Web Developer

Tax guide for New Zealand freelance web developers and software engineers

Allowable Expenses

• Software & development tools — IDEs, hosting, cloud services, SaaS subscriptions, GitHub
• Hardware — Laptop, monitors, keyboards, peripherals — business proportion
• Home office — NZ$5/week flat rate or actual proportion
• Professional development — Online courses, certifications, technical books
• Domain names & hosting — Client project hosting, personal portfolio

Tax Tips

• Software licences and SaaS subscriptions are typically 100% deductible
• Assets under NZ$1,000 can be immediately expensed rather than depreciated
• Keep a log of your home office hours if claiming the actual proportion method

Frequently Asked Questions

Can NZ web developers claim software as an expense?

Yes. Business software subscriptions, development tools, and hosting costs are fully deductible expenses for sole trader web developers. Annual software purchases can be claimed in the year of purchase.

What about claiming a new laptop?

If the laptop costs over NZ$1,000 and is used partly for personal use, you must depreciate it over its useful life (typically 3 years) and claim only the business proportion. If it's under NZ$1,000 and used primarily for work, you can claim it in full immediately.