Have you already lodged your 2019 tax return? Has the refund slipped through your fingers? Do you wish the refund was just a little bit bigger? Were you hoping you (or your accountant) could perform a miracle when the return was prepared? With a little bit of planning, it’s possible that you can get a better outcome next year, but you need to start thinking about it now.
Depending on your business or occupation, you may be eligible to claim a number of deductions to help reduce the amount of tax you have to pay. The catch is that many of these cannot simply be determined after the year is over. Expenses such as motor vehicle running costs, internet and mobile phone usage, and working from home could all potentially be claimed if you can provide the correct evidence. However, the Australian Taxation Office (ATO) has strict guidelines and requirements for you to prove your deduction so you must make sure you’re prepared.
Having said that, the correct evidence doesn’t need to be difficult to obtain. All you may need is some receipts, your work diary, or a log book, and these can all be put together easily throughout the year. There are even free phone apps which will assist with this record keeping for you so you don’t have to keep a bag full of receipts! Once the year is over, your expenses can quickly be summarised ready for your tax return. The important thing to remember is it must be done throughout the year… so start now.
If you need advice on what you can claim, and what records you need to keep, please feel free to contact us.