As the end of the year approaches, more and more business owners begin to think about preparing their files and paperwork to lodge their business tax returns. And while you may think that you have the process sorted and are claiming all of the available items you can, there may be some which you are forgetting.
Below are three of the most common businesses expenses in your budget which you can consider claiming on your business tax return.
Space. Not rent. Space. While the majority of business owners know that they can claim the rent they pay for their store, many aren’t aware that the ability to claim for this type of expense isn’t just limited to storefronts.
- If you needed to store surplus products in a temporary warehouse during the year, you can include this cost.
- If you needed to hire space a trade show or a convention for a promotional booth, can you include this cost?
Whatever space, if you paid for it and it was required for the successful operation of your business then it is an item you should consider claiming.
If you are running your business home from, you may be able to claim a portion of your household expenses against your business, providing that you use the services and utilities for business use. For example, if you buy a new computer which you will use for both work and personal use, you can’t claim the entire laptop. Instead, you can consider claiming a portion of the laptop price, with a depreciating value each year.
Benefits for Your Employees
There are a number of items you likely use as incentives to retain your staff, from company cars to gifts from the Groupon Coupons page for Merrell, right through to corporate retreats. Whatever the expense, if it related to the operating of your business, in this case, the retention of high-quality staff, then it is an item that you can consider using your tax bill.
Just because they are similar to the expense you claim at home doesn’t mean that you can’t claim them for your business.
- Trash disposal
- Internet access
- Telephony services
All of these items are necessary for the operation of your business and accordingly can be considered as potential tax deductions.
If you lease cars for your employees to use for work purposes then this is an expanse which you can claim, but you will need to calculate depreciation before you do. Of course, this also includes any of the additional costs, such as fuel or maintenance that you incur in keeping these vehicles.
If your business has opted for a car sharing program and your staff uses the service for the purpose of operating your business then you can also look to consider claiming these items on your business tax return.
When it comes to business tax, there are likely many more claimable items out there which you don’t know about. In addition to these, do so research for other commonly overlooked claimable business expenses.