The big neon sign outside a door saying last chance sale always grabs your attention. Saving money on something is like a drug. Ultimately it isn’t great for us as unless we needed the product we just spent money on something we didn’t need because it wasn’t the same price as yesterday!
However there is one discount we can get anytime, anywhere no matter what’s on the sign that day!!
Often when we take on new clients we have a chat about the type of business expenses they can be claiming and what they shouldn’t be. I really hate it when I hear that they didn’t want to ask if they could so just left it! You just missed out on a massive discount on whatever you purchased.
Think about it. If something is purchased personally there is no Tax or GST benefit. You pay the money and that is what it costs. You have to earn more to pay for it as your earnings have tax and potentially GST applied!
However if it was possibly a business expense we would be able to claim it against our income and claim GST. This could be up to 54% (39% Tax and 15% GST) or based on the median income (which I thought was quite high at $91k) would be a 48% discount.
We can’t claim everything but tax is a written concept that is contained within legislation. This won’t fit every situation that occurs. So if you are ever unsure please do reach out and see what costs we can claim. The average accountant and or Pukekohe accountant might not like the extra work but at JBM we love to talk so feel free to ask away.
Below is a list of the expenses or situations we see not claimed:
- Going out for dinner with your business partner to discuss the business (could even be at KFC – we don’t judge).
- Taking potential clients out for dinner/drinks.
- Tools or assets you already own when you started business.
- Home office costs or the cost of running your business at home.
- Telephone or internet costs.
- Motor vehicle costs or claiming to little of these costs depending on the option you use.
- Accidentally spending business expenses out of your personal accounts.
- Branded assets and advertising like clothing etc.
- Subscriptions etc. but likely not Netflix!
- Travel related costs including overseas that have a business portion.
- Many many more.
Every little bit helps so don’t hesitate to call as we love it if we can save you some money!