If you have a sole proprietorship, a medical practice that provides wound care for patients at home. There is only two employees. The owner (the nurse that does the wound care) and one person doing the financials and administration. The business is not registered, but the nurse has a practice number. How would you submit the tax return (as personal tax return/business?) and what deductions could you claim?
The business owner would need to declare the business's income and expenses in her own personal tax return within the section "Local, Business Trade and Professional Income". He/she would need to register as a provisional taxpayer too and pay tax twice a year on the business profits. Please read our blog on What is Provisional Tax? How and when?
All business related expense could be claimed e.g.. salary (finance and admin), medical supplies, stationery, telephone, surgery expenses
Remember to pro-rata expenses which relate to business and personal so as to only include the business portion as a deduction.
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