Running a small business can be hard enough as it is, particularly in the current climate. Issues such as deductible tax for certain expenses can be an additional hassle and generate a world of confusion. The best way to be completely clear on exactly what is eligible as a business expense is to consult a qualified business accountant. The rules and regulations relating to business expenses are particularly rigid so it is important to ensure that you get it right.
It is vital that you keep up-to-date records containing all relevant tax documents. This will provide solid background evidence when making your business expense claims. As a general rule, costs which are incurred while increasing the profits of a business are tax deductible; for example, cleaning costs, utilities, business insurance, postage and premise rental. However, the purchasing of business equipment or premises are not liable.
Certain salaries and payments for staff are also tax deductible, including redundancy payouts, childcare and training. For small businesses with dedicated premises, heating, lighting, cleaning, water rates, rent, business rates, small business insurance and general maintenance are tax deductible.
Different expense claims are relevant for different types of businesses so speak to a qualified business accountant and make the most of your small business.