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Thread: Sole prop expenses

  1. #1
    Email problem
    Join Date
    Jul 2012
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    Sole prop expenses


    I have started my SP recently and would like a guide as to what expenses can be deducted against my income to determine taxable income.

    I am aware of the deductions for a "home office".
    What vehicle/travel expenses do I include?
    Can I deduct Life insurance/ salary protection policy payments?
    What about clothing for work?

    All help will be appreciated

  2. #2
    Silver Member
    Join Date
    Jan 2012
    Thanked 53 Times in 40 Posts
    Hi Nico, as a sole prop you are taxed in your personal capacity according to the tax brackets but you can claim expenses like a company for example petrol, parking, vehicle maintenace, travel expenses, home offce, office equipment and depriciation, gifts for your clients, entertainment of clients expenses, anything in the production of turnover etc... In any case I hope you get an accountant to do your tax.
    Your life insurance is not tax deductible but if you have PI insurance, income disability(don't forget that the max insured amount is 75% of your current income else you are wasting money), retirement annuity(max of 15% of gross income the rest will be taxable) is tax deductible and of course you get back your med aid credits.
    ---There is no traffic at the extra mile---

  3. Thanks given for this post:

    Dave A (10-Aug-12)

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