Main Tax Deductions for Sml Business Owner

Taxes are one of the most important issues facing the small business owner. While meeting all responsibilities regarding payment of taxes to the Inland Revenue, small business owners should also use every legitimate opportunity to minimize their tax obligation.

Some of the deductions that are allowable to the business owner include:

  1. Motor Vehicle Expenses.
    Providing the expenses are incurred in producing gross income, they can be deducted. There are rules around a self-employed person so be sure to check these out if you are self-employed before trying to claim them as a deduction.

  2. Using your Home.
    If you are running your business from home you are able to claim a portion of total outgoings as a tax deduction. The calculation for this is based on the ratio: Area used for income earning activities / total area of the home. This will give a percentage which can be used to calculate how much of outgoings are tax deductible.

  3. New Business Expense.
    Some costs which are incurred when you are starting your new business are tax deductible. These costs can include legal expenses incurred in ch...

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