The problem is doing your annual tax return is inevitable and, rather than paying a premium or ending up in trouble because you’ve overclaimed or haven’t submitted, it’s easier to take some simple steps now to make your life easier by June 30.
This long weekend is the perfect time to take action to sort yourself out.
USE YOUR CARD
If you pay cash for a deduction and lose the receipt, you have potentially lost all chance of claiming a tax deduction. That’s why paying with a card is important.
Sure, the bank statement might not be enough for your proof of claim, particularly if the only description says “David Jones.”
However, most retailers who use an EFTPOS system can now provide a copy of your receipt, providing you can provide the date and amount paid.
Best practice is to take a photo or upload the receipt into an app but your backup is to pay with a card, so you can approach the retailer with your bank statement as proof of purchase and request a copy of your original receipt, should you ever need it.
KEEP LOG BOOKS
If you use your car for work or are working from home, it’s important to ensure any log books you need are kept up to date.
If you are claiming a percentage of your motor vehicle expenses, your log book proving business use needs to be less than five years old.
If you are working from home, the tax office suggests you keep a diary for a month, which allows you to claim an hourly rate for a home office.
GO THROUGH YOUR DIARY
With so many of us jumping into a car for the occasional work trip, using our public transport cards to visit a client, attending conferences or buying a meal for an overnight work trip, it’s easy to forget about these incidental purchases come tax time.
That’s why flicking through your calendar to prompt you to look for times you might have spent on a deduction for work is essential.