Tax-Deductible Expenses

ScotiaAccounting  |  29th July

We all know the words tax-deductible, but not everyone out there knows what they mean and what they can do for your business.

Put simply, tax-deductible expenses are business costs that can be charged against your profits for tax purposes.

Deducting these expenses from your profits means the percentage you pay will be on a smaller amount of money.

Listed below are some of the most important ones any sole trader must know to ensure you don’t pay out more than you need to.

Travel

You can claim for any travel that is related to your business, like driving to a meeting with a potential or existing client – your daily commute to and from your workspace sadly does not count.

Insurance

It’s probably the least exciting thing to spend your money on in the whole world, but every business needs insurance.

However, the good news is that any insurance your business takes out (for the business) qualifies as tax deductible – so your public liability or professional indemnity insurance shouldn’tcost you as much as first feared.

Website

The cost of hosting your beautiful website is, were happy to say, tax-deductible.

That doesn’t mean you should rush out and hire the world’s best web-designer to overhaul your site though, web-development costs count as capital expenditure and as a result are treated differently – just ask us if you’d like more detail.

Telephone & Broadband

If you have a dedicated business line then this one is easy, claim away for some very welcome tax relief.

If you also use the phone line for personal use however, you’ll need to track your business calls and business hours on-line in order to claim – keeping a monthly log would be a good idea.

There are many more areas where you can claim tax-relief for your business, contact us now to hear all about them.