What are my taxable deductions?

When filing your taxes, you can write off any expense that is involved in the running of your business. This could include office rent, equipment and business travel.

To be a legal tax write off, an expense must have a legitimate purpose within your business. This means buying a camera is a legitimate business expense for a photographer – but not for a writer.

You can’t write off personal expenses, like groceries. But if an expense is partially personal and partially business, you can claim the business component. If you buy a new cell phone and use it for business 80% of the time, you’re allowed to deduct 80% of that cost.

Regardless of what you’re writing off, make sure you keep receipts of all your expenses. Keeping proof of your expenses will keep you out of trouble if you’re investigated by HMRC.

Tax write offs can save you hundreds of pounds a year – but they can be complicated. It’s worth checking with an accountant or tax agent to make sure you’re claiming the right things.

 

Related Xero feature:
File taxes online for your small business

Related Small Business Guide:
How to manage sales and use tax

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What are my taxable deductions?

When filing your taxes, you can write off any expense that is involved in the running of your business. This could include office rent, equipment and business travel.

To be a legal tax write off, an expense must have a legitimate purpose within your business. This means buying a camera is a legitimate business expense for a photographer – but not for a writer.

You can’t write off personal expenses, like groceries. But if an expense is partially personal and partially business, you can claim the business component. If you buy a new cell phone and use it for business 80% of the time, you’re allowed to deduct 80% of that cost.

Regardless of what you’re writing off, make sure you keep receipts of all your expenses. Keeping proof of your expenses will keep you out of trouble if you’re investigated by HMRC.

Tax write offs can save you hundreds of pounds a year – but they can be complicated. It’s worth checking with an accountant or tax agent to make sure you’re claiming the right things.

 

Related Xero feature:
File taxes online for your small business

Related Small Business Guide:
How to manage sales and use tax

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