Any business will have to pay tax on their profits at around 20%. Business expenses can be removed from the taxable amount which means the tax you pay will be lower. You need to be aware of what expenses you can claim. If you are diligent and smart in the way you claim expenses, you will find that you can save a large sum of money each year. Some business owners tend to use an accountant to help them with their annual tax returns. There are various money-saving tips for businesses that can help maximize your annual profits. Learn about the expenses you can claim as a business owner and maximize your tax deductions. Get expert advice and tips from spam-wars.net
The following article provides an overview of what expenses you can claim to help reduce your annual tax bill
What Business Expenses Can You Claim
Millage Allowance
If you use a car for transport then you are entitled to claim millage. General rule is that you can claim 45p per mile for the first 10,000 miles and then 25p after that.
Office Equipment
Expenses such as stationary, ink cartridges and office equipment can also be purchased against your tax. If you run a limited company, you purchase equipment as an asset of the company which makes it a claimable expense.
Rent and Bills
If you run your business from home then you can also claim bills such as rent and mortgage payments though only a monthly proportion can be claimed. Generally the amount you can claim will be down to the space used for your business. Learn all about claiming business expenses and reducing your tax burden with our comprehensive guide on successwithtaylor
Phone & Internet
Business phone and internet costs for your business can also be claimed though the split between personal and business use needs to clear. Hosting, internet security, website management and other admin expenses can be claimed if they relate to running the business
Client entertaining
Some client entertaining can be claimed if it is a legitimate business expense. For example if you were meeting clients to discuss a business deal, then some client entertaining expenses can be claimed. However this expense should not be abused.
There are other expenses that can be claimed but it is important not to try and pay no tax. The general percentage of tax paid is 20% therefore any necessary business expenses can be claimed to reduce this amount. Some business owners will try and claim every expense in an attempt to pay no tax at all. Unfortunately, this will only highlight your business to the tax authorities and a detailed investigation into your accounts will be made.
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