To have your tax information prudently done is very important. By the same token, to know the tax deductibles will help to lower your tax burden. It is possible to claim a number of expenses tax-free that will go a long way in alleviating your tax problems. The area of tax is very dicey and always put businesses and individuals at loggerheads with the government bodies mandated to collect it.
As you work on tax on the earnings you have, deducting an equal sum is possible on any of the amount you might have used as travelling expenses and other funds you might have utilized necessarily, wholly and exclusively in the discharge of your duties for your employer or in your place of employment. It can apply if you have paid for the costs yourself devoid of any reimbursement from the employer or the employer has reimbursed all the expenses incurred and the taxman came and taxed the amount reimbursed.
Expenses You Could Claim
A number of expenses can be claimed. The employer can reimburse a number of expenses tax free such as limited mileage allowances including expenses the employer might have formal agreements with other bodies or companies meaning tax reclaiming on such a case is not possible. Thus you will not be deducting the expenses as you prepare the tax bill. Some of the expenses that can be claimed include business travel although commuting between your workplace and your home is not included. Claims for business trips, meal expenses and reasonable hotel expenses as well can also be made. Unreimbursed mileage incase you are using the transport at work but within the approved level of mileage.
Other Areas Of Tax Relief
You can also claim some tax relief on items related to your job such as uniforms and protective clothing. In a number of cases, workers within certain occupations are able to subtract flat-rate allowances with the clothing expenses upon which a claim can be made. Also, some subscriptions and fees to a number of professional bodies can see some tax relief especially if being a member helps in doing your job well. Other deductibles include expenses you might be incurring to work from home, such as telephone costs, lighting and heating although they are some of the most restricted.
In case you are eligible to some tax deduction, some adjustment to your tax code has to be made so that the amount to be paid can be reduced. Arranging this is very important and you can use a financial advisor or firm that deals with taxes to help you sail through this touchy process. Also, you might want to contact the tax office or even make a claim on tax returns yourself if you have them.
Each person with a business would like it to make some profit. The accounts also have to be well kept to reflect the expenses and income. To claim the right expenses means the profits are very accurate and the tax bill is one you are legally able to meet. If you have filed taxes before, you will realize how tricky it is to ascertain areas where clarity on tax relief is obvious and where it is not so clear.
Mike is financial advisor for a reputed business consultancy in London. He occasionally blogs about business and finance. He greatly admires the work of Calcutt Matthews,reputed accountants in kent.