When running a business, the chances are that you are pulling money out of your pocket to do so. For instance, you might use your credit card to purchase a plane ticket to go to a business meeting. Fortunately, that is just one of the many business expenses that you can claim on your taxes!
That being said, whether you are a business owner or an employee, there are many things you can claim that you might not realize. While some claims might not amount to much, they can accumulate to quite a substantial amount in the long run.
With that in mind, here is what you can and cannot claim from your expenses.
1. Travel expenses
Not all travel expenses can be claimed. For instance, you cannot claim travel expenses for a personal vacation. The only travelling expenses you can claim are those that are business-related and are required to make income. This includes plane tickets, bus tickets, or even the price of a car rental to go to a business meeting.
Other types of travelling expenses that can be claimed include travelling to meet accountants or to prepare a tax return.
2. Home office expenses
If you are using your home to conduct business, you can claim the expenses related to keeping your home office running. With that said, there are generally two ways you can calculate how much you claim.
The first method is to claim based on hours you worked in the home. Using the "34 cents" method, you keep track of how many hours you worked from your house and then multiply that figure by 34 cents. That is the amount you can claim.
The second method is to claim all the expenses related to you living in that building. This can include mortgage interests, house insurance premiums, phone bills, electricity bills, and so on. You can even claim against the decline in the value of the furniture used in your home office.
3. Superannuation expenses
In most cases, you will be making regular payments to your employees to contribute to their pension fund once they retire. Fortunately, these expenses are claimable!
4. Educational expenses
You can claim educational expenses as long as they are related to your profession or ability to generate income. For example, you can claim the cost of enrolling in technical and further education (TAFE) courses. Keep in mind that you will need to pay for the course in the same year you are going to claim it.
You may have also purchased journals, magazines, and other educational materials used to further your education. You can also claim these as long as they are related to your business.
By paying attention to your work activities and keeping track of your expenses, you will be able to claim the right things to make back some of the money you have spent running your business.
That being said, if you are having trouble figuring out precisely what you can and cannot claim, do not be afraid to work with a professional accountant. He or she will be able to assess all of your expenses and identify what you can claim to help you save as much money as possible.
Are you looking for an ECommerce accountant to help with your business expense claims? Located in Australia, The ECommerce Accountant can provide you with the services you need to claim your expenses and boost your bottom line. Reach out to us today.