Tax strategy playbooks / landscaper

Tax strategies for NZ tradies

$60k–$150k/yr · 5 strategies

Builders, electricians, plumbers, landscapers — trades businesses run on vehicles and tools. Those two categories alone contain some of the most accessible tax strategies for NZ sole traders, but ACC levies and home-office claims are regularly overlooked on top of them.

General information, not tax advice. Worked examples use fictional personas; figures are illustrative.

01

Vehicle method: logbook vs kilometre rate

Worked example
Situation

Dan runs his ute between jobs all over Christchurch, invoicing around $30k a year. Fuel, insurance and repairs were well past the point where the per-kilometre rate told the whole story.

What they did

He kept a logbook for 90 days, the IRD minimum, to establish his actual business-use percentage.

Result

That percentage now applies to his real running costs, which for heavy business use can beat the kilometre rate. His accountant checked the switch made sense before he changed methods.

Illustrative example — not a real customer. Figures are based on your numbers and rounded.

Legal basis
  • Income Tax Act 2007 ss DE 6–DE 12; OS 19/04 (KM 2026) — kilometre rates for the 2025-26 income year

PayWren finds this automatically: connect your invoices and expenses and the tax engine flags this strategy when it applies to your numbers, on the Solo plan.

02

Investment Boost (Budget 2025)

Worked example
Situation

Tama wires new builds around Hamilton and bought new test gear after 22 May 2025, each item over $1,000 excl-GST.

What they did

His accountant applied the Investment Boost, an extra 20% deduction in year one on top of normal depreciation, and confirmed each asset was new and qualified before filing.

Result

That brought a fifth of the asset cost forward as a year-one deduction instead of waiting on the depreciation schedule.

Illustrative example — not a real customer. Figures are based on your numbers and rounded.

Legal basis
  • Budget 2025, Investment Boost — IRD guidance pending IS publication

PayWren finds this automatically: connect your invoices and expenses and the tax engine flags this strategy when it applies to your numbers, on the Solo plan.

03

Low-value asset immediate write-off

Worked example
Situation

Ruth kitted out her Dunedin desk with a monitor and accessories, each under $1,000 excl-GST.

What they did

Instead of adding them to a depreciation schedule, she expensed each one immediately under the low-value asset write-off.

Result

The full cost came off this year's income rather than trickling through as depreciation over several years.

Illustrative example — not a real customer. Figures are based on your numbers and rounded.

Legal basis
  • Income Tax Act 2007 s EE 38 — low-value asset write-off (under $1,000)

PayWren finds this automatically: connect your invoices and expenses and the tax engine flags this strategy when it applies to your numbers, on the Solo plan.

04

Home office deduction

Worked example
Situation

Mia writes from a spare room at home and invoices around $30k a year. She'd never claimed anything for the room itself.

What they did

She measured the office floor area once, put it in her tax profile, and used the IRD square-metre rate. No power bills or rates notices to keep.

Result

For someone in Mia's position, the square-metre rate often turns a forgotten spare room into a meaningful annual deduction.

Illustrative example — not a real customer. Figures are based on your numbers and rounded.

Legal basis
  • Income Tax Act 2007 s DA 1 (general permission); IRD square-metre rate determination ($57.30/m², 2025/26)

PayWren finds this automatically: connect your invoices and expenses and the tax engine flags this strategy when it applies to your numbers, on the Solo plan.

05

ACC CoverPlus Extra review

Worked example
Situation

Dan's landscaping profit has been steady at around $30k a year, and every winter ACC's invoice priced cover on whatever his last return said he earned.

What they did

He talked to ACC about CoverPlus Extra and agreed a level of cover that matches what his household would actually need if he were off the tools — not his best year's profit.

Result

His levy now prices the agreed cover rather than last year's profit. The trade-off is real: lower cover means smaller weekly compensation if he's injured, so his adviser sanity-checked the number first.

Illustrative example — not a real customer. Figures are based on your numbers and rounded.

Legal basis
  • Accident Compensation Act 2001 ss 208–209 (agreed weekly compensation for the self-employed — CoverPlus Extra)
  • ACC Levy Guidebook 2026/27 — levy rates and liable earnings

PayWren finds this automatically: connect your invoices and expenses and the tax engine flags this strategy when it applies to your numbers, on the Solo plan.

Related guides

Prepare your GST returnGST basics for freelancersSet up your tax profileIR3 season checklistVehicle logbook guideProvisional tax datesGST due dates

PayWren tracks these for landscapers.

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