Tax time is one of the most dreaded times of year for any business owner. Whether you’re a small hobby business or a mega million dollar corporation, we all have to meet the tax man at some point. But what if the tax man paid you for your time and effort?
Did you know that on average, Australian taxpayers could claim back hundreds or even thousands of dollars each year by investing more time in their tax returns? There are so many claimable components that you could incorporate in your tax return that could give you a tidy profit.
Here are our top five claimable’s for maximising your tax return this year:
Do you use your car for work purposes? Do you post parcels for work or collect orders? If so, you can claim those kilometres back. Regardless of how many kilometres you clock up over the course of a working year, you can claim Australian tax reductions that could make all the difference to your small business. If you use a car for work and travel more than 5000 km per year, you will need to keep a record of all your professional trips for a period of 3 months. This time frame will give the taxman ample evidence of your business routine. If you only carry out short journeys to and from your office, as long as you keep a diary of your appointments or work schedule, you can still claim the usage. In Australia, you can claim up to 63c per km, so it is well worth the effort.
Working From Home
Many of us who run a small business choose to work from home to have a more flexible work life balance. If you have a home office, even if it’s in a spare room of your house, you can claim a tax refund of 34c per hour. Now, this may not sound like a fortune and as far as hourly rates go it isn’t. But if you consider how many hours you work as a self-employed business owner in your home office, those cents will soon turn into dollars over a 12 month period. Keep an eye on your time as you will need to provide the hours you have worked on your business. You could try using a time management tool like Work Log App to record how many hours you spend working from home. It could also help you to be more efficient with your time in the long run!
Dress For Success
Having the right tools for the job is so important. Did you know that if you are required to wear a uniform to work then you can claim back the costs of keeping your work clothes spic and span? Whether you’re a beautician, veterinary assistant or a traffic cop, if you wear a uniform to work you can claim up to $150 per year without having to provide a receipt. This factors in drycleaning and specific laundering a uniform may require.
Are you in the building trade? Did you know, if you carry more than 20kg of tools to and from your place of work then you can claim back your commute to the building site on your tax return. There’s a nice little secret claimable right there!
Professional Fees & Equipment
Aside your natural ability to do your job well, your investment in your work equipment is key to your success. If you use a laptop, mobile phone, printer, scanner or fax for work purposes you can claim for depreciation on these items on your end of year tax return. Don’t forget to add your fees for Union Membership, Accountancy Fees (including preparation of your tax forms), business website membership or other registration fees related to your work – they’re all tax deductible.
With more and more Australian taxpayers generating a primary or secondary income through investment properties, it’s important to consider the implications this may have on your end of year return. A well planned tax return could even leave you with far more of your rental income in your own pocket than you thought possible! For example, did you know that you can claim back the costs associated with advertising your rental property? Other easy claimable’s to maximise your tax return on a rental property include, property maintenance such as lawn mowing, cleaning, pest control, even gutter cleaning. You can also claim back administrative costs from letters to phone calls to ad placements. Don’t forget to include the interest on finance, agency fees and utility bills as well. It all adds up.
Think of your next tax appointment as paid time and make it work for you. You never know, it could be the most lucrative hourly rate you will ever get!
Contact Nicole at firstname.lastname@example.org to discuss your tax return today.