Running a small business or self employment in any capacity can be expensive and tax time can prove stressful, complex and confusing. Wherever possible, you should cut corners and save on business overheads. One way to do this is through tax deductibles. We all know massages are tax deductible, but did you know that the massage parlours can benefit from tax-back as well? Here are our top 6 business expenses that are tax deductible.

Education

If you’re spending over $250 studying for subjects related to your business or current employment, you can claim it. Travel expenses too can be claimed, if they relate to the cost of getting to and from your place of education.

Subscriptions

If you subscribe to any magazines or work-related journals for your business, these can be claimed as tax deductibles. If you work in certain occupations e.g. media, you may even be able to claim for TV subscriptions that help you keep on top of current events.

Kitting Out The Home Office

If you work from home, you should be keeping every receipt for any purchase you’ve made for your home office during each financial year. Working from home can have major tax incentives, and many expenses you wouldn’t normally consider claiming can quality. Home office furniture, computers, software and even some gas and electricity costs associated with keeping your home office running can all be deductible!

Fuel

Use your car a lot for work? You can claim either 66c per kilometre for up to 5,000 km in one financial year. That’s an incredible saving. The ATO actually has an app for you to use that easily allows you to track your car travels by GPS, so you can log and record every expense. Fantastic for you or any of your employees that drive a lot.

Mobiles

Workers can claim the cost of their phone and internet expenses, if they’re work-related. You don’t need to record the use of you or your worker’s mobile phones extensively, like you have to for the fuel tax-back, however just note, if the percentage claimed seems unusually large, the ATO may give you a call and investigate.

Tax Preparation Fees

Yep, that’s right, you can now claim back some of the cost of getting advice from a tax agent like say, AFY. Although general financial advice is not deductible, specific investment advice may be, if you pay an accountant to do your tax returns. We’ll even help you out with this next time you come in.

So, there you have it! What tax deductibles do you use that not many people know of? Do you bother with tax deductibles for your small business? If not, why? We’d love to find out. Get in touch if you have any questions about tax deductibles for your small business, we at AFY would be happy to help.