Latest news with #workexpenses
Daily Mail
26-05-2025
- Business
- Daily Mail
Expert reveals the biggest mistake Aussies can't afford to make at tax time
Aussies who rush to get their tax return in early are making a huge mistake, a peak accountancy group has warned. As the end of the financial year looms, income earners can claim up to $300 worth of work-related expenses, excluding travel, without the need for receipts. Manually claiming work expenses is often time consuming and many Aussies are tempted to complete their return as soon as possible on July 1 to get a quick tax refund so there's money in the bank to pay those bills. But Jenny Wong, the tax lead with CPA Australia - representing Certified Practising Accountants - said those who rushed to fill out their tax return could be missing out on important deductions. ' Cost of living pressures could mean some people are eager to lodge their tax return as quickly as possible to access a refund, but it's important to be patient, gather your evidence and claim everything you are entitled to,' she said. 'Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot. Failing to claim everything you're entitled to means less cash back than you could otherwise get.' Now is the time to chase up all those receipts to save the hassle later. 'Hopefully your receipts aren't down the back of the couch, but they might be in your emails and phone apps. Or maybe the junk draw?' Ms Wong said. Travel expenses Ms Wong said those filing their tax return too early were more likely to miss out on travel expenses incurred on the job. 'Maybe you travelled more for work and were not reimbursed by your employer for meals or other travel essentials,' she said. While it's possible to make a total claim on tax if the deductions are less than $300, this shortcut doesn't cover travel allowance, meal allowances, or the use of a car. That means workers whose employer gives them a travel allowance, also known as an award transport payment, can also make a claim if travelling for work still left them out of pocket after a workplace allowance. 'Any out-of-pocket work-related expenses could be tax deductible, but you'll need evidence in case you are asked in an audit. Think about what you've had to purchase for work. Check your bank statements,' Ms Wong said. Those using their car also need to identify which travel is used for work. 'For vehicle expenses, you must be able to identify and justify the percentage that you are claiming as business use,' Ms Wong said. 'To claim accurately, you will need to use a logbook or diary to show private versus business travel.' Buying new work tools Rushing a tax return could also jeopardise the expense of work-related items. Those working from home can claim the cost of a desk or a chair worth up to $300 in one financial year. If the item is worth more than $300, the item can be claimed on tax over several years, based on how long it's likely to last for. The same $300 rules applies to buying tools needed for the job. 'Or maybe you started a new job where you had to buy tools, subscriptions, or pay for training and security clearances, for example,' Ms Wong said. Australians have until June 30 to buy any essential work items to be able to claim the deduction for the 2024-25 financial year. Working from home claim Those working from home can multiply by 70 cents the number of hours they worked from where they lived in 2024-25. This method also requires daily diary keeping. H&R Block calculated the typical Aussie working from home would claim 1,095 hours over the financial year, adding up to $767. Or they can alternatively use the actual cost method, based on add up electricity and internet bills. 'Which work-from-home expense type makes most sense for you - fixed rate or actual cost method? If you've been good at keeping records throughout the year, the actual cost method may be more beneficial,' Ms Wong said. Tell the truth Those who lied about their work expenses are more likely to face an audit from the Australian Taxation Office. 'Getting your tax return right is your responsibility,' Ms Wong said. 'This means declaring all of your income and claiming the appropriate expenses. 'Failure to properly declare your income increases your chances of being audited by the ATO.'
The Sun
21-05-2025
- Business
- The Sun
Do you wear a uniform to work? How to claim back HUNDREDS of pounds in refunds
YOU could be owed hundreds of pounds in refunds purely based on your job. HMRC allows you to get tax relief on certain work uniforms - and, if you're eligible, you can backdate a claim by four years. 1 Here's everything you need to know about getting refunds on work-related expenses. What is a uniform tax rebate? A uniform tax rebate is open to workers who typically wear attire that identifies them as being in a certain profession, like a police officer or nurse. You can also claim the tax relief if you work in agriculture, on aeroplanes or the construction sector. There is a full list of professions which qualify for uniform tax relief, which you can see at You may also be able to claim on specialist clothing that doesn't identify as being in a certain occupation - like overalls or safety boots. You can only claim tax relief on work attire if you have bought, cleaned, repaired or replaced any yourself. You also won't qualify for relief if your employer washes your clothes or has a facility offering a cleaning service. Self-employed workers should claim uniform and laundry expenses when filling in their self-assessment tax return. How much can you get? How much tax relief you can get on your work uniform depends on your job, and how many years you are claiming for. The standard flat-rate expense allowance is £60, but you don't get all of this. You get back the amount of tax you would otherwise have paid on that £60. For a basic rate taxpayer that is 20% of £60 which is £12. That means if you were claiming for the current tax year and the preceding four, you would get £60 overall. You have until April 5, 2026, to claim the relief for the 2021/22 financial year, after which you won't be able to. However, based on your job, there are different rates based on the type of role. Pilots' rate is £1,022 meaning a basic rate taxpayer could get £204 a year - or £1,010 if backdating ever year until 2021/22. Nurses and midwives' allowance is £125 meaning a basic rate taxpayer could get £25 a year, or £100 over five years. If you are a higher rate taxpayer, you get 40% of your allowance. So someone getting a standard £60 allowance could get £24 a year. If you're claiming tax relief for the current tax year, HMRC will change your tax code and you'll be taxed less on your future pay. This means your monthly salary will rise slightly. If you are claiming for previous tax years, HMRC will either make adjustments through your tax code meaning you'll get more future pay or a straight tax refund. You'll be sent a letter by HMRC if you're owed a refund with details on when it will be paid. How to claim the tax relief If you are claiming tax relief for the first time you can do it online or by post by filling in a P87 form. You can find the form via: If you are posting the form, you have to send it to: Pay As You Earn, HM Revenue & Customs, BX9 1AS. You'll need to have the following information to hand when filling out the form: Employer's name and address Your occupation, job title and industry sector Your details, including your national insurance number and your pay-as-you-earn (PAYE) reference Whether you're claiming flat-rate expenses (usually you will be, if not, you'll need detailed records of costs) How you want to be paid – into your bank account or by cheque If you've claimed uniform tax relief before, your tax code should have been adjusted so that any cash you are owed is issued through your pay. But, if this doesn't happen, and you had expenses of less than £1,000, you may need to call to reclaim any refunds over the phone. You can call HMRC on 0300 200 3310, 8am to 8pm Monday to Friday, or 8am to 4pm on Saturday.
Yahoo
19-05-2025
- Business
- Yahoo
Common $358 a day expense the ATO lets you claim on tax without receipts
An Australian accountant has revealed the 'easiest way' taxpayers can claim travel expenses for work. The Australian Taxation Office (ATO) usually requires you to keep a receipt to claim a tax deduction, but there are some exceptions to this rule. Hive Wise founder Hripsime Demirdjian told Yahoo Finance that a little-known exception applied to taxpayers who receive a travel allowance. These taxpayers don't have to keep receipts to claim a tax deduction for their travel costs, provided they are claiming "reasonable amounts". 'It is common for employees to receive a travel allowance, especially if their job regularly requires them to travel away from their home overnight to perform work duties,' she explained. RELATED Simple way to get an extra $1,322 in your ATO tax return in 2025: 'Act now' Daunting retirement 'squeeze' about to hit generation of Aussies: 'Hidden cost' Money crisis sparks capital city exodus as Australians embrace 'new frontier' 'The travel allowance will typically cover expenses for accommodation, food, and drink. The allowance can also cover incidental travel costs, which are smaller costs you incur as a result of travelling, such as parking and public transport.' The ATO sets out 'reasonable amounts' that taxpayers can claim for travel allowance expenses per day without receipts. Demirdjian noted that the cost varied depending on where you are travelling because some cities would be more expensive. It also varies depending on your annual the 2025 financial year, for example, employees earning up to $143,650 per year can claim $358.90 per day for travel to Sydney. That includes $198 for accommodation, $33.90 for breakfast, $38.10 for lunch and $64.95 for dinner, and $23.95 for incidentals like parking or public transport. 'The ATO also provides reasonable amounts that you can claim when you are travelling internationally, so it doesn't just apply to domestic travel,' Demirdjian said. 'The amounts that you can claim do vary, though, so you'll need to go back and check the Taxation Determination or ask your accountant.' The ATO gave the example of an accountant earning $150,000 a year who is required to travel to Sale in regional Victoria for work four days and three nights each month. Her employer pays for her accommodation directly and gives her a meal and incidental allowance of $140 per day for the four days of travel. She spends $25 on breakfast, $30 on lunch and $50 on dinner. Because she spent less than the 'reasonable amount' on meals and incidentals, she can claim a deduction for the $105 per day she spends on meals and doesn't have to keep receipts. She can't claim accommodation because her employer paid for it. If she spent more than the 'reasonable amount' and wanted to claim that, she would need to keep receipts in that situation. 'As long as the deduction you are claiming is below the 'reasonable amount', then you don't need to keep a receipt to substantiate the expenditure,' Demirdjian told Yahoo Finance. 'If you incur any types of costs which the travel allowance doesn't cover, then you'll need to substantiate those with a receipt as well." It is common for employers to receive a travel allowance if their job requires them to regularly travel for work. 'A good way to determine whether you're entitled to receive a travel allowance is to refer to your employment contract or any applicable industry awards,' Demirdjian said. 'If you are receiving a travel allowance, your payslip will include this allowance as part of your gross earnings.' You can see more about the ATO's rules around travel allowances here and the 'reasonable amounts' while retrieving data Sign in to access your portfolio Error while retrieving data
News.com.au
07-05-2025
- Business
- News.com.au
‘Dubious claims': What Aussies try to sneak past ATO
As Australians gear up for tax time, an industry body has revealed some of the most outrageous deductions workers have tried to claim. Chartered Accountants Australia and New Zealand tax leader Susan Franks said a client of one tax agent had tried to claim a luxury yacht as a work expense because they needed to do business on an island. Others have tried to claim engagement rings, hair cuts due to their hair growing at work and even pilates equipment due to a sore back. 'There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership, as the individual needed to be strong and fit to renovate their rental property,' Ms Franks said. 'Another related to a pilates reformer machine purchased to help an office worker who had a sore back.' Ms Franks said some Australians tried to claim big-ticket purchases through loose links to their job or business. 'We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business,' Ms Franks said. 'Another claimed a luxury yacht as a work expense – because they might have some business to do on the islands.' She said taxpayers also tried to claim vet and food bills for pets, pools and school fees. Ms Franks said despite the temptation, Aussies should only claim fair tax-related expenses. 'We understand that some Australians might be tempted to push the boundaries, but let's avoid making dubious claims this year,' she said. Meanwhile, the Australian Taxation Office said this year it was taking aim at work-related and working-from-home deductions of the nation's 15 million taxpayers. According to the tax office, more than 10 million people claimed work-related deductions, including working-from-home claims, in the last financial year, although some Australians took it a little too far. One was a mechanic claiming an air fryer, TV, gaming console and other electrical items as work expenses, while another was a fashion industry manager wrongly claiming more than $10,000 in luxury-branded personal clothing and accessories. In another case, a truck driver tried claiming swimwear used to take a dip during a stop along the highway. ATO assistant commissioner Rob Thomson reminded taxpayers that the ATO's role was to collect the correct amount of tax owed, and exaggerated deduction attempts would not be tolerated. 'While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense, it needs to meet strict criteria,' he said. 'While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible.' Mr Thomson said if your deductions didn't pass the 'pub test', it was highly unlikely your claim would meet the ATO's strict criteria. 'Don't fall into the trap of thinking you can claim expenses like travel to and from work and childcare costs,' Mr Thomson said. 'These expenses are personal in nature and cannot be claimed. When in doubt, look for guidance on the ATO website or speak with your registered tax agent.'
Yahoo
06-05-2025
- Business
- Yahoo
ATO 'hit list' revealed for 15 million Aussies as taxpayer's common claim targeted: 'ATO will disagree'
ATO assistant commissioner Rob Thomson said the tax office will be watching certain deductions like a hawk. (Source: Facebook/Getty) The Australian Taxation Office (ATO) has revealed what it will be carefully looking at when 15 million taxpayers submit their tax returns in a few months. From July 1, you can hand over your income and tax details in the hope of getting a cash boost. But those submitting work-related expenses and working-from-home (WFH) expenses will be watched like a hawk. The tax office is also paying very close attention to those with second jobs or side hustles, which applies to nearly one million people. ATO assistant commissioner Rob Thomson said they saw some fairly "outrageous" claims last year. These included: A taxpayer had a two-day conference in Sydney and wanted to get some headshots done, so they tried to claim a haircut as a work-related expense A truck driver wanted to claim a pair of swimmers because he stopped at a pool near a highway for a lunchtime dip A mechanic wanted to claim $10,000 worth of luxury clothing and goods, along with an air fryer, TV, gaming console and other electrical goods A real estate agent tried to claim over $30,000 for their new veneers "Maybe they were trying to distract from the fact that the third bedroom wasn't really a third bedroom – who knows,' Thomson said. Two-thirds of people who submitted a tax return last year included work-related expenses, which you're able to deduct from your taxable income if it's legitimate. Finder research revealed last year that while 90 per cent of people do the right thing, there is a small portion of the population who outright lie on their returns. RELATED Roughly two million people have tried to slip something through that wasn't true, with 5 per cent adding more deductions, while 3 per cent didn't report overseas income. 'If your deductions don't pass the pub test, it's highly unlikely your claim would meet the ATO's strict criteria,' he said. 'Work-related expenses must have a close connection to your income-earning activities, and you should be prepared to back it up, with records like a receipt or invoice.' Do you have a story? Email Do I have to declare a side hustle to the ATO? With the cost-of-living crisis gripping peoples' wallets, many have turned to other streams of income to keep food on the table and a roof over their heads. Yahoo Finance contributor and director of tax communications at H&R Block Mark Chapman said many aren't properly declaring their extra cash from their side hustles.
