Tax Allowances For Self Employed
Strategies to Increase Wealth
Learn why starting an online business is one of the most powerful ways to legally save thousands in taxes every year and permanently increase your financial security.
The perks of a home-based business are many: freedom, independence, better lifestyle, creative, enjoyable, meaningful work, leverage, flexible hours and amazing tax advantages!
By having a home business you are legally entitled to many tax advantages you would otherwise not be entitled to.
This can make a big impact to your financial security and the amount of money you have and get to keep.
Income taxes are one of the highest expenses you’ll ever have in your life (more than the cost of your house or your children’s University fees). There are genuine ways to lessen your tax costs and legally keep a LOT more of your yearly earnings.
Income tax puts an unfair burden on the middle and lower classes (the majority of the population) and is one of the reasons 95% of people in the world struggle to survive, live paycheck to paycheck, have less than $500.- savings in their bank and are literally 3 paychecks away from being destitute.
Lack of money is one of the main causes of suffering in the world and why it’s even more important today to make smart financial decisions that can dramatically impact your life. By becoming an entrepreneur and implementing legal tax deductions, you can experience much greater financial security and peace of mind and will have a lot more money to use on more important things in life.
By legally reducing your income tax, you will have way more money to decide what YOU want to do with it…..
With more money every year, you can pay off your credit card / student loan or any other debt, give your family a better life, explore the world, support amazing charities, have more time for your friends and loved ones, increase your savings, travel more, experience life more deeply, buy organics and support ethical companies, get solar panels for your house, buy an electric car, do more fun hobbies, make your community and city better, live in a better neighborhood, build water wells, fund schools for the poor, positivily impact many lives, buy land and plant trees or do anything meaningful to you that extra money would provide….
By becoming an entrepreneur, you will free up and have a lot more of your money to be used for any other purpose you choose.
Every strategy I explain below will reduce your taxes honestly, legitimately and with the full approval and blessings of the tax department. This also applies to most countries in the world. I have found that governments are very helpful to Entrepreneurs and will go out of their way to be of service to you.
Tax Strategies vs. Cheating On Your Taxes – Big Difference!
Cheating Your Taxes / Tax Evasion = illegal activity, something to never do!!!
Using Legal Tax Strategies = honest tax deductions your Government gives you the full approval to implement, more financial security and peace of mind, more freedom and more money to do good in the world and have more funds to lead a spectacular life.
*When you implement strategies to lower your income taxes, please inquire first with your local Government what you are legally allowed to deduct, keep all your receipts and keep sound, honest bookkeeping practices.
Tax strategies are positive, legal use of the tax laws to reduce your income taxes.
Take advantage of the tax laws by doing exactly what the government has made laws to allow you to do and keep thousands of dollars per year in income by becoming an entrepreneur.
With the way the world is heading, there has never been a better time to start a flourishing online business, get paid to follow your passions, be free and use these legal tax deductions to keep more income, save thousands every year and do more beautiful things with your life.
Below are legitimate tax write-offs that your home based business qualifies you for:
Tax Allowances for Self Employed: Home Office
Growing your company out of your home allows for immense flexibility and benefits over renting or buying office and warehouse space.
In short, the cost of any workspace that you use regularly and exclusively for your business, regardless of whether you rent or own it, can be deducted as a home office expense.
A good way to do this is to prepare a diagram of your workspace, with exact measurements to substantiate your deduction (in the case your tax department does an audit so you can legitimately show your deduction).
The expenses you can deduct for your home office include the business percentage of deductible mortgage interest, home depreciation, property taxes, utilities, homeowners insurance and home maintenance that you pay during the year.
For example, if your home office occupies 17% of your home, then 17% of your annual electricity bill, property taxes, mortgage interest etc becomes tax deductible.
People who work for companies whose headquarters or branch offices are not located in the same city, or outside salespeople who often use their home office as a base, can often use these deductions. Even employees who do administrative paperwork in addition to their regular duties that require an outside office environment can use their expenses as a deduction.
Tax Allowances For Self Employed: Upgrade Your Office
If you’ve been thinking about a new desk, office chair, bookcase, task lamp, or other office furniture, keep in mind that these are all allowable deductions if they are used for your business.
Tax Allowances For Self Employed: Business Travel
If you work from home, you can deduct all business related travel expenses from your taxes. You can deduct travel expenses incurred by traveling to business meetings, conferences, meetings, masterminds, or other business events.
Tax Allowances For Self Employed: Car Business Expenses
If you use your car: all mileage done to run your business is tax deductible. If you have 1 car, you can track the km/miles and keep a diary of mileage used for business.
keep a notebook in your car and document everything from the miles you drive to where you were going, tolls paid, etc.
When you know exactly the percent (how much you use your car to run your business) you can also deduct the business portion of the car expenses such as insurance, petrol, repairs, maintenance, and depreciation from your taxes.
You can also deduct car leases used for business, parking and toll fees, as well as bus, taxi and other travel fares that are involved in transport costs for running your business.
To use the actual expense method, you calculate the percentage of driving you did for business all year as well as the total cost of operating your car, including gas, oil changes, registration fees, repairs and car insurance, so if you spent $3,000 on car operating expenses and used your car for business 20% of the time, your deduction would be $600.
Keep a Mileage Log: Keeping an accurate logbook of business travel maintained for an entire year is the best evidence to support your motor vehicle expense claims.
For each business trip, keep a log listing of the date, the destination, the purpose of your trip and the number of kilometers you drive.
If you travel to meet a client, perform a job outside the home, purchase business supplies, conduct research, filming for video production or do any other kind of activity for your business, you can deduct these travel costs too.
Tax Allowances For Self Employed
Did you attend a conference this year? Do you travel to meet a client? If so, you can deduct these expenses.
Deductible travel expenses include the cost of transportation to and from your destination for business purposes (such as plane fare), the cost of transportation at your destination (such as a car rental, Uber fare or subway tickets), lodging and meals.
Tax Allowances For Self Employed
Business Related Education Expenses
You can deduct the costs of qualifying education. This is education must serve a bona fide business purpose of your business.
This is education (books, trainings, courses) that maintain or improves your skills needed in your present work. You can also deduct the expenses for qualifying education even if the education could lead to a degree.
Deductible expenses – The following education related expenses can be deducted
Tuition books, supplies, lab fees, books, trainings, courses and similar educational items.
Advertising Expenses. If you run fb ppc or paid ads, do paid publicity and marketing of your business the entire cost is tax deductible.
Tax Allowances For Self Employed
Utility Business Expenses
Electricity: Electricity is an indirect expense that is shared between your home and your office. You are allowed to deduct the equivalent percentage that your home office is to your entire home.
Water: Like electricity, this is an indirect home expense and can be deducted in the same manner as electricity.
Gas: If you use gas to heat your home, this is also considered an indirect expense and can be deducted in the same manner as electricity and water are deducted for your home office.
Internet: Most home businesses today require the use of the internet. You can deduct the percentage of your bill used for your business.
Phone: You can deduct your business phone and fax from the taxes. The key is to only deduct the expenses directly related to your business. If you have only one phone, you shouldn’t deduct your entire monthly bill, which includes both personal and business use. You should only deduct costs that specifically relate to your business.
If you have a second phone line that you use exclusively for business, however, you can deduct 100% of that cost.
Tax Allowances For Self Employed
Business Running Expenses
Computer Software, programs, required memberships, any software or services you need to run your business in a tax deduction. For example website design, autoresponders, hosting, domain names etc
Professional Subscriptions: If you pay for any industry related subscriptions, you can deduct the cost paid.
Tax Allowances For Self Employed: Office Supplies
Don’t forget all the paper, ink toner, postage, paperclips, etc. that you purchase. These are all fully deductible (provided you can prove you’re using them for your business).
Tax Allowances For Self Employed - Business Equipment
You can deduct any business equipment needed to run your business. This can include laptops used solely for business, drones, cameras, filming equipment, tripods etc
Tax Allowances For Self Employed: Business Meetings Taking a Client Out for Lunch
Business Breakfasts, Lunches and Dinners
Taking a client to lunch or having a business meeting with partners is a legitimate business expense. Check with your local Government how much of this deduction your countrys tax laws allow. In the USA you can deduct 50% of the meal, not the whole thing.
As an example Sam, a business professional, brought her new client to lunch to finalize their contract. The meal came to $74 including tips and taxes, so she was able to deduct $37 as a business expense(if this was done in the USA using their 50% tax rule). Sam keeps the receipt and on the back, writes down the date, the client’s name, as well as a few notes on the business matters discussed.
Tax Allowances For Self Employed: Family Employees
Hire your responsible son to keep inventory for your business, or your daughter to implement specific social marketing strategies to grow your business. This results in an additional business expense deduction for you, as well as income for your child. Be sure to document all the hours worked by family members (or any employees you hire) and make sure to contact your tax department first to clarify what you are legally entitled to deduct.
Tax Allowances For Self Employed: Your Health Insurance
Self-employed individuals (including sole proprietors) may be able to deduct the cost of health insurance for themselves and their family.
However, you can’t deduct your insurance for any time when you’re able to participate in an employer-subsidized plan (i.e. through your spouse or partner). Check with your local government what health insurance deductions you’re allowed to make.
Any expenditures you make for your business are “business expenses” and can be deducted as such from your taxes.
The expense amounts may be eligible to be subtracted from your income… and can reduce your taxable income.
And if you were getting a refund… you would receive a larger one. If you have to pay some taxes… that amount would be reduced. It’s basically like getting a large discount on what you have to pay and that can amount to as much as 30-50% discount, depending on your individual tax numbers.
In any tax deductions you make, keep accurate records. You want to be prepared to turn over a neat log of all business expenses, complete with dates, amounts and confirming documents, receipts or papers when appropriate, to have all the records necessary for your Government to substantiate all your tax deductions.
When you keep good records, your home business will be in good shape to reap maximum benefit from our tax system, receive many tax benefits and allow you to save thousands of dollars every year.
Many people worry about their taxes only during tax season. However, you can save a fortune in taxes, legally, if you make tax planning your year-round concern.
Tax time is a stressful time for many people. Change this, start a business, deduct all the tax allowances you’re entitled to, keep a lot more of the money you earn and make tax time something you look forward to.
Maintain Accurate Records
While the tax department allows taxpayers numerous opportunities to save on taxes, it’s your responsibility to keep accurate records to prove your deductions (in the event of an audit). Collecting and organizing your records throughout the year will make it very easy to prepare your return.
To stay on top of tax matters, make it a habit to do all of these things throughout the year:
Maintain at least three years worth of tax returns and records
Keep your checkbook stubs
Retain and categorize your receipts from all purchases throughout the year
Track cost basis for property and taxable investments
File all your bills in organized folders
Journal your deductible items as they occur (I do this daily – it only takes 1 or 2 minutes, keeps everything super well organized and makes keeping tax records a breeze).
Starting an online business is one of the most rewarding, creative and fulfilling things you can do. It’s also one of the best ways to receive legal tax deductions, create wealth faster and become financially independant.
If you haven’t started a laptop business, take the leap today. There are endless amazing benefits (apart from the tax benefits) will bring so many beautiful things into your life.
If you’re interested to learn how we get paid to follow our passions, travel the world and never have a job, sign up to my free newsletter here, or message me through Facebook here or contact me for a complimentary business consultation and I can share with you exactly what we do, why this is one of the most beautiful and rewarding professions to work in and how this can work for you too.
Wishing you immense success and happiness in everything you do.
Much love from
If you start a home business, I wish you a wonderful, incredibly rewarding and spectacular journey that greatly enriches your life and makes this one of the best decisions you ever make.
Anything I can help with, please don’t hesitate to reach out.
Here are some additional links you can read up on the many tax allowances for self employed in different countries:
Tax Allowances For Self Employed – Australia:
Tax Allowances For Self Employed – Canada:
Tax Allowances For Self Employed – United Kingdom:
Tax Allowances For Self Employed – United States:
Tax Allowances For Self Employed – Switzerland:
Tax Allowances For Self Employed: New Zealand:
Tax Allowances for Self Employed – Dubai:
Tax Allowances For Self Employed – Israel:
Tax Allowances For Self Employed – Mexico:
Tax Allowances For Self Employed – France:
Tax Allowances For Self Employed – Spain:
Tax Allowances For Self Employed – South Africa:
*If I haven’t listed your country above, get in touch with your local Government. I’m sure they’d be happy to help.