The types of expenses you incur will vary greatly, whether you’re an associate working a few hours a week to someone running their own practice, employing staff on the payroll. However you work, it’s important that you maintain good records of any money spent and that you keep all receipts (these can be kept in electronic format). This will all help simplify (and reduce stress levels!) when filing tax returns. It’s also a legal requirement to keep this documentation for a number of years.
Most expenses you’ll be able to claim back and offset against your sales, hence reducing your tax bill at the end of the year. These can include marketing costs, accounting and professional fees, bank charges, room rental fees, advertising costs and the cost of any staff. Some costs, such as computer equipment would most likely need to be claimed as a capital expense. How you claim the above will vary, depending on how you’re setup to operate and there will undoubtedly be other expenses that can also be added to the list, for example if you’re working from home, there are costs that can also be offset, even if only partially.
If you’d like to discuss any of the above or have any questions, please contact us via the link below
