I’m writing this newsletter on my five-year old laptop. Had I been a sensible freelancer, I would have gotten a new one a while ago.
Not because I wanted or needed a new one though.
But because I have fully written the old one off and getting a new one would allow me to deduct the cost of that laptop from my taxes as a business expense, allowing me to lower the amount of taxes I will pay on the money I make this year.
Although I spent the last four years writing about taxes for a major legal publication, this has never made any sense to me.
As a creative freelancer, I don’t have a lot of expenses. I invested in a good desktop computer, laptop, camera and desk chair early on, and my biggest recurring costs today are the monthly fee I pay to work out of a co-working space, the various software programmes I use, and my print subscriptions to magazines and newspapers. When you add all that up, you don’t get a very impressive amount.
Deductibility rules encourage me to spend money on shiny new things so I can substantially lower my tax bill. It’s why a couple of years ago, a friend of mine who runs his own business insisted that I should upgrade to a new and bigger car to lower my taxes. (Granted, the business he runs is … a garage so maybe not super impartial advice). Why give €11,000 to the tax man when you could keep that money and get a new car for it instead, he asked? (I imagine that’s what a new car costs but I may be way off the mark 🤷🏽♀️)
Well, because I don’t want to buy things that are nice to have but that I don’t need just to lower my taxes. That’s not the kind of freelancer or consumer I am.
In fact, I think there’s a jarring disconnect between traditional tax deduction rules and our growing awareness as a society of the human and environmental damage that buying things we don’t need does. It’s not that I don’t agree that freelancers and companies should be allowed to write off the expenses they make to grow their business. But I think those rules should be broadened so they no longer apply to things you can buy in a store only.
Because the intangible investments I make in the long-term prosperity and health of my freelancing business aren’t deductible. Not checking my emails in the evenings and on weekends, avoiding working on weekends, regularly taking the day off, exercising several times a week, saying no to assignments when I know I have too much on my plate already, turning to others for emotional support when I run into difficulties … all these things grow and protect my freelance business more than any MacBook could.
Companies can write off the costs associated with encouraging employees to stay physically and emotionally healthy. Why can’t I?
With burnout figures on the rise as a result of the pandemic, this is all the more important. Particularly as every freelancer is their own health and safety adviser, i.e. the only person who can ensure you don’t develop a severe burnout by maintaining healthy habits is you.
What are some things you wish you could deduct as a business expense that help you stay sane? Let us know by emailing us at freelancerthefriendly@gmail.com
Speak soon,
Linda
What I’m listening to, reading, watching this week:
- Burnout is not a term to be casually used. It’s a serious condition and feeling “burnt out” is not the same thing as having severe burnout symptoms. This assessment tool can help you establish whether you have burnout symptoms. It’s a semi-long questionnaire and the questionnaire guidance is even longer, but it was developed by actual, serious scientists. 👩🏽🏫
- Listening to the Twenty Twenty pop culture podcast has been an absolute delight. Particularly recommend the episodes on Craig David, Destiny’s Child, Gilmore Girls, Coyote Ugly and Zadie Smith.
This newsletter was written by Linda A. Thompson, a Belgian journalist, content writer and translator. In two weeks, you’ll hear from Selma Franssen, a Dutch author, journalist and presenter living in Brussels.