Lodge A Contractor Or Sole Trader Tax Return
OUR TOP TEN TAX SAVING TECHNIQUES YOUR OTHER ACCOUNTANT DIDN’T TELL YOU ABOUT
If you are a PAYG Earner and Fed Up With Paying Half Your Money in tax, you need an accountant who works for you, not the ATO.
That said, let’s be honest, It’s harder and harder as a PAYG earner to find ways to minimise tax in Australia. Many of the most obvious tax deductions have been shut down. Now your accountant has to be agile and informed in their approach to lodging a contractor or sole trader tax return.
Furthermore, when attempting to lodge your tax return yourself, many of the nuances of tax law in Australia are easily overlooked. This can end up costing you thousands of dollars each financial year.
There are still ways to can minimise tax in Australia with the right accountant.
Here are our top ten tax savings techniques for your 2018 sole trader tax return:
1. Car Expenses
You can claim expenses for your car if you drive for work. Remember to keep a log book of activity to ensure you can claim everything back.
2. Write Off Damaged Or Obsolete Stock
Make sure you do a stock take at the end of financial year so you have the opportunity to write off damaged stock.
3. Home Office Expenses— In Addition to Travel
- If you work from home, as well as claiming home office expenses, you can also claim home to work travel expenses (note: this is only in limited situations, but many accountants miss this one). In FCT v Collings 76 ATC 4254 it was held a computer consultant who had a job but was required to be on call for 24 hours, was entitled to claim her home to work travel expenses.
- There are a wide range of cases that this decision would apply to. Speak to your accountant about your specific situation.
4. Overtime Meal Allowance
- You can claim overtime meal allowance if you work after 6pm at night, depending upon your pay rate.
5. Self Education
- You can claim self-education if it relates to your work. For example, if you are a tradesman, and doing an apprenticeship, you can argue the expenses involved are tax deductible. You can also claim student union fees, textbooks etc. Contact us for an exhaustive list of deductions.
6. Overseas Trips
- You can claim overseas trips if they relate to your work, and can claim 100% of your airfare in some situations. Including if there is a private element to it. Talk to us for more details.
7. Internet and mobile
As a sole trader you are probably doing all the books and emailing from home, or your mobile. That’s why you can write of a portion of both of these costs.
8. Insurance Premiums For income protection
If you were not able to work for a portion of the year and now have to pay a premium on income protection insurance, you can claim back the premium on this type of insurance.
9. Sun Protection
If you work outside, make sure you claim those sunnies and any protective clothing to save you the lobster look when you tip a tin on the Friday.
10. Financial Loss
If you are having trouble recovering debts the ATO will allow you to write off a bad debt if documented properly. Contact us for the details.
Tax time can be daunting when faced with the matrix of tax deductions and responsibilities when lodging a sole trader tax return. Talk to the experts at Mora Wealth to make the most out of this tax year.
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Talk to an expert tax accountant in Perth to find out where you can save.