IT Consultant

Tax guide for New Zealand independent IT consultants and technology advisors

Allowable Expenses

• Professional certifications — AWS, Azure, Google Cloud, CISSP, PMP exam fees
• Software & licences — Business software, security tools, remote access solutions
• Home office — NZ$5/week flat rate or actual proportion
• Client travel — Vehicle costs at km rate or logbook method
• Professional memberships — IITP (Institute of IT Professionals NZ), industry associations

Tax Tips

• IITP membership fees are a deductible professional subscription
• Client-site travel is fully deductible — track every visit with km log
• Cybersecurity tools and software used for client work are 100% deductible
• Professional indemnity insurance is essential for IT consultants and is fully deductible

Frequently Asked Questions

Do NZ IT consultants need to charge GST?

If your annual consulting revenue exceeds NZ$60,000, you must register for GST and charge 15% GST on your invoices. You can then claim back GST on business purchases.

Can I claim professional indemnity insurance as an IT consultant?

Yes. Professional indemnity insurance protecting you against client claims arising from your consulting advice or deliverables is a fully deductible business expense.

Are cloud tools like Microsoft 365 or Google Workspace deductible?

Yes. Business productivity and collaboration software subscriptions used for client work are fully deductible in the year they are charged.

Can I claim home office costs as an IT consultant?

Yes. IRD's primary method is the floor area proportion — calculate the percentage of your home's total floor area used for your office and apply that to your actual household costs (rent or mortgage interest, power, internet, rates). Keep records of your working space dimensions and your household bills.