Starting a business can be hard work to say the least. You may find the whole thing incredibly daunting and you may even find it hard to really know if you are making the right decisions or not. This can leave you questioning yourself along the way, but one thing that you should never have to question yourself about is your tax return.
The first thing that you have to do is find out what tax return you need to use. You need to work out how much you have earnt but you also need to know the structure of your business as well. If you own a partnership then you may need to use one form, but if you are a sole proprietor however then you may need to use another type of form. This will really help you to get a good result out of your return and it will also make the whole thing much easier as well. If you want to find out more about HMRC then you can find an interesting article here: https://www.qdoscontractor.com/news/2018/05/14/5-key-ir35-points-from-the-pac-meeting.
A lot of small business owners are very intimidated when it comes to taking deductions away from their small business and they are worried about claiming too much. The truth is that you are legitimately entitled to the deduction and you should really make sure that you take it. If you want to claim some expenses from home then you have to make sure that you have a dedicated office space at home and you also need to make sure that you use this space for work and nothing else.
Classify your Equipment
If you are a first-time business owner then you may get tripped up when you are trying to categorise all of your expenses. You may also get lost when you are trying to document your supplies and everything that comes up along the way. This can include your printer ink, your paper, pens and more. Equipment is called capital expenditure and it normally includes much higher value items that will last longer than a year. This can include your software, office furniture, computers and even servers as well. You can write off all of this equipment in one go if you want, rather than taking into account the depreciation over a number of years.
And lastly, another thing that you can claim is your insurance. Any type of insurance that you claim to do with your business can easily be used to give you a better result out of your tax return and you can also save a ton of money by doing this as well. If you are not sure if you qualify for this or not then you can easily talk with your insurance provider to see if they can help and you can also try and find out if you qualify for any transportation deductions as well.
Filing a tax return isn’t easy, but when you know what you can claim for, you’ll soon see that the whole thing becomes much easier.
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