Small Business Tax Deductions: Who Qualifies and What You Get
Learn how small business owners and sole traders can reduce their taxable income by claiming legitimate business expenses.
This scheme allows small business owners to reduce their taxable income by claiming the costs of running their business.
Who it's for
This is designed for sole traders and small business owners.
What you get
You can claim various business-related expenses to lower the amount of income you are taxed on. This includes the cost of materials like fabric and thread, repairs for machinery, and a portion of your home-office electricity.
What it costs you
There is no direct fee to use this scheme, but it requires significant time and effort. You must maintain meticulous records and keep all your receipts for five years to prove your claims.
The catch to know
You cannot claim the part of your electricity or internet usage that is for personal or private use; you can only claim the portion used strictly for business.
How to apply
- Collect and save all receipts and records related to your business expenses.
- Calculate the specific portion of your home utilities used for work.
- Prepare your tax documentation at the end of the financial year.
- Submit your claims through your tax return.