11 Taxation Tips For Sole Traders, Telecommuters And Those Who Work At Home
There are many items that you can claim as tax deductions when working for yourself or working as a freelancer. Although many of them may be small if you add them all up they can make a considerable contribution to reducing your tax. Before you choose anyone to help you to your taxes, make sure you have a little chat with a couple of accountants, and find out which one has the best attitude and knowledge specific for you. Here are some tips that for what you can claim.
- More than just a proportion of your rent or mortgage. Remember that you can also claim any running, repairs and maintenance expenses of a proportion of your property if you live and work. That means even little details like cleaning costs. Again keep all of your grocery receipts.
- Anything you need for your business. Anything that you use in your home office you use for business is a cost. From printer paper, internet, a chair you sit on, and it will all add up. Keep all your receipts of your purchases – watching TV to get important news may be essential to your line of work.
- Travel. Business travel is expensive, and it might be good for your business to go and actually meet your clients. Securing your income is important.
- Insurance. Work at home and freelancer all have to protect themselves. They only earn what they do and there is absolutely no safety net. Insurance is a good way to reduce your tax and look after yourself. Don’t forget other insurances that you have on your home and a percentage of them.
- Payments you make to others. This is a big part of being freelance, and paying others to help you get your job done, even tax accountants. Look for every cost that you can associate with your home-based business.
- Gifts. Business gifts may be an important way to build your relationships. Look at what is appropriate with a good accountant.
- Stock losses. If you are saving in stock and you lost, you should be using this against your income.
- Transport. Record all the details and make the most of your car and cost.
- Study. To improve qualifications in your field and to improve your business. All the materials used and even private professional libraries.
- Software and internet. These can be very expensive and so you need to look at what you can claim.
- Business losses. If you are running a number of businesses one business may have lost money and knowing how to related your total income to your tax is extremely important and getting good advice on this is very necessary. The fact is that sometimes a business does not make money and you often have to spend to earn. Be smart and know all the avenues.
Again, as with any business, it is important for you to find the right accountant, and to look at every receipt and ask yourself, “How can I legitimately appropriate this receipt as an expense of my business?”.