10 tax deductions often overlooked by cafe and restaurant owners
Alright, let’s dive into some lesser-known tax deductions for cafe or restaurant owners that might surprise you and save you some cash.
Here are 10 things owners often overlook:
Staff Meals - If you provide meals to your employees on site during their shifts, those costs can be claimed as a deduction. Just make sure it’s reasonable and necessary for their work.
Cleaning Supplies - The cost of cleaning products and services to keep your cafe spick and span is deductible.
Licenses and Permits - Any fees for necessary licenses (like food handling permits or liquor licenses) can be claimed. Don’t forget to keep those receipts.
Decor and Ambiance - Expenses related to decor, including artwork and furniture that enhances the dining experience, can be deducted.
Employee Uniforms - If you require your staff to wear specific uniforms, the cost of those uniforms can be claimed. Just make sure they’re branded and not suitable for everyday wear.
Interest on Business Loans - If you’ve taken out a loan to finance your cafe or restaurant, the interest on that loan is deductible. Even if it’s secured on your home.
Bank Fees - Any fees associated with your business bank accounts or merchant services can be deducted.
Depreciation on Renovations - If you’ve made improvements to your premises (like a new kitchen or dining area), you can claim depreciation on those renovations over time.
Advertising Costs - Beyond traditional advertising, costs for social media promotions, influencer partnerships, or local sponsorships can be claimed.
Professional Development - If you invest in training or courses for yourself or your staff to improve skills (like food safety or customer service), those costs can be deducted.
Remember to keep meticulous records and consult with a tax professional to ensure you’re maximising your deductions. If you need more information or have other questions, just let me know paul@congdonfuzi.com.au