Tax deductions can be a lifesaver for small business owners looking to save money on their tax bill. Every single one can end up saving you serious dollars, and yet there are so many tax deductions that are often overlooked. While you may be aware of common deductions such as vehicle costs and home office expenses, there are so many more tax deductions that you might be eligible for. Here are eight tax deductions that are often forgotten by small business owners.
1 Website costs
The Australian Taxation Office (ATO) allows you to claim a variety of expenses that you may incur in the every day running of your business, often classed as operating costs. This includes the costs associated with running a commercial website, including site maintenance, content updates and internet costs.
2 Subscription costs
If you’re subscribed to a business or professional journal, newspaper or magazine that’s connected to the running of your business, you may be able to claim this cost as a business expense.
3 Sunglasses, hats and sunscreen
If your business activities require outdoor work, you can claim the cost of sunglasses, hats and sunscreen as a tax deduction.
4 Tax-related expenses
While it’s common knowledge that you can claim for your accountant fees as a small business owner, did you know you can also claim for having a bookkeeper prepare your business records? Preparing and lodging tax returns and business activity statements may also be classed as tax-related expenses.
5 Insurance premiums
The ATO allows you to claim for general business expenses, including insurance premiums, such as accident or disability, fire, burglary, professional indemnity, public risk, motor vehicle, loss of profits insurance or workers’ compensation.
6 Repairs and maintenance
If you use machinery or tool to produce a business income, you may be able to claim a deduction for any repairs and maintenance costs – as long as the expenses are not capital expenses. This could include activities such as repairing electrical appliances or machinery, mending leaks and maintaining plumbing.
7 Premise expenses
If you occupy a premise to run your business, you may be able to claim related running costs such as, electricity expenses, phone expenses, rates, water expenses and rent or leasing costs.
8 Advertising and sponsorship costs
Even advertising and sponsorship costs related to the running of your business may be tax deductible, along with public relations expenses too.