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Tax Deductions that are Commonly Overlooked

The ever-changing business scene is putting pressure on small business owners and single traders to improve their accounting systems annually. This is to make sure that every dollar spent is accounted for. What are some of the tax deductions that employers may overlook when lodging their tax returns?

Donations to Charities

Monitoring bigger, direct charitable contributions is easy, but it’s the small things that are harder to keep track of. You have to donate $2 or more and be sure to give the donation to a deductible gift recipient charity. This will allow you to claim the money on your tax return. Don’t forget to save receipts or bank statements as proof.


A “gift” can be deducted if you really voluntarily transferred money or property where you don’t get material advantage or benefit. However, you can’t claim certain things, such as art union tickets or raffles, things such as pens and chocolates, and the money spent on going to fundraising dinners.

Home Office Deductions

The number of small businesses based at home is increasing but many are still unaware of the tax deductibles they can claim for using their home to run a business. They mistakenly believe that the tax deduction process is complicated, or that it would have a negative impact on their property taxes in the future. You should not let these issues prevent you from claiming the deductions that apply time. You can guarantee transparency by seeking tax advice from the very start to know which part of property use you can claim as use for business purposes. The best person to talk to about the process for claiming home office costs is your accountant or bookkeeper.

Startup Expenses

A lot of startup companies, especially in the chaos of getting the business up and running, fail to keep a record of all spending incurred beforehand. So, immediately after making sales, don’t forget to track those startup costs as deductions. It is important to keep accurate and complete records and receipts from the very beginning.


Originally, deducting desktop software costs had been simple, as it is basically a complete deduction in the financial year the software was bought and set up. However, that is now a bit complicated due to the rising number of cloud-based solutions, automation tools, marketing platforms, and tracking systems. For the cost of cloud-based solutions, you are entitled to claim the monthly costs that fall within the applicable financial year. You can claim whatever amount, but you need to show documents on your ongoing payment plan.

See a qualified tax advisor, accountant or bookkeeper for tax enquiries specifically concerning your industry or business situation. Each business is unique, so each one is entitled to claim different tax deductions. PJS Accountants can help you organise your tax affairs. We work with large companies, SMEs, family businesses and individuals. For enquiries, contact PJS Accountants.