The Best Tax Deductions For The Self-Employed

This article was updated on May 22, 2020.

When you’re self-employed, you likely want to find as many tax deductions as possible. While everyone else is waiting for a refund, you’re probably thinking about all of the money you’re going to have to pay the IRS, even if you estimated your taxes and paid quarterly.

Tax deductions

There’s plenty to keep up with throughout the year including your mileage log if relevant, your receipts and any other information that you might be able to use for your deductions come tax time.

When you’re self-employed you’re shouldering the burden of certain costs you wouldn’t have if you worked for an employer.…

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7 Little-Known Tax Deductions for Small Businesses

Many small businesses dread filing their quarterly taxes, but deductions help owners lower their tax burden. In addition to the standard deductions that most businesses take, there are lesser-known write-offs that can reduce tax bills even further.

Small business tax deductions

1. Home Office

If you run your business out of a dedicated home office, you may be able to take the home office deduction. The catch with this deduction is that the space must be used exclusively for business purposes.

There are two ways to deduct a home office:

  • Deduct actual expenses. You’ll need to have records for the cost of painting, repairs, utilities, rent, insurance and other expenses you want to write-off.
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7 Safe And Effective Tax Deductions That Every SME Should Be Claiming

HMRC collected over £533 billion in taxes during the 2015-16 tax year but we think it’s possible that many SMEs, business owners, and employees are currently paying more tax than they need to. They simply aren’t aware of a number of different tax incentives offered by HMRC that could reduce their tax bill. It’s no surprise that HMRC are not very good at letting people know about these incentives, so we are happy to introduce 7 safe and effective tax deductions that you should consider.

1. Tax free Christmas office party, panto or concert

When a company throws a party for all of its employees and the cost is less than £150 per head then it is a tax and NI-free benefit.…

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