Taxation brings many professionals on their own head. However, it is an obligation that you cannot avoid. When it comes to making VAT and personal income tax returns, there are certain deductible expenses for the self-employedAre you clear what they are?

 

It is vital that you know them, since, if not, you can incur penalties and fines that can be a real problem for your business. From Capellas we have compiled for you the main expenses that a freelancer can deduct, do we discover them?

 

3 criteria to identify deductible expenses for a freelancer

 

From the computer you use to issue your clients' invoices to a payment training that you have attended, they may be expenses related to your business, but not all of them meet the necessary criteria to be deductible.

 

For an expense to be deductible:

 

  • Must always be rrelated to the professional activity of the self-employed And, as such, you must be able to demonstrate it.

 

  • You need a document that justifies it before the Administration (Usually an invoice or ticket with the corresponding data such as name and surname, company name, tax address or NIF).

 

  • Will have to be registered in your accounting books.

 

What can a self-employed person deduct?

 

Now that you are clear about how an expense should be so that you can deduct it in income tax and VAT returns, we will identify the most common.

 

  • Personal expenses: salaries and salaries that you pay your workers. Allowances, extra payments, allowances, travel expenses are also contemplated with the current limit of 26,67 euros per day without an overnight stay and 53,34 euros with an overnight stay in national territory. These limits are extended in case of going abroad.

 

  • Operating consumption: Goods (raw materials, packaging, fuels ...) that you buy from a third party and that are intended to earn income from your business.

 

  • Other personnel expenses: Gifts (in some cases), pension plans, accident insurance, training (including training for the self-employed both in public and private institutions, study material, specialized press in your sector ...).

 

  • Supplies: Electricity, telephone, Internet, water ... This type of expenses necessary to carry out your project can also be deducted whether you develop your work from facilities or offices dedicated to the business or if you telework from your home according to the Law on Urgent Self-Employment Reforms. BEWARE if you telecommute, the entire amount may not be deductible!

 

  • Marketing: All those investments destined to promote and advertise the business both digitally and physically count as deductible expenses (website, business cards, radio advertisement, digital advertising…). You can also deduct expenses associated with merchandising.

 

  • Self-employed contribution to Social Security and employee contributions in case you have them.

 

  • Financial expenses: Bank commissions associated with accounts or business cards, as well as interest on loans that have been earmarked for professional activity.

 

  • Leases and royalties: Rentals of both movable and immovable property (offices, premises ...), patent payments, financial leases (lease), technical assistance…

 

  • Taxes: The IAE, non-state rates (garbage can, for example) or the IBI are also impuestos

 

  • Reparations and conservation: The cost generated from the maintenance and replacement of material assets of the business are also deductible expenses as long as they do not derive from improvements or extensions.

 

 

These are the main deductible expenses for freelancers. If you develop your professional work on your own and your quarterly income tax returns (form 131) and VAT (form 303) are a real headache, from Capellas we help you.