- Jan 12, 2014
From my (admitedly limited) time working with people who were self-employed, I remember they were able to file some personal expense as business expanses, so they'd avoid to pay taxes on it (well, they wouldn't pay income taxes on the money they would have used for those expenses); I remember examples like paying car maintenance, personal office space renovation, meals, suits for those working in finance, computer equipment... But then of course it was in France, so different fiscal regime and I guess your accountant would have told you about this
I presume that he/his accountant is already doing that. Here in Belgium I can deduct half of my energy (gaz/electricity/water) (half: because I'm working from home. If I had a separate office it'd be 100%), internet, all hardware/pc costs (even video games or paper magazines), office tools, software expenses, social cotisations and most importantly sub-contracting work. That works both for deducting tax income and VAT too (you get back 21% of those). All in all it's not too bad, but yeah, if you're working on software, you're basically creating value from little so you're heavily hit by the VAT.