Lawyer / Solicitor

Tax guide for New Zealand self-employed lawyers and solicitors in sole practice

Allowable Expenses

• Law Society practising certificate — Annual practising certificate and regulatory fees
• Professional indemnity insurance — Mandatory coverage for legal practitioners
• Legal research tools — LexisNexis, Westlaw NZ, online legal databases
• Office & court costs — Court filing fees (billed to clients), professional library
• CPD courses — Continuing professional development as required by NZLS

Tax Tips

• NZLS annual practising certificate fee is fully deductible
• Trust account costs and bank charges are deductible business expenses
• Professional indemnity insurance through NZLS is mandatory and deductible
• Legal research database subscriptions (LexisNexis, Westlaw NZ) are 100% deductible professional tools

Frequently Asked Questions

Are NZLS practising certificate fees deductible?

Yes. Annual NZLS practising certificate fees are a deductible business expense for self-employed lawyers. Professional indemnity insurance and CPD costs are also deductible.

How should NZ lawyers treat client disbursements for tax?

Disbursements you pay on behalf of clients (court filing fees, search fees, etc.) and then recover are not your income — they net off against the expense paid. Only your professional fee component is your taxable income. Keep careful records of all disbursement flows.

Can I deduct legal research database subscriptions (LexisNexis, Westlaw NZ)?

Yes. Research databases essential for legal work are fully deductible professional subscriptions. Keep the invoices and ensure they are in the business name.

Do NZ sole-practice lawyers need to register for GST?

If your annual legal fees exceed NZ$60,000, GST registration is mandatory. You charge 15% GST on your legal fees (disbursements may be treated separately) and file GST returns according to your filing frequency.