Tax & Deduction Claims for Tradies

Navigating the labyrinth of tax returns may not be a favourite task, but at Bottrell Accountants, Tax Agents & Financial Planners, we believe in optimising your outcomes by ensuring you claim every entitlement available. Here’s a comprehensive guide to the top tax tips tailored for tradies:

Claim Tools and Equipment

Whether you’re a business owner or an employee, the tools of your trade can be claimed as deductions against your tax. For business owners, immediate deductions are possible for tools purchased and installed before June 30, 2023, under the temporary full expensing measures. From July 1, 2023, to June 30, 2024, businesses with turnovers under $10 million can benefit from the Instant Asset Write-Off provisions, limited to assets costing less than $20,000.

For employed tradies, claiming a deduction for tools costing $300 or less is straightforward. Tools exceeding this cost require a gradual write-off over the tool’s life. It’s crucial to note that purchasing a set of tools doesn’t mean you can claim each individually, unless the set costs less than $300. The same rules apply to office equipment like computers, phones, and printers.

Vehicles

Tradies can claim the running cost of vehicles used for business purposes, excluding work-provided vehicles. Business owners can leverage temporary full expensing measures for a full deduction of the vehicle’s cost. Employees can claim depreciation over the vehicle’s life with a maintained logbook of work/private use. Alternatively, for travels under 5000 km with a passenger car or a ute with a payload of less than 1 tonne, a set allowance of 78 c/km (85 c/km for 2023/24) for business km is claimable.

Work-Related Clothing

Tax deductions extend to work-related clothing, including compulsory uniforms or protective gear. Tradies can claim for items like fire-resistant clothing, safety vests, steel-capped boots, and more. Compulsory work uniforms branded with the employer’s logo also qualify. Costs for sun protection items like sunglasses and sunscreen for outdoor work are claimable.

Laundry and Dry-Cleaning

The costs of washing, drying, and ironing eligible work clothes, or having them dry-cleaned, are claimable. For laundry expenses under $150 and total work-related expenses under $300, no written evidence is required. The ATO allows simplified amounts for self-done laundry: $1 per load for work-related clothing and 50 cents per load if other laundry items are included.

Clear the Decks

Businesses can claim tax deductions for obsolete or damaged materials left on-site at year-end. Writing off such costs before the fiscal year’s end ensures eligibility for deductions. Additionally, if facing unrecoverable debts from customers, writing them off by June 30 allows for a bad debt deduction.

Accounting for Tradie & Builders – See Link

Finally…

Two invaluable tips for a smoother tax experience:

Keep Good Records: Maintain thorough records, including invoices and receipts, to streamline your tax return and ensure you claim all entitled deductions.

Consider a Tax Agent: Tax complexities can be daunting. Engage a tax agent like Bottrell Accountants, Tax Agents & Financial Planners to navigate these complexities and guarantee accurate submissions.

Ensuring you get the best tax outcomes requires attention to detail and expertise. Let Bottrell Accountants, Tax Agents & Financial Planners be your guide through the intricacies of tax management.

About Bottrell Accountants, Tax Agents & Financial Planners

Our Accountants office, founded by Director Gavin Bottrell in June 2012, offers a range of advice services, including Personal Tax Returns, accounting, SMSF, business advice, and business growth to small, medium, and large businesses as well as individuals across Australia.

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Bottrell are your local team providing expert Tax Advice, Accounting, Audit, Bookkeeping, SMSF & Financial Planning services.

Contact us Today!

Take the first step towards maximising your tax refund – contact us today at Bottrell Accounting. Our dedicated team is ready to assist clients like you. Call us at 4933 6888 to schedule an in-person, phone, email or Zoom appointment.

Your financial well-being is our priority.