Remember when doing your tax used to be a real hassle? Thankfully it’s becoming easier every year. And there are some pretty good tax deductions available for tradies, even when you’re working for wages. You just need to keep good records.
Keeping all your documents and receipts stored somewhere sensible is the key to making it a stress free event. So here are the top 10 tips from Cube Consulting:
- If you need to get yourself and your tools of trade from worksite to worksite, your motor vehicle expenses are deductible. Keep a log book, or get an app like Logit to take care of all your vehicle record keeping hassles.
- Any tools under $300 are immediately deductible in the year they are purchased. But you must have receipts. Make sure the guys at your tool shop email your receipt to you, to save the hassle of saving paper receipts.
- Save your receipts as a picture on your phone, or Google drive, or in Dropbox. Say goodbye to paper receipts forever.
- If you’re making plenty of work related phone calls as most of us do, your phone is another expense you can claim. Get your phone company to email you the bill.
- If you work outdoors, the cost of sun-safe protective eyewear is claimable, as is sunblock and a hat.
- The cost of your uniform or protective clothing is also deductible, as are the laundry costs. Once again, just keep a good record.
- Any safety equipment like boots, hearing protection or gloves, these are all legitimate expenses you can claim.
- If you’re running a tradie business turning over less than $2 million per year, you can claim 100% of the cost of equipment that is vital to your activities, with a value of up to $20,000. You can claim this for as many items as you like until June 2017.
- The cost of last year’s lodgment can be claimed in this year’s tax.
- And lastly, download the ATO myDeductions app to help keep your records straight. This is about as straightforward as you’d want, and super convenient.
So remember, get yourself well organised in advance and take the hassle out of tax-time. It’s really not that hard.
For further information contact us on 02 8011 4855 or 1300 665 922 or by email firstname.lastname@example.org.