Tax deductions are a great way to claim back hard earned money at the End of Financial Year. Below is a list of a few common expenses that that tradies could be claiming back in their tax returns!
Transport
If you are using your vehicle as your main method of transport to get you from one job to another, then as long as you can prove that you are using your vehicle for business use, then you are able to claim back the costs associated with that vehicle.
Using one of two ways to track your mileage, you can to claim back the cost of running your vehicle for business use. Firstly, the log book method means that you will need to prove your odometer readings for a period of at least 12 consecutive weeks. By tracking the mileage you can claim the percentage of vehicle expenses allocated to business use, including running costs and depreciation. Alternatively, the cents per kilometre method allows you to claim $0.66 per km on up to 5,000 kilometres of business travel.
Tools and equipment
Tools and equipment that you purchase to help you run your business can be claimed and so can repairs and maintenance on the tools and equipment purchased.
Training courses, licences and certificates
If you’re undertaking any professional development or studying for any qualifications that relate to your trade, you are able to claim back the cost. The course must be to improve or maintain your skills in your profession in order to claim it as a tax deduction.
Uniform and Protective Clothing
If you purchase certain protective clothing or items for your work, such as hard hats, sunglasses or steel-capped boots, you can claim them as a deduction. This also applies to clothing needed to distinguish you from the public, like a uniform. You can also claim the cleaning and laundry costs of your uniforms.
Communications
Don’t forget about all of that time that you spend on the telephone and sending emails for business purposes as you’re also able to claim back the cost of work related phone and internet expenses.
Travel
Any expenses associated with travelling for work , such as accommodation, meals and transport costs e.g. taxi fares, tolls etc, can be claimed as long as you have your receipt.
Subscriptions
Union fees and subscriptions to professional associations that relate to your business are also claimable in your tax return.
Not sure if it’s claimable or not? Ensure you keep a copy of your invoices and receipts and if you’re not sure whether it is claimable or not, check with your bookkeeper!
If the thought of keeping track of your income and expenses is totally overwhelming, contact Flawless Figures on 0414 859 665 or email [email protected] so we can help you alleviate the stress at tax time.
