What Business Expenses Can You Claim?

Q. What’s the big deal about business expenses?

A. Put simply, business expenses can help to lower your tax bill. Many business expenses can be claimed to offset your business income, reducing the amount of tax you need to pay. So it’s in your interest to know what expenses you can claim.

Q. Who can claim business expenses?

A. All businesses, also including self-employed people, contractors and sole traders, providing the business is carried on with the purpose of producing income.

Q. What business expenses can you claim?

A. The types of costs you can claim include:
– Vehicle expenses, transport costs and business travel
– Interest on money borrowed for the business
– Home office expenses
– Rent on business premises
– Depreciation on assets such as office equipment
– Some types of business insurance premiums
– Work-related subscriptions such as to professional associations and publications
– Business phone expenses
– Stationery
– Uniforms
– Tax agent fees
– Client entertainment expenses
– Staff entertainment expenses

Q. How much can you claim?

A. The amount you can claim is different for different types of expenses. For example, many client entertainment expenses are 50% deductible, such as taking a customer out to dinner or giving them a gift of a bottle of wine. Some staff entertainment expenses can also be 50% deductible, such as Friday night drinks or Christmas parties.

Q. How do I claim my business expenses?

A. Keep all business-related receipts and invoices as you need to have a record of the expense in order to claim it. The expenses are claimed within your annual tax return, which either you or your accountant can complete and file.

Q. Should I use an accountant to help with my expense claims and tax return?

A. Using an accountant to complete your tax return can actually save you money as they can maximise your deductions. Not only do they know all of the types of expenses you can claim and what percentage of each expense can be claimed, they will also work out proportionate claims where costs relate partly to the business and partly for private use.

Please contact us if you have questions relating to business expenses you can claim. We can help you to maximise your deductions.