The tax return period is probably the most dreaded time for a business owner and entrepreneur. Fortunately, SMEs can use a few legitimate tips to make sure they get a tax reduction. Indeed, there are many small details that can save money on a tax return.
Reducing taxes with mileage charges
If you decide to use your vehicle for work-related travel, don’t hesitate to keep proof of all the trips you’ve made. Be sure to specify the date and destination, as well as the number of kilometres driven to and from the destination. You can also keep your fuel receipts to ensure that you have used your car properly. All of this information will be useful to you during the next tax audit, if you want to benefit from a tax reduction. Nevertheless, it is necessary to specify that journeys made between home and work are not taken into account in this type of area.
Reducing taxes with home office expenses
If you are an entrepreneur, there are many parameters that can come into play to enable you to obtain a tax reduction. If your office is located in your home, it is possible to reduce certain expenses such as maintenance, telephone, internet and representation costs. The same goes for home insurance, school and municipal taxes, as well as part of the rent or mortgage. You can calculate the deductions based on the space you are expected to use for business purposes. But first of all, make sure your business is in good standing and meets all the necessary conditions.
Reducing taxes through expenses and investments
To be able to benefit from a tax reduction, always keep track of your expenses. Keep all invoices for your purchases, but also for expenses related to events you have organised or the maintenance costs of your office automation tools. Also know that your investments can be useful for tax deductions. If, for example, you decide to train a beginner and then take him on as a member of your team, the investment credit can be very high. And if you work in the field of scientific research and development, your company can also benefit from another tax credit that will be useful for your research.