One of our most common questions. Like most good things in life, the answer is "well, it depends".
It depends on what type of business you are operating.
It depends on what is commercially reasonable in your particular circumstances.
It depends on who the payments are made to, and what their purposes are.
It depends on whether you are able to demonstrate all of these relevant facts.
It depends on what the particular tax authority has said about that type of expense, that particular business purpose, that method of paying ...
What is perfectly deductible to one business could be non-deductible to another, for a whole variety of reasons.
All of this sounds complicated.
The easy answer is - trust us to figure it out. We have extensive experience advising businesses on how to think about and identify possible business and tax deductions.
When in doubt, include it. We would prefer to have a discussion with you about what is deductible and what is not with a complete picture of your income and expenses. It is always easier for you to decide to exclude things that we both know about, versus possibly forgetting about certain expenditures.
Let's make sure you claim the maximum that you're legally entitled to claim. And that you make informed decisions.
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