Tax return 2024: a complete guide

Tax season is around the corner, but fear not, we’re here to break down everything you need to know about your tax return for 2024. Whether you’re a seasoned business owner or new-to-business, this guide will equip you with the knowledge and resources you need to navigate the process smoothly.​

Your tax return for 2024 is due 7th of July 2024. Mark this key date on your calendar. However, you may be eligible to get an extension of time (EOT) if you have an accountant or a tax agent. In this case, your return won't be due until 31st of March 2025. ​

If you’re unsure when your tax return is due, always consult with your accountant. Or check out our key date calendar on the website.​

You can either file your tax return yourself online using myIR. What you’ll need to do is just gather your income details, expense receipts, and any other relevant information. Or you can file your 2024 tax return through your accountant. If you are not working with an accountant, book a call with us to discuss your situation and see how we can help.​

In New Zealand, the tax year ends on 31 March. However, the deadline for filing your tax return is generally the 7th of July. For example, you don’t need to file your 23/24 tax return until 7th of July, 2024. This provides a window of opportunity to gather your financial records and ensure accurate reporting.​

However, there are some exceptions. If you're working with an accountant or a tax agent, you may be able to get an extension of time (EOT) to file your tax return. The deadline might be extended to the 31st of March, the following year. For example, if you’re already working with Beany and eligible for an EOT, your tax return won’t be due until 31st of March, 2025. ​

If you’re not sure when your deadline is or whether you’re eligible for an EOT, we recommend you consult with your accountant. If you’re not working with one, talk to one of our team members. ​

To file your tax return for 2024, you’ll need the following information:​

It’s important to note you need to keep your records for at least 7 years in case you’re audited by the IRD. We have the ultimate fact sheets on New Zealand tax returns if you’re interested to learn more.​

Missing tax deadlines can lead to penalties and interest on unpaid tax. Late payment penalties start at 1% and increase to 5% within a week. It might even trigger an IRD audit in some cases.  If you can’t make the payment in time, contact the IRD as soon as possible to discuss potential options and avoid further penalties. IRD has more information on late payment penalties.​

With Beany, you can stay on top of your tax deadlines - you’ll receive notifications from us when there is a deadline approaching so you can stay on top of it. We also have the key date calendars, mark those important dates on your calendar.​

No matter what your business structure is, there are several taxes you’ll need to pay as a business owner: income tax, GST (if you’re GST registered), PAYE (if you pay wages). If you choose to operate your business through a company structure, read our guide on company taxes. If you need more information on what taxes you need to pay, we recommend you seek professional advice.​

In New Zealand, provisional tax is a requirement for some taxpayers who earn income that’s not subject to PAYE - it’s a way for self-employed individuals, those with investment income, and companies as well as trusts to stay on top of their income tax as their income can fluctuate significantly. By making incremental payments, they can effectively manage their tax liability and avoid a large, unexpected tax bill at year-end. ​

Read more: Residual vs Provisional vs Terminal taxes - confused?​

If your annual turnover is above $60,000, you’re required to register for GST. If you don’t meet this threshold, you still can choose to become GST-registered voluntarily. Once you’re GST-registered, you can claim back the GST proportion you’ve paid on your business expenses. The decision of whether to voluntarily register for GST depends on your specific circumstances. Factors like your business structure, industry, profit margins, and growth projections all come into play. It’s recommended to have a chat with your accountant. ​

Read the latest news on GST regulation for businesses listing their services via a digital marketplace.​

A key requirement for claiming home office expenses is having a dedicated workspace within your home. For example, working on the dining table doesn’t make a ‘dedicated workspace’.  This space should be used exclusively for business activities and not for personal purposes. If you have a dedicated workspace, you can claim a portion of your household expenses related to that space. ​

Deductible expenses typically include a portion of your rent or mortgage interest, rates, insurance, electricity, and internet costs. Other expenses directly related to your workspace, such as office furniture and equipment, and renovation costs of your workspace can also be claimed.​

It’s important to note that you can only deduct the proportion of these expenses that corresponds to the size of your workspace relative to your entire home. For instance, if your workspace occupies 10% of your home's floor area, you can claim 10% of the eligible expenses. However, there are other methods to calculate your home office expenses. If you’re interested in this topic, we have a blog on claiming home office expenses and how to calculate it. ​

Given the nuances of home office deductions, we recommend you to consult an accountant. ​

When filing your tax return for 2024, the golden rule is: the expense must be directly related to earning your business income. Some common deductible expenses are:​

However, there are some no-go zones. For example, a holiday is generally not tax deductible. And those personal gym memberships, while good for your health, won't impress the IRD. The key is to keep it relevant to your business activities and keep those receipts organized.​

The rules can be a bit fuzzy sometimes when it comes to claiming business expenses (e.g. entertainment expenses). That's where an accountant comes in - they’ll guide you through the rules and ensure you’re claiming all eligible expenses in order to minimise your tax bills. Book a call with us to discuss more.​

Download: Business expenses checklist​

Your tax obligations remain the same if you made a loss. This means, you still need to file tax returns for 2024 if you made a loss in 2023. The form you'll need to file depends on your business structure. Sole traders need to use IR3 form, while companies use IR4. ​

Filing a tax return when your business has incurred a loss allows you to carry the loss forward - you’re able to offset the current year’s loss against future profits to reduce your tax liability in the following year.​

Here is an example. Even though Sarah's bakery didn't make a profit, she still needs to file her 2024 tax return by 7 July 2024. By filing her tax return and declaring the $5,000 loss, Sarah can carry this loss forward to future years. If her bakery makes a taxable profit of $100,000 in 2025, she can offset the $5,000 loss against this profit, effectively reducing her taxable income to $95,000 and lowering her tax bill.​

If you need more clarification on this topic, talk to your accountant. ​

Let's face it, tax can be confusing. A good accountant is worth their weight in gold. They can help you navigate the complexities, ensure you're claiming everything you're entitled to, stay compliant with the rules and regulations, and keep you on the right side of the IRD. Book a call with one of our team members to explore how we can work together.​