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Claimable Expenses for Small Businesses

Updated: Mar 25, 2023

Hello sole traders! you've got this! Running your own business can be exciting, and the good news is that you can claim various expenses as tax deductions to help you save money and boost your business even further!

So, let's talk about some of the expenses you can claim.

Home office expenses: This covers rent, rates, power, and phone bills for your home office if you use it as your primary place of business. You can claim a portion of these expenses based on the size of your office and the amount of time you use it for business purposes.

Office expenses: This includes the cost of renting, leasing, or owning an office outside your home. You can claim rent or lease payments, utility bills, and office supplies.

Travel expenses: This covers travel costs for business purposes, such as fuel, maintenance, parking, and mileage. You can claim a portion of these expenses based on the business use of your vehicle.

Equipment and tools: This covers equipment or tools required for your business, such as computers, printers, software, and machinery. You can claim the cost of these items as a tax deduction in the year of purchase or claim a depreciation deduction over several years.

Advertising and marketing expenses: This covers the cost of advertising and promoting your business, such as newspaper ads, business cards, and website design. You can claim these expenses as tax deductions.

Business insurance: This covers any insurance premiums you pay to protect your business, such as liability insurance or professional indemnity insurance.

Professional fees: This includes fees you pay to accountants, lawyers, or other professionals for services related to your business.

Repairs and maintenance: This covers repairs or maintenance to keep your business property, equipment, or vehicles in good working order.

Bank fees and charges: This covers any fees or charges associated with your business bank account, such as account fees or transaction fees.

Bad debts: If you have unpaid invoices that are unlikely to be paid, you can claim these as a tax deduction.

Interest expenses: If you have a loan for business purposes, you can claim the interest payments as a tax deduction.

Cost of goods sold: If you sell products that clients may buy and then sell, you can claim the cost of goods sold (COGS) and any associated shipping or storage fees as allowable deductions.

Depreciation expenses: Depreciation refers to the gradual decline in value of an asset over its useful life. As an asset ages, it becomes less valuable and less efficient. You can claim a portion of the asset's value as a tax deduction each year to account for its depreciation. You can claim depreciation on assets such as computers, vehicles, machinery, and furniture.

By keeping accurate records and seeking professional advice, you can maximize your deductions and reduce your tax bill. So keep up the great work, stay positive, and claim those expenses!

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