You can claim only the expenses that are related to earning your taxable income. But, you cannot claim the personal and private expenses, such as home loan interest payments or after school care. The following terms are the tips for pay less tax. They are,
1. You can claim operating expenses when you acquire them
Operating expenses are otherwise called as revenue expenses because it’s help to generate income. And you can claim in the financial year you acquire them. They include salaries, wages, allowances, electricity.
2. Prepay some expenses this year to reduce taxes
If you pay in advance, then bring the deduction forward to this year. And you can prepay your business loan, business insurance, Telephone and IT services.
3. Consider capital expenses
The examples of capital expense, assets that include motor vehicles, office and warehouse fixtures, computer, servers, printers and copiers.
4. Bite the bullet and write off any bad debts
Bite debt is a taxable sale. And that has been unpaid for 12 months or more by you, there is no chance of it being recovered.
5. Oh no! Do the boring stocktake
It may be time to call parents and friends to help you to find damaged stock items.