Tax Time will look substantially different in the 2020 year, with flow-on effects from COVID-19 making their presence felt.
With more people working from home, reduced hours of work, and some people having the misfortune of not being able to work at all, The A.T.O. will expect to see a reduction in claims for work-related expenses.
Two very pertinent examples would be in the area of Laundry and Travel expenses. It would seem obvious that if you aren’t wearing your work uniform then you can’t claim for Laundry expenses and if you’re not travelling for work, you can’t claim for Travel expenses.
Similarly, if you’re working reduced hours, the level of any work-related expenses should show a subsequent reduction.
THREE GOLDEN RULES FOR CLAIMING WORK-RELATED EXPENSES…
- You must have spent the money and not been re-imbursed.
- The expenditure must relate directly to earning your income.
- You must have the records to prove it.
Nothing new there, just an increased opportunity to get things wrong due to the complications arising from the influences brought to bear by the dreaded pandemic and a myriad of changed circumstances and restrictions.
Your INVISION Team can help you with all of this…
An added degree of complication arises this year with JOBKEEPER and JOBSEEKER payments needing to be considered.
The key is for Taxpayers to hold off from lodging their returns until Employers have finalised their income statements. This aspect is vitally important since the information is pre-filled in MyGov and will be automatically included in tax returns.
Our Sole Traders who have received the JOBKEEPER Payment on behalf of their business will also need to include these payments as assessable income for the business. If you’re unsure of how to treat any of these items, you are truly fortunate that your INVISION Team is as close as the other end of your phone!
A Closing word from Alan…
“I cannot emphasise too much the importance of having complete and accurate expenditure records. IF you have been sending your expense claim invoices to your INVISION Team, you can be sure we have the records to prove it!”
Take the first important step today…call or email Alan and his INVISION Team and ask them to show you how to navigate your way through this new and different obstacle course.
Contact Invison Bookkeeping on (07) 3293 1436 or email us