday provisions

  • Bonuses confirmed before 31 March and paid within 63 days after year end can be accrued and deducted.

  • Holiday pay and long-service leave payable within 63 days of year end may also be deductible.

7. Charitable donations with IRD approved done status

  • Companies can claim deductions for donations to IRD-approved organisations, limited to net income for the Company.

  • Individuals may claim a 33% donation, rebates limited to their total taxable income.

You may wish to bring forward any donations before 31 March.

8. Prepayments

If cashflow allows, prepaying certain expenses before 31 March may allow an earlier deduction. The following are common examples of what you can claim when expenses are prepaid in advance:

No dollar limit (no limit on months prepaid):

  • Accounting fees

  • Postage and courier

  • Rates

  • Printing and stationery

  • Road user charges

  • Subscriptions (newspapers, professional journals)

Limits apply to:

  • Advertising – $14,000 limit. Maximum 6 months payable in advance

  • Insurance – Annual premium cannot exceed $12,000. Maximum 12 months payable in advance

  • Rent – $26,000 limit. Maximum 6 months payable in advance

  • Service and maintenance contracts – Annual total cannot exceed $23,000. Maximum 3 months payable in advance

  • Professional association subscriptions – Annual subscription cannot exceed $6,000. Maximum 12 months payable in advance

  • Telephone – No dollar limit. Maximum 2 months payable in advance

  • Travel – $14,000 limit. Used within 6 months after balance date

Please call if you’re considering any of these prepaid expenses, as the rules around eligibility are detailed and specific.

C. Other compliance matters to action before 31 March

1. GST return adjustments

Before filing your March GST return, check whether any GST adjustments are required (for example, “overs and unders”).

Please refer to the year-end reporting letter for any adjustments or call us to confirm, if you are unsure.

Please collate copies of your previous GST returns and workings for the year ended 31 March.

2. Subvention payments

If losses have been offset between companies in a group, ensure any required subvention payments are arranged before 31 March.

For Property Investors

1. Selling property

If you’re planning to sell or expect settlement before 31 March, please contact us to consider the following:

  • Bright-line Test implications

  • Depreciation recovery (if applicable)

  • Whether timing the sale before or after year-end makes sense

2. Repairs and maintenance

  • Complete any repairs before 31 March where possible.

  • Repairs must be paid for before year-end to claim any tax deduction.

3. Depreciation

  • Commercial property owners may be able to maximise deductions by separately identifying fit-out items. These items are depreciable.

  • Residential property owners may be able to depreciate chattels separately.

Please note: building depreciation is no longer available.

For Trusts

1. Trust review

Provide us with any updates or variations to your trust deed following a legal review.

Please contact your lawyer if your trust deed hasn’t been reviewed to comply with Trust Act 2019.

2. Trustee changes

If trustees have changed during the year, please provide all supporting legal documentation.

3. Beneficiaries coming of age

Please let us know if any beneficiaries turned (or will turn) 16 before 31 March.

  • Distributions to beneficiaries aged 16 or older are taxed at their personal tax rates.

  • Income retained in the trust is taxed at the trustee rate.

If you’d like help working through any of these areas, please get in touch.