Income tax and GST treatment of meal expenses by self-employed persons – Affinity Accounting

IRD recently issued an interpretation statement on the tax treatment of meal expenses for self-employed people.

The authority is clarifying what can and can’t be claimed by a self-employed individual as a meal expense. The statement explains that meals for a person eating alone are not deductible, as they are a personal expense. Everyone has to eat, regardless if they are self-employed or working for someone. IRD also highlights that this applies to single-person meal expenses when travelling out of town, where the expense has been claimed by a lot of people previously.

To make sure you are compliant with IRD, check with Affinity Accounting to see what meal expenses you are able to claim and not, as the information given by the authority is not black and white. We can help you understand what you can claim as a self-employed individual and how you can determine if something cannot be claimed as a meal expense. Get in touch with us if you have any questions!

Affinity Accounting is a Wellington-based accounting firm providing services in tax, advisory and Xero. We are your partner in business and help you ensure that your organisation is financially stable and prosperous. Our team helps individuals understand complicated legislation, such as the meal expenses for self-employed persons mentioned above. Contact us if you would like to find out more!

For more information, visit our website at https://affinityaccounting.co.nz/.