There are several sorts of expenses that can be claimed during the end of year tax return. These include:
- The cost of an accountant or tax agent to file and complete tax returns.
- Cost of income protection insurance if the insurance payout would be taxable. Talk to your insurance provider about whether your income protection insurance is deductible. If you are planning to get income protection, then you should consider opting for a deductible one.
- Any commission you were charged on your income from interest and dividends (other than bank fees) can be claimed.
- If you have borrowed money to buy shares or to invest, any interest on it can be claimed as long as the investment will produce taxable income.
- If you paid interest due to late payment of tax to Inland Revenue, you will also be able to claim this, as long as it’s in the income year you paid it.
You should remember that for these claims, you will be required to provide proof. This could include invoices from accountants or receipts for income protection insurance. Remember that if you receive an automatic income tax assessment, you should contact Inland Revenue to add these expenses.