# Tax deductions on extra income



## daymoh (16 Jun 2009)

Hi Guys,

I'm getting around to declaring some extra income I earn from a website I run. My site offers reviews and articles on various travel destinations/hotels etc.. This is something that I run aside from my day job. I hire a travel writer to write most of the articles for me. The only source of income my site gets is from advertising.

Can I confirm that the following could be tax deductible?:

1. Payments to the travel writer
2. Hotel bills/restaurant bills/travel expenses for places I review 

Will I send receipts in as part of the income declaration?


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## Ants09 (16 Jun 2009)

Hi daymoh
yes both kinds of expenses are tax deductible and you do not need to send in receipts as part of your income declaration but you need to keep them incase the revenue looks to vouch them


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## Guest116 (16 Jun 2009)

You need to talk to an accountant. There are probably lots of other things you can claim expenses against (you probably already know this?), such as cost of website registration, mileage, phone costs, etc


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## daymoh (17 Jun 2009)

Thanks for the replies.. I was already aware of internet costs and website registration but wasn't sure about the other costs.

hmm... I've always been bad at keeping receipts. Will credit card bills be acceptable as proof of payments in situations where I don't have receipts?


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## daymoh (14 Oct 2009)

Just starting to do my returns now for the first time and have one last qn 

I bought a car 4 years ago which is used 50% for website purposes. As well as claiming petrol, tax and insurance as expenses can I also write off 10% of the purchase price as an expense? (IE. The car is depreciating @ 20% per annum and I use the car 50% of the time for website related driving = 10%)

Many thanks


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## JJ1982 (14 Oct 2009)

Unfortunately depreciaton is not an allowable expense for tax purposes. You can claim a wear and tear, capital allowance for this however.


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## Josvill2010 (14 Oct 2009)

Wear and Tear rate is 12.5% (8 Years). So 50% Biz Usage that would be allowed 6.25% I would think


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## mathepac (14 Oct 2009)

daymoh said:


> ... I bought a car 4 years ago which is used 50% for website purposes. As well as claiming petrol, tax and insurance as expenses can I also write off 10% of the purchase price as an expense? ...


You can claim a percentage of actual motoring costs incurred during the year, based on the split between business and personal use (tax, fuel, insurance, maintenance, tyres) *BUT* you will need to keep detailed records (actual invoices and a travel diary) as support documentation. Depreciation and wear-and-tear are not actual costs, they are purely notional.


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## daymoh (15 Oct 2009)

Many thanks for your help.


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## daymoh (27 Oct 2009)

Hi Guys,

With regard the above, I would just want to confirm the following:

1. I should fill out form 12 section 10 (Income from trade or profession) with a total income for 2008 and total expenses for 2008.
2. I don't need to fill out any other form
3. I don't need to submit any proof/accounts

Thanks again!


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## daymoh (15 Apr 2010)

Just as a follow-up.. I've lost so many receipts.

If I was to get a credit card solely for expenses relating to this venture, would the credit card statement be sufficient for the tax man as proof of expense?

Also, I will be moving houses shortly and moving into a friends place. I plan on renting 2 rooms. One for myelf and the second as an office.. Since the office will be used as a deductible expense will this have any impact on my friends tax liability?


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## Towger (15 Apr 2010)

daymoh said:


> Since the office will be used as a deductible expense will this have any impact on my friends tax liability?


 
This has all sorts if problems: CGT, Rates, Insurance, Planning permission etc etc.


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## daymoh (15 Apr 2010)

Towger said:


> This has all sorts if problems: CGT, Rates, Insurance, Planning permission etc etc.


 
Even though I don't have a registered company? This is something I'm just doing in my spare time to make a little extra money..


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## mathepac (15 Apr 2010)

daymoh said:


> Even though I don't have a registered company? ...


Ltd Company, sole trader, part-time, full-time - it makes no difference; commercial activities running from a residential property attract the issues high-lighted above and have been discussed at length in other threads.


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## daymoh (15 Apr 2010)

All I do is write a blog. I get a small bit of income from an online ad program. 

Are you telling me that if I keep working on my blog  my friend/I must pay for "CGT, Rates, Insurance" and must get Planning permission..

Frankly, I'm shocked... ???!!


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