There are a number of ways to reduce your taxable income during the financial year. Here are five handy hints for people on a wage or salary, or running a business from home:
1. There are a range of costs you can claim as a tax deduction – depending on your circumstances. These include:
2. It is vital to keep a record of any and all expenses that you wish to claim as a tax deduction. Luckily, there’s a quick, efficient and easy way to do this electronically, just by taking a picture on your phone - contact our bookkeeping team to find out more!
3. Be prepared! While there are a range of common tax deductions, your industry or job is likely to have additional, job-specific deductions. Before you submit your tax return (or even at the beginning of the financial year) research which deductions are available to you.
4. If you are working from home you may be able to claim a portion of home-related costs, such as:
5. If you are running a home-based business, you may be able to claim some or all of the following:
But be careful! Claiming any part of the interest on your mortgage may affect your ability to sell your home tax-free later on, as it may be assessed for Capital Gains Tax purposes. Be sure to discuss this with your accountant to see if this kind of claim is suitable for your circumstances.