Running a business comes with plenty of expenses, from rent and supplies to software and staff costs. But what many business owners do not realize is that there are several lesser-known expenses they can legally claim to reduce their taxable income. Understanding these can help you save money, stay compliant, and make the most of every penny your business earns.
Let us uncover some business expenses you might be overlooking.
1. Home Office Expenses
If you work from home, you may be entitled to claim part of your household costs as business expenses. This can include a portion of your rent or mortgage interest, electricity, internet, and even cleaning. The key is to calculate the portion of your home used exclusively for business and claim only that percentage.
For example, if your workspace takes up ten percent of your home, you can claim ten percent ofper centrelated costs. It may not sound per centch, but over a year it can make a big difference.
2. Professional Development and Training
Learning never stops, especially for business owners. Courses, workshops, webinars, and even industry-related books can be claimed as deductible expenses, provided they are relevant to your business. Staying up-to-date with new knowledge not only helps you grow but also helps you save.
3. Subscriptions and Memberships
Are you subscribed to trade journals, professional associations, or industry-specific platforms? Many of these are claimable as long as they relate directly to your business activities. The same applies to accounting software subscriptions, cloud services, and online tools used for daily operations.
4. Mobile Phone and Internet Bills
If you use your personal phone or internet for business, you can claim a portion of those costs. Keep detailed records or bills showing your usage to support your claim. Even small percentages add up when you calculate them over a full financial year.
5. Business Meals and Travel
Meals during client meetings, travel to business events, or fuel for work-related trips can often be claimed. The key is documentation. Always keep receipts and note down the purpose of each meeting or trip. Be cautious, though, as personal or social outings do not qualify.
6. Bank Fees and Interest
Business bank account fees, loan interest, and credit card charges used for business purposes can be claimed. It is easy to forget about these small costs, but they are legitimate business expenses that can reduce your taxable profit.
7. Marketing and Advertising
Whether you run digital ads, print materials, or social media campaigns, the costs involved in promoting your business are all deductible. Even website hosting, logo design, and professional photography qualify if they are used to promote your business or attract clients.
8. Office Supplies and Equipment
Printers, paper, pens, and other everyday office items are obvious claims. But many business owners overlook equipment such as laptops, furniture, and tools used for work. You may also be able to claim depreciation over time for larger purchases.
Why These Claims Matter
Every eligible expense you claim helps reduce your taxable income, which means you keep more of your earnings. The key is to stay organised. Keep receipts, maintain accurate records, and track everything related to your business activities.
Small savings add up quickly when managed correctly.
A Quick Word of Caution
While claiming expenses is beneficial, it is important to do it right. Only claim for costs that are genuinely connected to your business. Making false or exaggerated claims can lead to penalties. When in doubt, seek professional advice to stay compliant with tax rules.
Final Thought
Many business owners pay more tax than they need to simply because they are unaware of what they can claim. By identifying legitimate expenses and keeping proper records, you can reduce your tax bill and strengthen your financial position.
If you are unsure about what qualifies, a professional accountant can guide you through every step and help you uncover savings you might have missed.
Take control of your finances today and make every expense count.
