Tax for Tradies Bentleigh

Tax deductions for Tradies – MAS Tax Accountants – Bentleigh

Author : Yohan Soza – June 2015

Being self employed as a Tradie is a way of life for some Australians. The flexibility in working hours, being your own master, known as an expert/professional in a given field, extended holidays! are just a few reasons that entice most to choose a specialized line of work and be self employed. These tradesmen or tradies as widely and fondly known among Aussies usually work on their own with a home/office, a vehicle (or Ute) and specialized tools, among others.

It’s quite lucrative if a tradie consistently deliver a good, efficient and reliable service to his/her customers. However unlike the fixed income or salaried employee, the tax time can be a challenge to most tradies. The PAYG on income is not deducted monthly hence there could be negative tax liability surprises, in addition all work related expenses may not be properly recorded, invoices may not be properly maintained hence collections are a mess; the list goes on.

Whilst there are answers to most of the above, the undersigned has touched on Tax for Tradies Bentleigh. Some are commonly known expenses which are tax allowed, but if the list is carefully analyzed there are quite a few expenses one would easily miss! For a Tradie these costs add up, and finally end up paying more taxes annually than legitimately or legally required.

MAS Tax Bentleigh has formulated a list of expenses that can be tax deductible ( or not as the case may be) which should enable most tradies to save on their tax liability during the upcoming 2015 tax season. It is obviously not an exhaustive list but intends to cover most material expenses widely discussed today between tradies. This is for work related expenses incurred in the normal course of business to generate income, hence any private expenditure should be identified and taken out.

Expense	Details	Tax Deductible?

Protective clothing	All clothing inclusive of steel capped shoes, High viz, helmets, etc	Yes

Laundry	For all work related clothing	Yes

Tools & Equipment	Now upto 20,000 fully deductible in year of purchase for 2015/16 or can
	be depreciated over useful life if over $ 20,000. This is limited to $ 300 for	Yes
	2014/15

Repairs	Incurred on assets used for work	Yes

Transport	Vehicle expenses like fuel, servicing etc or public transport	Yes

Learning/coaching	Any learning course or costs to enhance the quality of work or to be upto
	date in the line of work, inclusive of travel expenses in relation	Yes

Mobile Bills	If the mobile phone is solely for work and kept standby for customers	Yes

Sun protection	Sunscreen, sunglasses used during work	Yes

Home office	If a part or a room at home is used for work related activity, this portion of
	rent, electricity, internet etc	yes

Super contribution	Up to $ 25,000 per year, paid after-tax income. ( claimable in following year)	Yes

Stationery	Used for work	Yes

Bank Charges	Only if the bank account generates interest income	yes

Interest	Borrowed for work related financing of assets etc	Yes

Tolls/parking	Incurred during work related travel	Yes

Trade union/ prof	Trade related association body expenses , including annual practicing	yes
Association fees	certificate costs

Technical publications	For the line of work	Yes

Tax/accountancy fees	Services taken for tax and accounts preparation	Yes

Public liability	If required to carry out work	Yes

Legal expenses	For work related contracts etc	Yes

Insurance	Income continuance, sickness and accident	Yes

Meals	Routine meals during work and travel	No
	If worked after normal hours and overnight travel	Yes


Fines	Imposed by court or law	No

Entertainment	Drinking or dining out with friends	No

Conventional clothing/	not related to work	No
Grooming

Driver’s license	Renewal and acquiring fees	No

Club membership	Social clubs fees	No

Child care	Child support expenses	No

Other	Any other costs incurred to generate work income its most often	Yes

Need more details? We specialize in Tradie tax returns! So why not call MAS Tax Accountants – Bentleigh for a free confidential discussion? You will be amazed on the legitimate tax deductions you have been missing out all these years.

Call Yohan 0451 011 399, or 1300 627 829 alternatively you can contact us below

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