As a business owner, you would look for various ways to save money so that you can increase your annual profit. One area that you may neglect or not know about is tax deductions.
Small businesses are eligible for various tax deductions, provided you know how to claim. If you are not sure about the tax deductions eligible for your business, here’s a guide that can help.
Tips on Small Business tax deductions and what to claim
Do you know that it’s possible to claim most of your business’s expenses as tax deductions? According to the Australian Taxation Office, you can calculate your business’s taxable income by deducting tax deductions from your assessable income.
You may not be aware of the expenses that you can claim for tax deductions. Here’s a list of the expenses that you can keep in mind before filing your tax return:
● Home-based business
● Motor vehicle expenses
● Operating expenses
● Wages, super contributions, workers’ salaries
● Business travel expenses
● Capital expenses like depreciating assets
● Machine maintenance, repairs, and replacement expenses.
The best ways to narrow down the expenses that you can claim while filing your tax returns are as follows:
● The expenses are directly related to your business’s income.
● If you are running a home-based business, you can claim for the expenses related to running your company. For example, telephone bills or internet charges spent on running your business smoothly.
If you want to know more about the types of deductions and whether your business is eligible for claiming those deductions, you can visit the official website of the Australian Taxation Office.
Some people question the types of business travel expenses that they can include in their claims. Honestly, you can include almost any type of expenses incurred on a business trip, including fares for trains, taxis, buses, trams, or flights.
Additionally, you can also include your meal expenses and accommodation costs for overnight business travel. Make sure you keep a travel diary and the bills handy at the time of filing your tax returns.
It is sometimes confusing to file tax returns alone. With so much data to handle, you may feel lost after a few minutes. Don’t worry; at Perth Mobile Tax and Business Services, we provide a range of tax and bookkeeping services that can make tax filing easier for you. Call us at 1300 001 829 or use our online booking system to set up an appointment at your convenience.