Hi, I’m a U.K. resident setting up to soon work as a sole trader in Australia. Can I offset all/some of the set-up costs (professional registration, visas, accountants etc) and any of the travel and removals costs from the U.K, against my sole trader earnings? How do I know what is deductible? Cheers
Apart from the setup costs mentioned in prior link then the costs you incur to move can not be claimed off future business income. Expenses incurred before income has been earned cannot be claimed as a deduction. These expenses assist you in getting to a point where you can earn assessable (business) income but can't be claimed as the business has not yet started operating. Once your business has started then expenses incurred in running the business are deductible. Moving and relocation expenses can never be tax deductible as they don't directly relate to the earning of assessable income. The link explains this - it is for employees but the rules are the same for individuals who have yet to start their business.
This link provides information on what setup costs are deductible
Most of the expenses you have mentioned are private (hence not deductible) (professional registration, visa, travel, removal costs). This outlines business deductions.
Expenditure on capital items (tools, equipment) before the business starts can be claimed through decline in value (depreciation) once the business has started operating.
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