Can NZ sole traders claim their phone and internet as a business expense?

Yes, New Zealand sole traders can claim the business proportion of their phone and internet costs as a deductible expense. Since most sole traders use their personal phone for both business and personal purposes, you must apportion the cost. **How to apportion phone and internet:** - Estimate the percentage of use that is for business purposes - Common approaches: track actual business calls/usage for a month to establish a pattern, or use a reasonable estimate based on how you use the device - Many sole traders claim 50-70% of a combined phone/internet plan if they use it heavily for work **Keep records:** - Phone bills or bank statements showing the cost - A brief record or calculation showing how you arrived at your business-use percentage If you have a dedicated business phone or internet line used exclusively for business, you can claim 100% of the cost without apportionment. For example: a combined phone and broadband plan costing NZ$150/month with 60% business use = NZ$90/month deductible = NZ$1,080 per year.

• Claim the business proportion of phone and internet costs
• Must apportion if phone is also used personally
• Keep records showing basis for business use percentage
• Dedicated business lines: 100% deductible
• Consider tracking a representative month to establish usage pattern