If your tax bill is slowly but surely going off the charts, it’s high time to optimize your taxes! Did you know that there are a range of deductible expenses you may be overlooking that can significantly reduce your tax bill? Below you’ll discover 10 unmissable deductible expenses; from handy software subscriptions to fun office accessories and even your favorite newspaper. In this article, Go Getter tells you all about them.
1. Invest in smart software subscriptions for a more efficient workplace
Make your workplace smarter, your work process easier, and take advantage of tax breaks. Software subscriptions can be deducted as professional expenses, but only if they are directly related to your professional activities. Consider useful tools such as Zoom, Mailchimp, Malt, and, of course, Go Getter itself.
Keep in mind that in most cases, you can also get a partial refund of VAT. So you can go for yet another piece of extra optimization!
2. Keep your eyes open for deductible eyeglasses and contact lenses
As an entrepreneur, you can deduct the cost of glasses or contact lenses, especially if they have a clear connection to your professional activity, such as safety glasses or blue light filter glasses. Such glasses can help against eyestrain or migraines if you stare at a computer screen all day. Even your sunglasses can be tax-deductible if you work outside a lot.
However, the deductibility of regular glasses and contact lenses differs because they can also be used for private use. Be sure to amortize the cost over several years to emphasize its business nature.
3. Brighten your office with flowers
Flowers and plants are not only good for your mental well-being, they are also good for your wallet! After all, these expenses are 100% deductible for your income tax and VAT.
4. Get inspired by streaming and music
Do you use Spotify or Apple Music for background music in your office or waiting room? If so, the costs you incur for that are deductible! Subscriptions to music streaming services are deductible as professional expenses, but always make sure you can prove that you actually use them for work.
Unfortunately, the deductibility usually does not apply to video streaming services like Netflix unless you can prove that they are essential to your work.
5. Treat your people with snacks and fruit
Treat yourself, your clients and your staff with tasty snacks! Fruit and other treats, such as chocolate, chips, soup, tea, coffee and cold drinks, are not only conducive to the atmosphere, but also 100% tax-deductible.
Make sure to always ask the supplier of the snacks for a correct invoice to reclaim the VAT.
6. Expand your knowledge with newspapers and magazines
Are you an avid reader of newspapers and trade magazines? Good news! The cost of these subscriptions is 100% deductible, as long as you can show that they add value to your business.
Keep in mind that this does not include recreational magazines, children’s magazines and vacation literature.
7. Drive green and park green
Parking expenses can be deducted. The percentage you can deduct is tied to the CO2 emissions of your vehicle. The greener your vehicle, the greater the deductible percentage.
Dedicated parking for customers, suppliers, and staff may be fully deductible, depending on their vehicle type.
8. Go on business trips by public transportation
Business travel, such as client visits, is fully deductible, unlike commuting from home to work and vice versa, which is usually not deductible.
Public transportation tickets can be used to reclaim expenses and VAT, and even contactless payments are often accepted during a tax audit.
9. Choose quality office equipment
Office equipment such as monitors, keyboards, tablets, printers, computer mice, earphones and noise-cancelling headphones are deductible. Be sure to depreciate large investments, such as laptops and smartphones, over several years to properly file them as deductible expenses.
10. Splurge on stylish furniture for your workplace
Office furniture and supplies are deductible. An ergonomic office chair, adjustable desk or nice sofa for client meetings can be 100% deductible if you use them exclusively for your professional activity.
Conclusion
Being an entrepreneur also means being smart about your finances. These 10 deductible expenses can help you optimize your taxes and improve your business operations.
Dig into the details, save your receipts and invoices, and make the most of the tax breaks that are up for grabs. Remember, a good accountant is worth their weight in gold – they can help you not overlook any deductible expenses. Optimize your expenses and reduce your tax bill the smart way!
Want to learn more about these deductible expenses, or have any other questions? Contact us, and we’ll connect you with a partner accountant.
