Being self-employed means that you are in charge of your business, including paying taxes. You must take care of every aspect of your business to be successful. If you are newly self-employed, you may be unsure as to what tax breaks you can use when filing your taxes each year. Below are a few examples of expenses you can claim to help lower the amount you pay in taxes based on income.
Home Office
For most individuals who are self-employed, a home office is used to sell products or provide services. You have a small area in your home that is used as an office, where you talk to customers, check emails, etc. You have the ability to deduct a portion of your work space as a home office expense. Expenses you can deduct from a home office can include property taxes, mortgage interest, homeowner’s insurance, utilities and more. Your accountant will be able to assist you with filing correctly when using the home office expense deduction.
Internet and Telephone Use
Today’s self-employed business owners use the internet and telephones on a daily basis. Mobile phones are used to stay in contact with employees as well as customers, not to mention used to go online to check emails or product orders. When it comes to filing taxes, you have the ability to claim your internet and telephone use. Your business phone, fax and internet expenses are all included. You will need to deduct expenses that are related specifically to your business.
Travel
Business travel is an expense that can be deducted and should be considered correctly by the self-employed individual. When you travel out of town, you can count gas mileage, money spent on hotel stays and meals within your travel budget. Take note of everything you do and everything you spend so your accountant can assist with filing your travel deductions carefully. You want to be sure that you file correctly but also do not miss any deductions that can help to lower your profit margin.
Education
When operating your own business, you may find that educating yourself further will help you to grow and expand. Education is another category that is considered in tax deductions for your business. When you take a class, be it online or at a local college, you can claim this as an expense. Associated expenses such as books or materials can also count towards your tax deductions.
Researching Online
Depending on your career path, you may have even more deductions you can access. Researching your career field online can help you to find even more deductions that you might not have thought of. Such resources as https://emioptions.co.uk/, can ensure that you find the right tax breaks for your given profession.
Being proactive and keeping a solid record of your business spending will help you to file your taxes correctly and have a multitude of deductions. You will end up paying less out of pocket for taxes for the year, which is a major relief to your business bank account!
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