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Tips for paying less tax for self-employed

Updated: Feb 7

 Büşra Yaren Güney is the author of the article titled Tips for paying less tax while being self-employed

Publication date: 25.08.2023

It's nice to be the boss of our own business. But when it comes to paying taxes, the situation may lose its beauty a little. Here are some tips for paying less taxes while being self-employed.

What is freedom of trade?

Freedom of trade is a symbol of the existence of everyone's right to establish and operate their own business. However, this happens provided that they do not violate applicable laws. The possibility of free entrepreneurial activity provided by the freedom of trade is the main feature that shapes the free market economy.

Make a list of needs!

What needs can you list when becoming self-employed? The answer will vary depending on your business. Most list financial costs such as travel, office equipment and insurance or bank charges. Larger businesses will have more expenses, such as staffing, workplace and marketing costs. In other words, this means they can request a wider list of expenses. The more employees and equipment, the more spending, and this is one of the biggest contributing factors that will help with taxation.

less tax for self employed

Individual expenses

Individual expenditures are also sometimes helpful in reducing taxes. But there are also special rules about these expenses. For example, with travel, you can charge for fuel, parking and public transport. However, you cannot claim the costs of trips Decoupled between your home and work.

In addition, expenses should be for 'purely' business purposes. If any costs are for a mixture of personal and commercial use, you will only deduct the amount that is proportional to the commercial use. This may seem easy for some expenses, but others are a little more vague. For example, these could be expenses incurred when working from home. What’s more, when it comes to heating, you need to calculate the approximate amount of time you spend working.

Loopholes in the law can help you to pay less tax for self-employed!

It is a crime to go outside the law. But what if we take advantage of loopholes in the law, is it still a crime? No, it stops being a crime now. The taxes we are talking about here are avoided within the legal limits. While tax evasion is an illegal behavior, tax avoidance refers to the result of taking advantage of loopholes in the law within the framework of the law.

Reasons such as the fact that the tax legislation is very detailed and various efforts to pay less taxes lead taxpayers to tax evasion. In addition, reasons such as the fact that indirect taxes are more than direct taxes, the ineffectiveness of tax auditing and efforts to pay less taxes lead to tax evasion.

less tax for self employed

Some of the examples of data trafficking may be as follows:

Creating a fake account by deceiving the kept books, fake registrations and deleting book entries.

How can we legally show our tax less? Here are a few tips!

Some Tips

● You can show the payments you have paid to your children as evidence.The care of your family is your responsibility. You should do this in any case. Why should it be a problem for you to handle your responsibilities in the same framework? You can do both at the same time. Actually, you can also deduct from taxation at the same time while taking care of your children.

● Taking a home or office break will also be quite helpful. Every business activity needs a workspace.

● Make the most of health insurance deductibles. The health insurance you have for your spouse and dependents will also help you when paying taxes.

● It is useful to keep the shape of your company simple.

● Keep track of all business mileage. Your road expenses play an important role in gasoline taxation.

Increase your self-employed pension contributions and explore ways to do so.

● Make a claim for higher pension tax relief rates.


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