Common Tax Deductions for Tradies
November 28, 2016
If you are a tradie (employee or contractor) then you are probably paying for things that you may be able to claim on your tax return. Clothing (must have business logo) - you can claim your work-wear as long it bares the company logo
- Tools, equipment and technical instruments (purchase, lease and repairs)
- Protective items (hard hats, steel cap boots, safety glasses etc.)
- Laundry/cleaning of work clothes
- Sunscreen and sunglasses (if you work outside)
- Tablet, computer and mobile expenses (work related portion only)
- Work related software such as accounting software, word processing and spreadsheets
- Computer accessories such as headphones, hands free units, carry cases
- Home office running expenses (if applicable)
- Office Furniture - desks, chairs, bookshelves, lamps, heaters
- Internet expenses (apportioned)
- Training courses, (if directly related to your current role)
- Professional libraries, journal and magazine subscriptions
- Car/vehicle expenses including parking, tolls, running expenses, fuel, km driven etc.
- Travel expenses (between sites, to pick up equipment, to training courses or meetings)
- Travel diaries may be required.
- Accommodation and meals expenses when working away from home
- Union dues
- Insurance costs (life insurance, income protections, indemnity, business insurance)
- Licenses, permits and certifications.
Tradies spend a lot of time onsite and going between jobs. This means you need to be more organised to ensure that you claim everything you possible can. If you use cloud accounting software, using an app to snap receipts as soon as you receive them can help capture expenses on the run, no matter how small. Lots of little expenses can add up.
You can also use an app to capture any items you need to be reimbursed for (you won’t be claiming these on your tax return). If you are not on the cloud, keep a folder with two distinct areas – one for expenses and one for reimbursements and take it with you when you are out on site. The main thing is to get organised and stick with your system. No one wants to be dealing with a big pile of receipts at the end of the financial year, long after you can remember what you purchased and why!
Remember we are only a phone call away – so if you have any questions about your individual situation please do not hesitate to give us a call or send us an email. We love hearing from you!
The information on this site is of a general nature. It does not take your specific needs or circumstances into consideration, so you should consider your own financial position, objectives and requirements and seek personalised advice before making any financial decisions.