Dear Aunty B
How can I reduce my company income but not pay myself more? For example, if I travelled to another state to conduct regular business, say one in four weeks, and rented premises, there are the expenses such as taxi to airport, flights, car hire and accommodation all claimable.
This would be one way to have time out in a nice spot but grow my business too. I want to target legitimate tax deductions that allow me to have the nice things in life: creating a lifestyle through company money without becoming a Christopher Skase. I always wonder how other people do it and do not seem to crash and burn from over indulgence.
Me too, Frances, me too! Now, being a typical entrepreneur, I am not great with tax so I am handballing this one to resident tax adviser Terry Hayes from Thomsons.
And you know what? He says the difference between those who live the high life and you and me Frances is that the high lifers get – and are prepared to pay for – comprehensive tax advice. It has to be tailored specifically for your situation, he says.
Now if you still want to DIY tax deductions, then Thomson’s has the A-Z list of them as long as your arm. Terry also says he will do a story for us in the next few weeks
In the meantime, Frances, consider these:
Entertaining is tax deductible but complicated. You could write off bad debts before year end, land tax on business is tax deductible, membership fees for journals are tax deductible, but club membership is dicey.
Research and development is a good one (not sure how Terry thinks you are going to live the high life in a lab.) And super of course is always a great option – for the good life later.
Now Terry has been set to work, so start planning the trip to Spain.
What are you waiting for? Email your questions, problems and issues to [email protected] right now!
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