EXPENSE DEDUCTIONS FOR INDEPENDENT CONTRACTORS

Learn precisely how to allocate your mixed-use expenses like internet and utilities to maximize your tax deductions compliantly.

ALLOWABLE DEDUCTIONS

Expense Type	Description	Example
Home Office	Portion of rent, utilities, repairs related to your home office space. Calculate based on the percentage of your home used for business.	If your home office takes up 20% of your home, you can deduct 20% of rent and utilities.
Internet & Utilities	Partial allocation of internet, phone, and utility bills based on business usage.	If you use internet 70% for business, you can deduct 70% of your internet bill.
Business Travel	Accommodation, meals, and transport for business-related travel.	Flight to meet a client, hotel stay, and 50% of meal costs during the trip.
Professional Services	Fees paid to accountants, lawyers, consultants for business purposes.	Accountant fees for preparing business financial statements.
Equipment & Supplies	Computer equipment, software, office supplies used for business.	New laptop (100% deductible if used exclusively for business).

DETAILED EXAMPLE

Home Office Calculation Example:

Total home area: 1,000 sq ft
Home office area: 150 sq ft
Percentage: 15%
Monthly rent: LKR 50,000
Monthly utilities: LKR 10,000
Deductible amount: 15% × (50,000 + 10,000) = LKR 9,000 per month

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CALCULATE YOUR TAX NOW!

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