Builder / Carpenter

Tax guide for New Zealand self-employed builders, carpenters, and building contractors

Allowable Expenses

• Tools & power tools — Hand tools, saws, drills, nail guns, measuring equipment
• Vehicle expenses — Ute or van for materials and site travel
• Licensed Building Practitioner (LBP) — LBP licence renewal fees and MBIE requirements
• Scaffolding & equipment hire — Site equipment hire costs not billed to clients
• Safety gear & PPE — Hard hat, high-vis, safety boots, fall protection

Tax Tips

• LBP licence fees are a deductible professional expense each year
• Site safety costs are 100% deductible — never skip PPE claims
• Materials used on jobs are a cost of goods sold — keep all supplier invoices
• Equipment hire costs for jobs not billed to clients are fully deductible in the year of hire

Frequently Asked Questions

How do NZ builders claim their vehicle?

If your ute or van is used exclusively for building work, you can claim all running costs. If there is any private use, use the logbook method to record business kilometres and claim only the business proportion of actual costs.

Are LBP licence fees deductible for NZ builders?

Yes. Licensed Building Practitioner (LBP) annual licence fees are a fully deductible professional expense for self-employed builders and carpenters.

How do NZ builders treat materials purchased for client jobs?

Materials purchased specifically for a client job are a cost of goods sold and are fully deductible. Keep all trade supplier invoices with job references. Where clients supply their own materials, only your labour and ancillary costs are your expenses.

Do NZ builders need to register for GST?

If your annual building revenue exceeds NZ$60,000, GST registration is mandatory. You charge 15% GST on labour and materials, and can claim back GST on materials, tools, and other business inputs.