Running your own business can be so rewarding and challenging. It comes with the luxury of being your own boss and working on your own terms. While there is great satisfaction with this independence, balancing work schedules, managing family, running a home and keeping a tab on your finances - all of it might get a little overwhelming.
A lot of your expenses for running your business are slowly adding up everyday and it's natural that you are losing track of them.
But don't worry. Finday has you covered. Today, we are sharing a list of 25 tax deduction tips you can claim as a freelancer or a solo entrepreneur. Make sure you create a checklist of these much ahead of your tax filing season.
Leasing a workspace that is not attached to your home.
Expenses of a workspace at home.
Utility bills (electricity, gas etc.) relating to leasing a workspace that is not attached to your home.
Utility bills related to a workspace at home.
Internet and phone bills
Commercial telephone or internet costs
Remember, that you must keep business and private use separate, or have a separate work phone.
Travel expenses for public transport to and from clients, for the purchase of materials and other business-related travel expenses.
Study trips that are subject to conditions.
Stay for courses that are far from your home .
Accommodation expenses: overnight stays are fully deductible. So, always ask for an itemised bill.
Print paper and envelopes
Computer and other devices.
You can take a deduction for the year you purchased if it was exclusively for business.
Hosting, domain name and server costs
Hiring a professional to draw up your balance sheet & profit and loss account.
Professional insurance cover or insurance for commercial and business inventory.
Transportation & shipping costs
Travel expenses by car (0,19 euro per km)
Public transport, flight tickets, taxis.
Always have a destination and purpose for these trips.
Professional reading matter or books.
You must know that these educational or certification expenses must be directly related to your current line of work or not another career.
Printed material and advertising
Dinner/lunch (events/parties/gifts for clients/entertainment). Always keep names of clients and purpose of these expenses.
Contributions and memberships of professional organizations, etc.
Bookmark this checklist so you can track your business income and expenses all year round and you can stop worrying about tax deductions. We hope you have a great experience filing taxes this quarter.