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

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.