The ATO has recently issued an article titled ‘Getting your work-related deductions right this tax time’, which warns taxpayers that they will be paying closer attention to work-related expenses claimed this financial year.
The ATO will continue to review incorrect or excessive claims for all work related expenses, however in particular will be focusing on claims in relation to:
1. overnight travel;
2. transporting bulky tool and equipment; and
3. the work related proportion of use for computers, phones or other electronic devices.
Taxpayers claiming deductions relating to work-related expenses must have:
- spent the money,
- incurred the expenses in relation to their employment; and
- have records to prove the expenses.
Some common mistakes made by taxpayers include:
- Making claims for home office, mobile phone and computer expenses without evidentiary support of apportionment between work and private
- Incorrectly claiming travel between home and work; and
- Receiving a travel allowance and claiming the full amount without having spent the entire amount.
Our accountants will always advise of the substantiation requirements for any deductions that are claimed in your return to ensure that only expenses which can be supported are lodged with the Tax Office.
If you have any questions regarding these issues please contact your Client Manager or Senior Accountant and we will be happy to help.