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Save Money by making the most of your tax return!
2021/22 has been a year of immense challenges for small business owners, however, the 2022/23 assessment year brings with it an opportunity to reduce your taxable income! With deductions available that can help you save money on tax payments, make sure you do not miss out. Here are some common deductions to consider – be smart and leverage them so they work in favour of your bottom line this financial season!
- Start-up Costs
Start-up costs don’t have to weigh you down as some expenses associated with launching your business may be deductible from your taxes. This includes certain expenses related to setting up the business such as legal fees, accounting fees, advertising costs, and other similar expenses.
- Business Property Rent
If you rent a property for your business, you may be eligible to deduct the cost of rent from your taxes. This includes for commercial and residential properties used for business purposes. So don’t miss out on the savings by neglecting to explore this avenue.
- Inventory
Gain the most from your business endeavours by taking advantage of inventory deductions. For every item produced, purchased, or given away as part of promotional activities for your company – such as giveaways and sales events – you can reduce taxes owed on those transactions.
- Utilities
Maximize your business benefits by keeping track of all your utility expenses such as electricity, water, and telephone bills as certain amounts can be deducted from your taxes if they are used exclusively for business purposes. This includes both fixed monthly charges and variable usage charges such as those associated with electricity or water consumption.
5 Insurance
Did you know that investing in insurance for your business could benefit you beyond just covering potential losses? Permissible insurance premiums paid by the business can be deductible from your taxes depending on the type of insurance policy being purchased and its purpose within the company’s operations. This provides an additional financial reward to businesses that choose the smart choice of protecting themselves.
6 Business Travel Expenses
Maximise the value of your business trips! When you travel for work, a variety of expenses can be offset against your taxes. These include airfare, hotel stays, meals and car rentals – all related to professional needs like conferences or seminars that benefit your company’s operations.
Small businesses have the potential to save big on their taxes by taking full advantage of all applicable deductions. An accountant or tax professional can help ensure this happens and maximise your savings, so don’t miss out on money that could be invested in growing your business!
Contact us today by email at info@experity.co.za for expert advice on how you can make the most of your tax returns and grow your company!