If your ability to keep accurate records this past year has been found wanting you may have found it somewhat difficult putting all your paperwork together, potentially missing out on claiming expenses back.

If this sounds all too familiar the beginning of the new tax year could provide the perfect opportunity for you to implement good record keeping habits.

From the beginning of a new tax year, start filing your statements, invoices, GST returns and interest statements from the get go. These records need to be kept in order and up to date so ensuring you have an appropriate filing system, whether it be manual or computer based, is paramount. Records you need to keep include:

• receipts or invoices for all claims
• interest and dividend statements
• a record of rental income and expenses
• purchase and sale agreements (for disposal of investment assets).

What can I claim?

You can claim most of your business expenses, including:

• running costs of using a vehicle for work purposes, transport costs and business travel
• training, courses and personal development
• rent paid on business premises
• depreciation on items such as your computer and office furniture
• part of any household expenses if you use your home for your business, eg, mortgage interest, telephone and electricity
• interest on borrowing money for the business
• some insurance premiums
• work-related journals and magazines
• membership of professional associations
• work-related mobile phone, stationery and uniforms
• tax agent's fees.

Whilst completing your own returns can save on fees, the knowledge and expertise a tax agent can offer with regard to what you can and can't claim may in fact end up saving you money in the long run.

For more information on record keeping and claiming expenses check out the IRD's Smart Business guide or contact Lawrie for a free consultation.