{"id":70536,"date":"2023-02-09T12:41:46","date_gmt":"2023-02-09T10:41:46","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=70536"},"modified":"2026-01-29T14:16:24","modified_gmt":"2026-01-29T12:16:24","slug":"what-you-can-and-cant-claim-a-tax-guide-for-the-self-employed","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/what-you-can-and-cant-claim-a-tax-guide-for-the-self-employed\/","title":{"rendered":"What you can and can\u2019t claim\u2013a tax guide for the self-employed"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat you can and can\u2019t claim\u2013a tax guide for the self-employed\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-02-09T12:41:46+02:00\">Feb 9, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What you can and can\u2019t claim\u2013a tax guide for the self-employed\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/what-you-can-and-cant-claim-a-tax-guide-for-the-self-employed\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/joanne\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/09\/Joanne-350x350.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Joanne Carew<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>The South African Revenue Service (<a href=\"https:\/\/businesstech.co.za\/news\/finance\/658807\/sars-is-coming-after-these-taxpayers-with-full-force-in-2023\/\">SARS<\/a>) has promised to get even tougher on taxpayers with a zero-tolerance approach to non-compliance. This is why it\u2019s so important to educate yourself about all the tax-deductible business expenses you are entitled to claim as a small business owner or freelancer.<\/p>\n\n\n\n<p>Our article answers the following questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What deductible business expenses can I claim as someone who is self-employed?<\/li>\n\n\n\n<li>Are there any particulars about different expenses that I should know?<\/li>\n\n\n\n<li>What records do I need to keep?<\/li>\n\n\n\n<li>Is there an easier way to keep track of everything?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-deductible-business-expenses-can-i-claim-as-someone-who-is-self-employed\">What deductible business expenses can I claim as someone who is self-employed?<\/h2>\n\n\n\n<p>There\u2019s no doubt that times are tough. Reducing your tax bill by claiming all allowable expenses is one way small business owners and freelancers can cut costs.<\/p>\n\n\n\n<p>All businesses will have some essential running costs\u2013from office supplies, rent, and utilities to training, entertainment, and stock. Tax-deductible business expenses are any expenses you incur in running your business and can be deducted from your overall taxable income to reduce your tax bill.<\/p>\n\n\n\n<p>So, what can you claim?<\/p>\n\n\n\n<p><strong>1. Day-to-day business expenses<\/strong><\/p>\n\n\n\n<p>Day-to-day expenses include any costs incurred as part of running your business. Things like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business premises-related expenses:<\/strong> Rent\/interest expenses, water, electricity, heating, telephone, rates\/taxes, and internet. Remember that if you run your business from home, some of these expenses must be apportioned to claim a deduction for costs since only a portion of the premise is used for business activities.<\/li>\n\n\n\n<li><strong>Office equipment:<\/strong> Including stationery, furniture, cleaning costs, and computer software<\/li>\n\n\n\n<li><strong>Staff:<\/strong> Salaries and any admin costs related to the people you employ.<\/li>\n\n\n\n<li><strong>Travel and transport: <\/strong>Petrol, vehicle maintenance, and flights and accommodation for work-related travel<\/li>\n\n\n\n<li><strong>Clothing:<\/strong> This only applies to clothing you require your employees to wear and needs to be distinguishable from regular clothing, such as uniforms or costumes, in the case of an actor or stage performer.<\/li>\n\n\n\n<li><strong>Stock:<\/strong> Procurement, storage, and transport<\/li>\n\n\n\n<li><strong>Financial costs:<\/strong> Fees related to accounting, legal, and insurance<\/li>\n\n\n\n<li><strong>Promotion costs:<\/strong> Marketing, advertising, and the costs associated with running your business\u2019 website<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-f8b600a4-c688-4a26-805f-613d39fb14f4 \">Download your free copy of the Quick Guide to Payroll Compliance 2023\/24 <\/a><\/div>\n<\/div>\n\n\n\n<p><strong>2. Capital expenses<\/strong><\/p>\n\n\n\n<p>Unlike day-to-day expenses, capital expenses are once-off purchases of major physical goods or services that your business will use in the long term. They are usually more costly and include things like large equipment and machinery (such as tools and furniture), business vehicles, renovation costs for your office, and hardware (such as tech equipment, laptops, and phones).<\/p>\n\n\n\n<p><strong>3. Education expenses<\/strong><\/p>\n\n\n\n<p>Any training or further education you invest in to maintain or boost the skills you need to run your business is a business expense. This includes training and education for the people you employ.<\/p>\n\n\n\n<p><strong>4. Entertainment expenses<\/strong><\/p>\n\n\n\n<p>If you\u2019re having a coffee with a potential client or you\u2019ve organised entertainment and catering for a business meeting, these expenses are tax-deductible come year-end. But you must prove to SARS that the expense is business-related.<\/p>\n\n\n\n<p><strong>5. Other expenses<\/strong><\/p>\n\n\n\n<p>On top of the expenses listed above, you can claim a few additional items in certain circumstances. Such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Start-up expenses:<\/strong> Any costs&nbsp;incurred to get your business up and running before your first year of trade can be counted as an expense.<\/li>\n\n\n\n<li><strong>Assessed losses:<\/strong> Losses that have been made over previous years are tax-deductible.<\/li>\n\n\n\n<li><strong>Charitable donations<\/strong>: Charity donations can be claimed against your taxable income, provided the organisation has a Public Benefit Organisation (PBO) number and can issue you a tax certificate.<\/li>\n\n\n\n<li><strong>Retirement annuities<\/strong>: You are exempt from tax on contributions made while saving&nbsp;for retirement, up to a certain amount.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-f8b600a4-c688-4a26-805f-613d39fb14f4 \">Download your free copy of the Quick Guide to Payroll Compliance 2023\/24 <\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-are-there-any-particulars-about-different-expenses-that-i-should-know-about\">Are there any particulars about different expenses that I should know about?<\/h2>\n\n\n\n<p>Unsurprisingly, there are some specific rules and requirements around what does and does not constitute a business expense, so you need to be mindful of what you can claim within different categories.<\/p>\n\n\n\n<p>For example, it\u2019s important to understand what constitutes a <a href=\"https:\/\/www.sage.com\/en-za\/blog\/tax-year-end-tip-how-to-claim-for-home-office-expenses\/\">home office<\/a>. If you\u2019re working from the couch or dining room table, you won\u2019t be able to claim office space as part of your deductible expenses.<\/p>\n\n\n\n<p>This is because a home office must be<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a separate room in the house or on the property,<\/li>\n\n\n\n<li>it must be used exclusively for trade,<\/li>\n\n\n\n<li>it has to be used regularly, and<\/li>\n\n\n\n<li>it should be appropriately kitted out to enable your business to function.<\/li>\n<\/ul>\n\n\n\n<p>In the case of a dining room table or couch, this most certainly is not the case.<\/p>\n\n\n\n<p>Similarly, it\u2019s important to understand that some assets (those that cost less than R7000) can be claimed in full, but assets that cost more than R7,000 must be <a href=\"https:\/\/www.sage.com\/en-za\/blog\/asset-depreciation-how-to-claim-tax-back\/\">written off over time<\/a>.<\/p>\n\n\n\n<p>So before you buy the most expensive office equipment thinking you can claim the whole amount, remember that if the item exceeds a certain amount, only the value the asset loses each year through wear-and-tear is tax-deductible.<\/p>\n\n\n\n<p>By understanding these technicalities, you can guarantee that you don\u2019t miscalculate your expenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-records-do-i-need-to-keep\">What records do I need to keep?<\/h2>\n\n\n\n<p>Knowing what you can claim means nothing if you aren\u2019t strict about record keeping because you might need to show SARS that your claims are valid. &nbsp;<\/p>\n\n\n\n<p>Records that you should hold on to include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Entertainment expenses:<\/strong> When it comes to entertainment, you must document the particulars about the cost so that SARS can verify that the expenses are genuinely business-related. If you have a meeting with a client, make sure to note the date, who you entertained, the purpose of that entertainment, the location and cost.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Depreciation schedule:<\/strong> Remember those assets that cost more than R7,000? If you\u2019re <a href=\"https:\/\/www.sage.com\/en-za\/blog\/asset-depreciation-how-to-claim-tax-back\/\">claiming depreciation<\/a>, you have to be able to show how you calculated the amounts deducted from your taxable income, and you will also need to produce an invoice proving the purchase of the asset in question.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Travel claims:<\/strong> Any travel-related expenses\u2013petrol, toll fees, vehicle repairs, and insurance\u2013must be supported by a logbook that details the odometer reading at the start and end of the financial year. To differentiate business mileage from personal mileage, you must provide the details around each trip taken (date, reason for travel, distance covered) so that you can separate business and private activities.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Personal vs business:<\/strong> Speaking of which, you will likely have some overlapping personal and business expenses. It\u2019s important to keep a clear record of everything. With an accurate understanding of which costs are business-related and which are personal, you claim the correct amount when tax season rolls around.<\/li>\n<\/ul>\n\n\n\n<p>With this in mind, it\u2019s a good idea to open a business bank account to keep all your business income and expenses separate from your personal ones. And remember that you\u2019ll need to keep these records for at least five years after the relevant tax year.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-f8b600a4-c688-4a26-805f-613d39fb14f4 \">Download your free copy of the Quick Guide to Payroll Compliance 2023\/24 <\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-there-an-easier-way-to-keep-track-of-everything\">Is there an easier way to keep track of everything?<\/h2>\n\n\n\n<p>If SARS audits you&nbsp;and finds that you claimed non-deductible expenses, you\u2019ll have to pay additional taxes and a penalty. To do this, you\u2019ll have to stay on top of your finances.<\/p>\n\n\n\n<p>If capturing data on multiple Excel spreadsheets is proving too time-consuming, consider using <a href=\"https:\/\/www.sage.com\/en-za\/sage-business-cloud\/accounting\/\">cloud-based accounting software,<\/a> as this will save time and is more accurate than a spreadsheet populated manually. With the right software, you can import expenses and receipts and capture physical receipts digitally so that all the supporting documentation you need to verify your costs is stored in one place.<\/p>\n\n\n\n<p>If you\u2019re still struggling to make sense of your expenses, get advice from a professional tax consultant or accountant.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">The quick guide to payroll compliance<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Get the latest expert advice on managing and maintaining payroll compliance and staying on top of tax and legislative changes.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-f5d00389-a6c9-4a21-9eb4-7330554da4d8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1283894303-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1283894303-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The South African Revenue Service (SARS) has promised to get even tougher on taxpayers with a zero-tolerance approach to non-compliance. This is why it\u2019s so important to educate yourself about all the tax-deductible business expenses you are entitled to claim as a small business owner or freelancer. Our article answers the following questions: What deductible [&hellip;]<\/p>\n","protected":false},"author":1287,"featured_media":69773,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[35,25],"tags":[321,186,213],"business_type":[2],"lilypad":[],"context":[],"industry":[],"persona":[15,16],"imagine_tag":[64,73,85,86],"coauthors":[446],"class_list":["post-70536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-money-matters","tag-compliance","tag-entrepreneurship","tag-tax","business_type-small-business"],"sage_meta":{"region":"en-za","author_name":"Joanne Carew","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1149029523.jpg","imagine_tags":{"64":"Cloud accounting","73":"Money Matters","85":"Small business","86":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1287"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=70536"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/69773"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=70536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=70536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=70536"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=70536"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=70536"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=70536"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=70536"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=70536"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=70536"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=70536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}