The end of the financial year (EOFY) can feel overwhelming, but with the right systems in place, you can save time, reduce stress, and keep more money in your business. Whether you’re filing your own return or working with an accountant, a clear checklist ensures you don’t miss deductions, deadlines, or compliance requirements and sets you up for a strong start to the new financial year.

This guide breaks down the key EOFY tax tasks for New Zealand small businesses, covering important tax deadlines, record-keeping strategies, deduction opportunities, and cash flow management.

1Key EOFY Tax Dates in New Zealand

Getting your EOFY tax return right starts with knowing what’s due and when. Missing a deadline can lead to penalties, so it pays to be organised.

If you file your own taxes

  • 31 March 2025: Official end of the 2024–25 financial year.
  • 7 July 2025: Deadline for filing your income tax return.

If you work with an accountant

  • 31 March 2025: Ensure all records are up to date and shared with your accountant.
  • 31 October 2025: Extended filing deadline if your tax agent has an approved extension with Inland Revenue.

Other key tax deadlines

  • 28 April 2025: GST return and payment due for businesses on a two-monthly or six-monthly filing cycle.
  • 20th of each month: PAYE payments due for small to medium employers.

For a complete list of tax deadlines, check the 2024–25 Tax Due Date Calendar on the Inland Revenue website.

2Organise your records to make tax time easy

EOFY is much easier when your records are in order. Start by reviewing your income, expenses, and bank statements to ensure everything is accounted for. This is the best time to track down any missing invoices or receipts. If you’re using accounting software like Xero or MYOB, reconciling transactions regularly can help avoid EOFY headaches.

Key records to check before 31 March

  • Sales and income statements: Ensure all business revenue is recorded correctly.
  • Business expenses: Review all deductible expenses and categorise them properly.
  • Bank and credit card statements: Reconcile these with your financial records to spot discrepancies.
  • Payroll records: Confirm PAYE deductions, leave balances, and any outstanding payments.
  • GST records: Ensure GST collected and paid is correctly recorded if you’re GST-registered.
  • Asset purchases and depreciation schedules: If you’ve bought or sold business assets, update these records accordingly.

Need a system for next year? Check out Prospa’s guide: 6 steps for EOFY success for tips on staying organised year-round.

3Maximise your tax deductions

EOFY is your last chance to reduce your taxable income by claiming all eligible deductions. If you’ve purchased equipment, paid for marketing, used your car for work, or worked from home, there’s a good chance you can claim some of those costs.

Common deductions NZ small businesses can claim

  • Vehicle and travel expenses: If you use your car for business, you may be able to claim fuel, insurance, and maintenance costs.
  • Home office expenses: If you work from home, a portion of your rent, power, and internet could be tax-deductible. Prospa’s guide explains how to calculate your claim.
  • Business equipment and technology: Computers, software, tools, and other work-related equipment may be deductible.
  • Marketing and advertising: Digital ads, website hosting, and branding costs can often be claimed.
  • Professional services: Accounting, legal, and consulting fees are generally tax-deductible.

Some deductions need careful calculation — for example, if you use your car for both work and personal trips, you can’t claim 100% of the costs. The same applies to a home office. Keep clear records so you can justify your claims if required.

Not sure what you can claim? See our Small business tax deductions NZ article for a full breakdown of deductible expenses.

4Stay on top of GST and PAYE obligations

GST and PAYE mistakes are some of the most common tax errors for small businesses. If your business is registered for GST or has employees, now is the time to review your records and fix any errors before the new financial year.

GST: Check your returns and payments

If your business is GST-registered, you should:

  • Ensure all GST returns are filed correctly: The due date for the period ending 31 March is 28 April if you file two-monthly or six-monthly.
  • Check for any adjustments: If you’ve used business purchases for personal use, you may need to adjust your GST claim.
  • Confirm that all GST collected has been paid: Double-check your records to ensure you haven’t underpaid.

PAYE: Make sure payroll is accurate

For employers, EOFY is a good time to review your payroll records to confirm:

  • PAYE deductions match what you’ve reported to Inland Revenue.
  • All wages and bonuses have been correctly processed.
  • Leave balances are up to date for the new financial year.

PAYE payments are due by the 20th of each month, so being accurate now means fewer issues down the line.

5Filing your tax return

Once your records are in order, the next step is filing your tax return correctly to avoid penalties and claim all eligible deductions.

Which tax return do you need to file?

  • Sole traders file an IR3 individual income return, reporting both business and personal income.
  • Companies file an IR4 return, with a separate tax rate applied to company profits.
  • Partnerships don’t pay tax themselves but must file an IR7 return to report income distribution to partners.

All businesses must submit their return by 7 July, unless they have an extension through a tax agent. If you owe tax, payment is generally due by 7 February the following year (or 7 April if you have an accountant).

6Managing tax payments and cash flow

Even if your business is profitable, a large tax bill can put pressure on cash flow. Planning ahead can help you avoid financial strain.

How to prepare for tax payments

  • Review your expected tax liability: If you’re not sure how much you owe, check your financial reports or talk to your accountant.
  • Set aside funds throughout the year: The best approach is to regularly put aside a percentage of your income into a separate tax account.
  • Understand provisional tax: If your tax bill is over $5,000, you may need to make provisional tax payments in instalments rather than one lump sum.

What if you can’t afford your tax bill?

If your tax bill is higher than expected, you have options:

  • Use a tax pooling service to defer tax payments and pay in instalments.
  • Contact Inland Revenue early to arrange a payment plan.
  • Access flexible funding to cover tax bills or other EOFY expenses with a Prospa Line of Credit. To explore all options to keep your cash flowing, speak to a Prospa specialist today.