What are deductible expenses for business ?

What Are Expenses?

Expenses are the costs you incur in the day-to-day operation of your business. When it’s time to file your taxes, your taxable income (the amount you need to pay tax on) is calculated by subtracting your business expenses from your total profit. The more expenses you can claim, the lower your taxable income, and the less tax you’ll need to pay.

What You Can Claim For:

Business expenses may include:

• Vehicle expenses, transport costs, and travel for business purposes

• Tools and Equipment

• Direct cost such as raw materials
  

• Rent paid on business premises

• Depreciation on items like computers and office furniture

• Interest on loans or borrowing for the business

• Some insurance premiums

• Work-related journals, magazines, and subscriptions

• Membership fees for professional associations

• Home office expenses

• Work-related mobile phone costs and phone bills

• Stationery and office supplies

• Work uniforms

• Tax agent fees

• Entertainment expenses (note: some entertainment expenses are only partially claimable)

• Accrued purchases

• Salaries and wages

• Training and development costs

• Cleaning expenses

You cannot always claim the full cost of every item. For example, some entertainment expenses may only be partially deductible (e.g., 50%). You can only claim 100% of the cost for items that are exclusively used for business.

If you have any questions or need clarification, please contact us.