Understanding Work Related Expenses

February 1st, 2022 | Business

When it comes to claiming work related expenses there can be a lot of confusion over what can and cannot be claimed.

These are some simple rules that you should keep in mind for claiming expenses relating to your employment:

  • Have you spent the money yourself and were not reimbursed by your employer? 
  • Does the money you have spent (or the expense that has been incurred) relate directly to the income that you have earned?
  • Have you kept records of the expenses to prove your claim e.g. receipts or valid tax invoices?
  • Was there a portion of private use e.g. a mobile phone that will have to be apportioned for work/private use?

The ATO closely monitors work related expense claims and will look for unusual patterns in claims that are made across all employment types.   Even though a colleague has claimed an incorrect expense successfully in their tax returns doesn’t mean the ATO won’t catch up with them. Recklessly claiming expenses that are not relevant to your employment can result in penalties which can be issued years after the claim was initially made.

It is important for you to know what you can and cannot cloam and we are more than happy to discuss this with you when preparing yoru returns.

Feel free to contact our office on 07 3208 9889 to arrange an appointment or you can complete our EasyPack on line by Clicking Here.