Tax deductible expenses are basically work or company expenses in which the government allows tax relief. During tax season, it is much better to come prepared and have all your books and records straight for a successful financial audit. You can claim tax deductions on expenses that are exclusively made in the interest of the business as per HMRC. The following is a list of tax deductibles that you can claim this tax season.
1. Expenses of Your Business
If you have invested a significant amount of capital on the expenses of a startup or your business, you can claim it all as a tax deductible by showing it as a business expense. All the hardware and supplies like computers and office stationery necessary to set up your business, the cost of business registration as a licensed product, the web domain fees, and advertising are all under the umbrella of tax deductibles. Any expenses that are paid for using personal funds can be claimed when the company or legal entity starts trading, so be sure to keep receipts and maintain accurate records.
2. Office Maintenance
For any repairs and maintenance work for your office, the amount is tax deductible. If you are working from an office, you can also file your rent for the premises as a tax deductible as well. This also includes small business owners who work in a home office. In this case, you would have to report what percentage of your home is used for your business and measure your work space.
3. Electricity, Water, and Gas Bills
Due to the spread of COVID-19, people were assigned to work from home. If you also work from home, you can easily claim a certain percentage of your electricity, water, and gas bills as tax deductibles. Determine how much of your home is used for professional work purposes. The said amount will be registered as a tax deductible amount from all your expenditure. This includes power bills, council tax, and even some part of the interest on your mortgage payment.
If you are paying for subscriptions strictly for professional purposes, it can also be stated as a tax deductible. For example, a production company will have access to multiple editing and animation software products.
Claiming tax deductibles is a technical aspect and should be left to seasoned professionals to take care of it. Are you looking for a public accountant to take care of your financial affairs? Let a professional do it for you. MARIELA RUIZ, CPA, PLLC offers professional accounting, bookkeeping, and tax preparation services at affordable rates in Mission, TX. Visit our website to learn more about our services or simply give us a call at (956) 997-0067 for further assistance.