Can NZ sole traders claim bank charges and loan interest?

Yes, New Zealand sole traders can claim bank charges and interest directly related to their business activities. **Deductible bank charges:** - Monthly business bank account fees - Transaction fees on a business account - Payment processing fees (Stripe, PayPal, Square fees) - Foreign exchange fees on business transactions - Cheque fees **Deductible interest:** - Interest on a business loan used to purchase business assets - Interest on a business overdraft - Interest on a vehicle loan if the vehicle is used for business **Not deductible:** - Personal account fees - Interest on personal loans, credit cards, or mortgages (unless a proportion relates to a home office or business) - ACC levy payment interest (ACC is not a business expense) If you use a single account for both personal and business transactions, you must apportion — only the business proportion of fees and interest is deductible. This is a common situation for sole traders without a dedicated business account.

• Business account fees and payment processing fees are deductible
• Interest on business loans and overdrafts is deductible
• Personal account fees and personal loan interest are not deductible
• Mixed-use accounts: apportion business proportion only
• Keep monthly bank statements as supporting records