Tax Deductions Your Business Could Claim in 2023
Tax season can be a stressful time for small business owners in Australia. With numerous expenses to track and complex tax rules to navigate, you must ensure you claim all the deductions your business is entitled to. To make this process easier and more efficient, Thriday offers a convenient solution that automates your tax deductions, helping you save time and money. Let's find out what you can claim and how Thriday can make tax time, relax time, for your business.
What Can Your Business Claim on Tax?
Before diving into how Thriday simplifies the tax deduction process, let's recap what expenses your business can typically claim on tax. As a general rule, any expenses directly related to earning your assessable income are tax deductible. These include:
- Daily Business Operations: Expenses related to the day-to-day running of your business, such as office supplies, utilities, and rent.
- Purchasing Products or Services: Costs associated with buying products or services for your business, including raw materials and inventory.
- Capital Expenses: This category covers the cost of depreciating assets like machinery and equipment used in your business.
When claiming tax deductions, remember these essential rules:
- Expenses must be for your business and not for personal use.
- If an expense serves business and private purposes, you can only claim the portion used for your business.
- Keep detailed records to substantiate your claims.
- Now, let's explore specific expenses your business can claim as tax deductions and how Thriday can streamline this process.
Popular Tax Deductions
Interest on Borrowed Money and Bank Fees
If you've borrowed money for your business and used it for income-producing activities, like purchasing machinery or meeting tax obligations, the interest on that loan may be tax deductible. Bank fees for your business bank accounts can also be claimed as deductions. With Thriday, you can automatically track these expenses as your bank account* is integrated into Thriday's platform, ensuring you can take advantage of potential deductions.
Leasing equipment, machinery, or renting premises for your business can result in tax deductions. This includes costs related to motor vehicles, computers, printers, and even a portion of your home if you run a home-based business. Thriday's intelligent algorithms categorise your lease expenses accurately, simplifying your tax return preparation.
Digital Product Expenses
Expenses related to digital products essential to your business, such as internet service provider fees, software subscriptions, website maintenance, and cloud storage, can be deductions. This category also covers capital expenses like computers, mobile phones, and in-house software. Thriday's automatic expense tracking ensures that all digital receipts are accounted for during tax season.
Business insurance, income protection insurance, car insurance for business use, and even home insurance (if you operate your business from home) can all be tax deductible. Additionally, tax audit insurance can help manage costs if your business undergoes a tax audit. Thriday's robust system records your insurance expenses, making it easier to claim these deductions accurately.
Annual Fees and Memberships
Annual fees charged by statutory bodies, union fees, and professional memberships related to your business can often be claimed as deductions. These fees must directly contribute to your assessable income. Thriday's automated tracking ensures you never overlook these deductible fees, helping you maximise your tax return.
If you employ staff, you can claim deductions for salaries, wages, and super contributions to complying super funds or retirement savings accounts for your employees and certain contractors. Thriday's payroll integration simplifies staff-related expense tracking, making tax time smoother for your business.
Business-related travel expenses, including fares, car hire, accommodation, and meals during overnight stays, can be claimed as deductions. However, these expenses must be exclusively business-related, not personal. Thriday can help you maintain a detailed travel diary, ensuring compliance and maximising your deductions.
Navigating the world of tax deductions can be overwhelming, but Thriday offers a user-friendly solution to simplify the process. By automating expense tracking and ensuring compliance with tax rules, Thriday helps small businesses in Australia claim every deduction they're entitled to, ultimately saving time and money. Say goodbye to tax season stress and hello to streamlined finances with Thriday.