Post #2404601
2026-03-27 15:04 UTC
Replies (2)
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@dneary@mastodon.ie 2026-03-27 17:13
@rrustema020@mastodon.nl @peterbrown@mastodon.scot @MrAndrewD@aus.social @notjustbikes@social.notjustbikes.com Businesses have costs, and those costs of doing business are deduced from gross revenue - taxes are paid on profits, not revenues. Business owners sometimes spend money from their profits on nice things that they don't strictly need, in order to reduce taxable profits, as long as they can claim the nice things as legitimate business expenses.
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@peterbrown@mastodon.scot 2026-03-27 20:05
@rrustema020@mastodon.nl @dneary@mastodon.ie @MrAndrewD@aus.social @notjustbikes@social.notjustbikes.com exactly so. Some expenses are allowable against tax; in other words to reduce your tax liability. Some expenses are not allowable, depending on the country. Here entertainment such as buying meals is not allowable against tax, although the business may regard buying lunch for a client as a legitimate business expense. In the same way, I suggest private transport be disallowed.