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Tax Time – We're Nearly There – 7 Tips to Help You Prepare!

If you have been organised, Tax Time doesn’t create a paperwork nightmare. Files are orderly, and you have your ‘Business’ matters tidy and in order.  

On the other hand, if you have been less diligent, you might find the shoe-box overflowing with receipts or the bottom drawer in disarray, a collection of bits and pieces. But don’t despair, start preparing now with these 7 Tips.  

  1. Getting ready – start by sorting and filing, whether you are lodging your own return or have an agent. DIY, need advice, contact Blackburn Accounting, we can help take the stress out of tax time. 
  1. Missing documents – don't wait to follow up if you need copies of receipts or expense records. Many deductions need supporting evidence to verify. 
  1. What’s claimable, what’s not – this is crucial! Knowing what are legitimate claims, deductible items, and those that are not. If you are self-employed, a Tradie, or a mobile repairer or anyone with high vehicle and mileage usage, you need to understand your tax reporting requirements. Make sure you can support any vehicle or other claims with the necessary proof.      
  1. Know your reporting responsibilities – Don't overstate claims, double claim or blur the lines of personal and Business use. This applies to all items. Travel and vehicle-related deductions consistently come to the ATO's attention. Importantly, separate private and personal use.   
  1. Gig or side hassles – critical you know and understand the scope of what is taxable. The ATO website provides guidance for this. 
  1. Remote, working from home – understand and be clear about your reporting obligations. 
  1. Professional advice. Blackburn Accounting is your Family Business Specialists, ready to help you with all your taxation and Business matters. We stay up to date with regulations, rules, and changes to protect your interests.  Additionally, we offer a range of services, including bookkeeping, payroll systems, and processes. 

A popular item and question! What about my dog!   

Yes, there are many a Tradie Ute passing by with a Kelpie perched on the back or Butch the bulldog is seen at a building site. They are man‘s best friend and a great workmate! Ask their owners! 

Raises the question: Are Rover’s or Butchs expenses, vet bills, and food taxable deductions? 

The key, the ‘test’, is whether expenses for your dog are directly related to earning your income! You know the answer!