Tax tips for 2019
Claim Tax Back on your Tools this EOFY
There's nopthing quite like the End Of Financial Year for a Tradesman. It's that perfect time of year to stock up on epic amounts of all your favourite tools and then write them all off on tax ;) Remember, this year tools are tax deductable for small to medium businesses up to $30,000! Tax time doesn't need to be one big headache and it shouldn't be costing you an arm and a leg - there's also some really fantatstic deductions available for both salary and wage workers. To help with the burden of processing your tax return, we've put togther a list of top tips that will help maximise your return and hopefully provide a little clarity about the whole process.
Tax Tips for 2019
1. Know what you can deduct on - a good way to be sure is to check the ATO website here: https://www.ato.gov.au/General/Tradies---be-certain-about-what-you-can-claim/
2. Small businesses can immediatley write off all assets that cost less than the threshold amount.
If you purchase assets that were first used or installed ready for use in your business:
- From 7.30pm (AEDT) on 2 April 2019 until 30 June 2020, you can immediately deduct each asset costing less than $30,000.
- From 29 January 2019 until before 7.30pm (AEDT) 2 April 2019, you can immediately deduct each asset costing less than $25,000.
- From 12 May 2015 until 28 January 2019, you can immediately deduct each asset costing less than $20,000.
3. Travelling from site-to-site often? Well your motor vehicle expenses are deductable, just remember to hold on to all your receipts to maximise your return and always remember to carry a log book for all kms done for work. You can also claim deductions on the following related to your work vehicle:
4. USEFUL TAX TIME TIP - Take a photo or screenshot of all your receipts and store them on the Cloud or Google drive - you'll never be able to run out of space there!
5. Are you on your phone at work? Well you can claim on work related phone calls as well, ask your service provider to email you all your bills. Sorry this doesn't include time spent scrolling through social media or tagging your mates in memes. But we do encourage you to follow us on Facebook https://www.facebook.com/totaltools & Instagram https://www.facebook.com/totaltools
6. Obviously a lot of your work is outside, so you can claim on protective wear as well as various forms of sun protection, including:
- Work Boots,
- Work clothes
7. There's no doubt after working hard your clothes are going to get dirty so remember, you can also claim on certain Laundry related expenses. However the ATO will be cracking down on this and deductions are quite different to how they were in previous years. We would reccomend doing some reading on the topic which can be found here: https://www.ato.gov.au/General/ATO-advice-and-guidance/In-detail/Private-rulings/Supporting-documents/Deductions/Uniform-and-laundry-expenses/
8. Another tip - last year's tax lodgement cost can be claimed on this years return - always good to know :)
9. The best and easiest time to lodge. Don't get caught up in lodging your return as soon as possible the best time to do so is generally between mid-August and September. This helps you to take advantage of the pre-fill information available in myTax or with your tax agent.
10. Bonus Tip! Ensure you join our Total Tools Insider program to keep all your transactions in one easy spot. We also have plenty of great offers available within the app, so why not download the app and become a Total Tools Insider.
Of course these are only some tips, it's always best to speak to a registered accountant or financial professional regarding anything to do with your tax lodgement.
Remember, now is the time to start stocking up on all your favourite brands and tools - an easy way to do so is through our two HUGE June Tax Busting catalogues, found here: https://www.totaltools.com.au/on-sale-catalogue