10 Purchases That Are Tax Deductible

Taxes are important parts of any business. They are essential to pay and ensure that a company stays out of trouble. Although most people understand which products or services taxes can be deducted on, the term tax-deductible refers to something else. Here’s what you need to know:

What Are Tax-Deductible Expenses?

Tax-deductible expenses are those costs incurred by a business on which tax relief can be claimed. There are numerous tax-deductible expenses that commonly include things like business travel and pensions. Here are 10 other things which are tax-deductible items:

1. Business start-up expenses: This is one that comes as a surprise to many business owners but the expenses incurred to get a business up and running can be claimed for tax relief for up to 7 years.
2. Utilities and mortgage: If a business is operating from home, gas, electricity, water, and mortgage can be claimed for tax relief based on what percentage of the home is under office use.
3. Repair and maintenance costs: Tax relief can be claimed not just on the rent but also on any repair and maintenance work that gets carried out.
4. Trainings: You can also recoup the expense of any training, CPD, or seminar attendance, whether you're a director of a limited business or self-employed.
5. Vehicle maintenance: It is common knowledge that a business can write off car expenses, but did you realize you can also write off bike riding costs? Repairs, upkeep, and insurance are all deductible on a mileage basis for business use.
6. Bank charges: Tax deductions are available for financial and legal expenses like hiring a lawyer or accountant.
7. Work-related clothes: Any uniforms, protective gear, or even work clothing branded with the company logo are claimable for tax relief.
8. Magazine or journal subscriptions: Additionally, tax-deductible items are professional magazines or journal subscriptions connected to your business.
9. Donations: Any and all money given to a charity of any kind is tax-deductible.
10. Insurance: Life insurance provided by the company to its employees also falls under the ambit of tax relief.

Conclusion

If you are looking for further details or want to hire remote bookkeeping services for your dental practice, get in touch with Dental Bookkeeping today.

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