Common Tax Deductions for the Self-Employed

As a self-employed individual, it's important to manage your business finances efficiently, including taking advantage of any tax deductions that you're eligible for. Here are some common tax deductions to consider.  This is not an exhaustive list, so it’s always better to consult a professional.

Home Office Deduction 

If you work from home, you may be able to claim a portion of your home expenses as a business expense. This includes expenses such as rent, mortgage interest, utilities, and insurance. You can claim a portion of the expenses based on the proportion of your home that is used for business purposes.

Vehicle Expenses 

If you use a vehicle for business purposes, you may be able to claim certain expenses related to the vehicle. This includes expenses such as fuel, maintenance, insurance, and repairs. You can either claim the actual expenses related to the vehicle or use the simplified expenses method, which is based on the number of business miles driven. Keep accurate records of your business mileage and expenses to claim the deduction.

Business Supplies and Equipment 

Any supplies or equipment that you purchase for your business, such as office supplies, software, or machinery, can be claimed as a business expense. This includes expenses related to maintaining or repairing equipment. If an expense is used for both personal and business purposes, you can only claim the portion used for business purposes.

Professional Services 

You may need to hire professional services from time to time, such as accounting or legal services, to help you manage your business finances. These expenses can be claimed as a business expense if they are directly related to your business activities.

Travel Expenses 

If you travel for business purposes, you may be able to claim expenses such as transportation, lodging, and meals. Keep accurate records of your business travel expenses, including dates, locations, and purposes of the trips.

Insurance Premiums 

If you pay for insurance, such as liability or professional indemnity insurance, as part of your business expenses, you can claim these premiums as a business expense.

Being self-employed, there are many tax deductions that can help you lower your tax bill and keep more of your hard-earned money. However, it's important to keep accurate records of all your expenses and consult with a tax professional to ensure that you're taking advantage of all the deductions you're eligible for. The deductions listed here are just a few of the most common deductions for self-employed individuals, but there may be others that apply to your specific business. Take the time to understand your tax obligations and explore all the deductions available to you.

Nothing on this page is intended to be or should be construed or taken as accountancy, investment, tax or any other kind of advice. We recommend individuals and companies seek professional advice on their circumstances and matters.