The deadline is looming for the submission of your 2014 tax return. For most people lodging via a tax agent the deadline is 15 May. Those lodging themselves need to do so by 31 October each year.
Using an accountant to help you with your tax return will not only save you time and stress, it will also ensure that you get a better tax outcome. Apart from avoiding errors an accountant sometimes find extra deductions or that you weren’t even aware of.
When completing a tax return, you’re entitled to claim deductions for expenses that are directly related to earning your income. You subtract these allowable deductions from your total income to arrive at your taxable income. You will only pay tax on your taxable income. Did you know that you can claim your accountant charges as well as travel to the accountant as a fully deductible expense on a tax return!
Keeping good accounting records is vitally important to tackling your tax return. People most likely to miss out on deductions are the ones that are not organized, don’t keep track of receipts or don’t keep a logbook! Spending just a little time each week can save you hours of frustration and ensure you receive the best possible tax outcome. Whenever you buy anything related to work, no matter how small it is, keep the receipt. Examples of deductions that you can claim include:
- You can claim vehicle and other travel expenses directly connected with your work, but you can’t claim for normal trips between home and work as this is considered private travel
- If you are required occupation-specific clothing, protection clothing and uniquely distinctive uniforms, you can claim a deduction for the cost of buying these items.
- You are entitled to claim deductions for home office expenses including computer, phone or other electronic devices should you be required to use them for work purposes.
- Self-education expenses that are work-related can be claimed for deduction
- Tools, equipment and other assets that are used to help earn your income can be deducted either in full or over a few years.
To get the best possible tax outcome, you don’t have to read complex tax legislation or do an accounting degree. Simply contact Proactive Accounting and Financial Services, we will help you keep on the right side of the ATO while maximizing your tax refund. And remember that our very low fee is tax deductable!
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