Subcontracting includes all services that you hire from external parties to support or expand your business activities. This can range from technical support provided by a consultant to tasks that you have specifically performed by a subcontractor. It is important that these services are directly related to your business activities and are resold to your customers.
Examples of subcontracting by profession
- Administrative expert: Hiring an accountant for specialised financial tasks.
- Garage mechanic: Calling in a specialist for complex repairs.
- Self-employed in construction: Renting an electrician or plumber to specifically perform work.
- Marketer: Collaborating with a graphic designer or copywriter.
- Animal carer: Hiring a trainer for animal behaviour training specifically.
- Event manager: Contracting a caterer or lighting technician.
- Financial expert: Hiring an IT consultant for financial software.
- Self-employed person in the hospitality industry: Hiring a guest chef for special events.
- Childcare: Hire an educational expert for workshops.
- Management consultant: Collaborate with an IT consultant for business transformations.
- Care worker and nurse: Hire a specialist for specifically medical treatments.
- Therapist: Contract other therapist for specialised treatments.
- Artist: Collaborate with a gallery for art exhibitions.
- Seller: Hire a marketing consultant for promotional campaigns.
- Driver: Collaborate with a logistics planner.
- Store operator: Hire a merchandiser for product displays.
- Estate agent: Collaborate with a property photographer.
- Nutrition specialist: Contract a nutritionist for specialised diets.
Subcontracting as a deductible professional expense
The costs for services provided by subcontractors and consultants can be considered professional expenses, which means you can deduct them 100% from your taxes.
Register the expenses in your accounting system: Record all subcontracting costs in your accounting system under the appropriate category. This makes it easier to deduct these costs on your tax return.
