Work Related expenses – 2020

Work Related Expenses – 2020

Although the coronavirus lockdown has changed the work habits of many taxpayers, the fundamental tax claims for 2020 apply the same old tax principles.

Home Office

  • Claim the costs incurred, plus a new simpler short-cut method of 80¢ per diary hour.

Travel

  • Motor vehicle costs can be claimed under several methods, but using a logbook will almost always produce the best claim. If you haven’t kept a logbook, how will you know what you missed out on? Total kilometres travelled by Australia generally has declined, leading to a similar expectation for every taxpayer. Are you any different?
  • Other travel claims are expected to be much lower due to lockdown, so strong evidence of purpose as well as receipts can be expected.

Subscriptions

  • Trade associations, etc, same rules. Have digital subscriptions or anti-virus software subscriptions increased?

Clothing & Laundry

  • Same rules as always, but use may have changed. It is probable that most taxpayers will have reduced costs, but other habits may change e.g. sanitiser, which has significantly increased. What are your changes? Think about them now and make a note or ask the question.

Tax Agent Fees

  • As always, these expenses are tax deductible.

Other

  • What expenses have increased which you can provide a rationale and some evidence to connect to your income generation?

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Nii Coutts Redington Avatar
Coutts Redington
Company
First and foremost, we’re accountants. But we like to think of ourselves as a lot more. We work closely alongside business owners to bring more clarity, direction, and support, improving elements of your life beyond just the business. And, with our firm’s history in the Townsville area going back to the 1950s, we’re an established part of the local business community. We take that responsibility seriously.

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