Self Assessment - 3 expenses you might not know you can claim.
Unlock hidden savings – claim now – 3 business expenses you may not know about When the taxman comes knocking
When it comes to running a business, every penny counts. As a growth-minded SME, you'll always be on the lookout for ways to reduce your tax bill and save money. You probably know about the usual business expenses you can claim for - travel, equipment, and advertising. But did you know that there are other, lesser-known expenses that you can claim against too?
In this article, we'll explore three often-overlooked business expenses that can help you save money next time the taxman comes knocking.
1. Professional subscriptions: stay informed and save
To keep your business competitive, you'll always want to stay up-to-date with the latest industry news, trends, and insights. Many businesses invest in professional subscriptions to magazines, journals, and online services to access this vital information. The good news is that these subscriptions can be tax-deductible, provided they're directly related to your business.
For example, if you're a graphic designer, a subscription to a design magazine or website would be relevant and tax-deductible. Just make sure to keep records of your subscriptions and their relation to your business for tax purposes.
2. Continuing education: boost your skills and your savings
Investing in yourself and your employees is key to maintaining a knowledgeable, skilled workforce. This investment can come in the form of continuing education courses to improve skills or expand knowledge. Not only does this contribute to your business's success, but it can also be a tax-deductible expense.
Claim for tax relief against workshops, seminars, and courses
Continuing education expenses can be claimed for courses. This might include workshops, seminars, or even online courses related to your industry. Remember, though, that the courses need to be directly relevant to your business or role to qualify.
Keep track of any course fees, materials, and associated travel expenses to claim them on your taxes. And don't forget to hang onto any receipts, invoices, or certificates to prove your claims in case of an audit.
3. Charitable donations: giving back and saving money
Giving back to your community can be good for both your company's reputation and your bottom line. Businesses can deduct charitable donations from their taxable income up to a certain limit. This means you can support your favourite causes while also saving money on your taxes.
To claim this deduction, ensure that your donations are made to registered charities. You'll need to provide proof of your donation, such as a receipt or bank statement. And remember that there's a limit to how much you can claim. Currently, you can deduct donations of up to 100% of your company's taxable income.
A valuable tax-saving opportunity
Before you start donating, it's worth reviewing the specific rules and limits for charitable donations in the UK, as they can be complex. But with a bit of research, you can make the most of this valuable tax-saving opportunity.
Make the most of your business expenses
By claiming for these lesser-known business expenses – professional subscriptions, continuing education, and charitable donations – you can reduce your tax bill and save your business money. But navigating the tax system can be tricky, especially with so many rules and regulations to keep track of.
That's where Liondaris & Co Accountants can help. Our expert team will guide you through the complex world of business expenses and ensure you're making the most of your tax deductions.
Why not give us a call today and see how we can help you maximise your savings and grow your business?