A business owner is always engaged in finding out the different money-saving techniques for raising their annual profit. The tax deduction is one such way to save money. All small to medium-scale businesses are eligible for different tax deductions, only if they know the process to claim. Nevertheless, being a business owner you are already occupied with setting up the business rules and taking care of all business operations, and not be aware of the tax deductions your business could be eligible for. Nevertheless, there is nothing to worry about – the tax agents will always be there to guide you through the steps to file tax returns.
What Should be the Small Business Claim From The Tax Deductions?
Claiming most business expenses as tax deductions is possible. As stated by the Australian Taxation Office, the taxable income of your business can be calculated by deducting the tax deductions from the assess-able income.
You can be unaware of the expenses you could claim for tax deductions. So, we have made a list of expenses for you to remember before you file your tax return –
- Motor vehicle expenses
- Home-based business
- Capital maintenance such as depreciating assets
- Operating expenses
- Business travel expenses
- Super Contributions, Workers’ Salaries, Wages
- Machines repairs, replacement and maintenance expenses.
Here are the best ways to narrow down the expenses to claim at the time of filling the tax returns under the supervision of the tax agents you have hired from the best agency in Hobart.
1. The directly related expenses to business income.
2. For home-based businesses, the expenses related to running the company can be claimed. For instance, the telephone bills and internet charges are spent for the business to run smoothly.
In fact, at any time, you can visit the official website of the Australian Taxation Office to know more about the types of deductions and even to know whether your business is eligible to claim those deductions.
Sometimes, a few owners question the types of business travel expenses they could include in their claims. Rather, you can honestly include any type of expenses you have incurred on a business trip, which comprises trains, taxis, trams, buses and flights.
At the same time, including all the meal expenses and accommodation costs for overnight business travel. So, be cautious to maintain a travel diary and keep the bills handy when you are filing tax returns.
Indeed, filing tax returns alone is often too confusing. There is a lot of data to handle, and in no time you are likely to feel lost. So, the wise step is taking help from tax agents and accountants. Through their bookkeeping service and taxation guidance, they help you to make the tax returns filing process super easier.
Australian Business Network 