😎 My fellow Copywriters - you can save (and make) some serious money!
Let the taxman pay for your copywriting business (or at least a chunk of it!).
Welcome, welcome, welcome!
Hi, it’s Les, and welcome to my Copy Hero newsletter!
I won’t drone on about myself, this is me in one short sentence:
10+ years successful, full-time copywriter - now specialize in Tech and Cybersecurity copywriting - worked for Fortune 100 companies as well as one-man bands - loads of knowledge to pass on - just copy my success!
Moving right along…nothing to see here
So, in this edition, I want to look at something very few copywriters think about when just starting out, and that’s how to make the most of your tax position.
Think of it as what you can legally claim back from the taxman - and why wouldn’t you claim every last cent you can?
This is important stuff that can have the taxman paying for at least part of your copywriting business :)
Plus:
Les’s links - genuinely interesting/useful links
$150/hr copywriting? Sure, why not?
Resource of the week - you’ll love this!
A funny - we might as well have a laugh, right…
How to make the most of your tax position as a Copywriter
Many online Copywriters are unaware of available tax deductions and are missing out big time.
While I don’t provide tax advice, this article will give you some idea of the kind of tax deductions you can expect as a self-employed online copywriter.
Always check your tax position with a suitably qualified local tax practitioner or accountant.
Remember: it’s a good idea to keep all invoices and receipts from day 1, you’ll need them later.
Tax deductions for online copywriters
Most online Copywriters trade as self-employed or sole traders for tax purposes, and their taxable income would normally comprise:
Gross Income – Business Expenses = TAXABLE INCOME (i.e. profit before tax).
Your tax situation depends on where you live and work in the world, and your local tax regulations. The following should be regarded as a general overview of some of the deductions that may typically be available.
What is a Business Expense?
As a general rule, the tax definition of a business expense is a business cost that has been incurred solely and exclusively in your business to earn your income, excluding capital expenditure (although depreciation of such assets is normally allowed as an expense).
However, as you’ll discover below, some expenses have to be apportioned between business and personal use (e.g. smartphone/Internet).
Potential Business Expenses
Business Accommodation:
(a) Dedicated business premises
If you rent specific accommodation for your business, the following can be claimed:
Rent
Rates
Water
Electricity
Cleaning
Security
General Maintenance
Insurance
(b) Working from home
Usually based on space used exclusively for your office i.e. say 15 sq. meters of a total of 150 sq. meters = 10% of total running costs. This means you could likely claim 10% of:
Water
Electricity
Cleaning
Security
General Maintenance
Insurance
Mortgage interest (not mortgage repayments)
Office Supplies
Printing and Stationery
Hardware and Software
Personal laptop computer
Smartphone
Tablet
Apportion between business and personal use and claim allowances on the purchase of hardware over locally designated tax periods.
Medical Aid/Healthcare Insurance Contributions
Can be claimed for.
Insurance Premiums
Public liability
Loss of earnings
Office contents etc.
Travel Expenses
If you have to travel to a client, traveling, accommodation, and subsistence are generally allowed, but rarely entertaining.
Motor Expenses
The rules regarding the deduction of the costs of running a motor car vary considerably worldwide.
However, as a general rule, assume it will be necessary to keep a logbook detailing your business and personal mileage and the total running costs e.g. petrol, insurance, repairs. Costs can be apportioned appropriately.
Advertising and Marketing
Business cards, brochures, sponsorships, and press advertising
Internet, Cellphone and Phone Bills
Apportion between business and personal use.
Accounting, Legal and Professional Fees
Claim for all expenditure on professional fees.
Website Costs
The cost of a business website - includes domain fees, design, building costs, and maintenance.
Bank Charges & Interest on Business Bank Accounts
To avoid hassles with your local tax authority, it’s always advisable to open a separate business bank account for your business activities, especially in respect of your fees and direct business expenses.
Cost of Employees/Contract Labor
If you employ any staff or hire any other independent contractors or freelancers, all related costs are included in your business expenses.
End Words
I hope you found this article on tax deductions for online Copywriters informative, and it helps you claim what is rightfully yours!
Remember, start keeping good records of your income and expenses from day 1 – you’ll be glad you did.
The original research for this piece was contributed by my dear friend Peter Killick, CA (Chartered Accountant), and this inaugural newsletter is in his memory.
$150/hr? Yup, it’s highly possible
Check out this video I made for my YouTube channel.
Les’s links
There’s so much information available on copywriting, some of it great but much of it rubbish that can delay your progress or even halt it altogether.
Each month I’ll link you out to some genuinely useful or interesting content that’s the kind of material I read, and I think might interest you guys as well.
Data backed copywriting
This article looks at 8 copywriting tips that are backed by science to help you craft the perfect blog post or copy:
The best of the best
Here you’ll discover some examples of the very best copywriting out there, world-class in fact:
Guest posting best practices
If you’ve considered guest posting as part of your content strategy, here are some best practices that’ll help you get your head around the technique:
Resource of the week
We all know (or at least should know) how important it is to write amazing headlines that grab the attention of the reader right off the bat and encourage them to read further.
Without an attention-grabbing headline, your piece is most likely dead in the water before you even get started.
But, how do you know if your headlines are good enough?
Don’t fear, here’s a free tool from the Advanced Marketing Institute you’ll love.
Their “Emotional Marketing Value Headline Analyzer” will analyze your headline to determine the Emotional Marketing Value (EMV) score based on proprietary analysis technology developed by Advanced Marketing Institute.
This is an amazing free resource, so enjoy!
Funnies
I hope you enjoyed this edition - look out for more good stuff coming to your inbox soon!