Tradies, if you are looking to give your tax refund a boost this year but haven’t managed to keep all your receipts, don’t worry. Whilst claiming deductions without receipts should be avoided, there certainly are business expenses you are entitled to.
No receipt – $300 value claim
According to the ATO, if you do not have a receipt for purchased work-related items, you are eligible to claim up to a maximum value of $300. This covers expenses for:
Protective items – Industry related clothing including high vis, steel-capped boots, gloves, hard hats and safety goggles.
Tools and equipment – Purchase, hire and associated maintenance costs. As a rule of thumb, if the value of tools is less than $300, it can be claimed as an immediate tax deduction.
Transportation – All travel between worksites including costs associated with fuel, tolls and servicing can be claimed. However, this is where a logbook becomes a necessity. There are plenty of mobile apps to help you keep track of your kilometres travelled. Without receipts, a cents per kilometre method is used to calculate deductions. We can work this out for you so your tax return is submitted correctly! This includes parking costs too whilst on the job. Beware, parking fines are yours to own.
Laundry – Without a receipt, the ATO permits claims up to $1 per load, or $0.50 if work related items are washed with personal clothing. Again, it pays to keep a logbook to keep track.
Computer and mobile – If you use your phone for work related calls, receipt capture and logbook recording, you can claim a percentage of your bills. This includes home office running costs associated with invoicing and business management.
Training and subscriptions – Keep a note of all licences, skill upgrades and trade subscriptions you have that are associated to your role.
Stay ATO compliant
Typically, to claim a work-related deduction you must have spent the money yourself (without reimbursement), it must be directly related to the earning of income, and you must have a record to prove it. Luckily, there are some exceptions.
False tax deduction claims can get you in all sorts of trouble so when in doubt, call us to ensure you are maintaining compliance with the ATO. No matter what industry you are in and what expenses you have incurred throughout the financial year, be aware that you are unable to make a claim at all if you don’t keep a record. Try to use a logbook, capture expenses, and better still, keep your receipts. Whilst bank statements and credit card transactions are a good start, they don’t always prove a legitimate expense.