What can you deduct from your taxes as a self-employed person?

Aske Buemann

CEO & Co-founder

What does it mean to deduct things for tax purposes?

When the term 'tax deduction' is used, many people can get confused about its meaning.

A tax deduction is the ability to claim a deduction for certain expenses. This concept is particularly relevant for self-employed people who gain tax benefits from starting a business.

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Thededuction optionapplies to self-employed persons , among others

For the self-employed, this brings a number of tax benefits. Deductions are available for several expenses, so it is crucial that you are aware of the guidelines for expenses that qualify for a deduction.

Which expenses are tax deductible?

As a business owner, you may face various expenses for materials, equipment and the like that are necessary to keep your business running.

This also applies in cases where you run a small business alongside your main occupation and therefore have a B income. The key here is that you have an accounting record as a self-employed person, which allows for deductions.

For example, the following expenses are tax deductible:

  1. Purchase of goods, i.e. the cost of goods that you sell
  2. Equipment and machinery
  3. Auditor and legal fees
  4. Phone and internet costs
  5. Rent for premises
  6. Electricity and heating
  7. Repair and maintenance of premises
  8. Insurances

In addition, entertainment expenses are tax deductible. This includes the cost of food, drinks and gifts. For example, if you hold meetings in restaurants, you can potentially claim a deduction for a portion of the expenses.

Marketing and advertising costs are also tax deductible.

Expenses for private use cannot be deducted.

It is very important that you separate personal expenses from business expenses. Personal expenses do not qualify for tax deductions even if you work from home. You must be able to prove that the expenses are related to your business and not solely to your home.

If an expense has both business and personal use, you can deduct the portion used for business from your taxes. For example, if you have a phone that you use equally for work and leisure, you can deduct half of the cost of the phone from your business taxes.

Registering deductions in dint accounting

As a business owner, you need to keep accounts where you can record tax-deductible expenses. This will allow you to report the information to SKAT and the necessary deductions will be deducted from your tax bill. It is essential that you are able to document the expenses, as deductions cannot be obtained without proof that the expenses are related to the business and not for private use.

You can read much more at SKAT.dk

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