Self Employed? Want to reduce your tax liability?
The ultimate question to be asked by a sole trader… ‘How can I reduce my tax liability?’
Answer – business expenses!
As a sole trader you will come to your profit figure by deducting ‘allowable expenses’ from your sales.
So the issue of what is and what is not an allowable expense is crucial.
The following is a list of items to bear in mind when completing your tax return.
- Stationary and printing including things like business cards and invoice books
- Insurance you need to carry on your business
- Some of your electric and gasbills if you have a home office
- Lunch you have to buy out because you are ‘on the road’ doing your work
- Interest on money borrowed to put into your business
- A percentage of your motor vehicle including; petrol/diesel, motor tax, insurance, servicing & repairs and even a percentage of the cost of your motor vehicle
- Protective clothing / Work-wear
- Tool and equipment
- Rent cost on an office &/or storage space needed for the business
- Training courses & material needed to keep your skills up to date
- A percentage of your mobile bills
- Bank charges on your business bank account
- Subcontractors / employee costs
- Professional fees such as solicitors and tax consultants
- Advertising
To name some …
Income tax return deadline for 2012 is the 31 October 2013 or if you file online via ROS 14 November 2013.
For more information and advice on any of the above reliefs or to enquire about your own personal tax return please contact us today.
