There has been a lot of media interest recently around tax deductions that you can claim in relation to work related expenses. We often hear people say that their previous accountant or workmate had claimed for something so why won't we. And the reason is simple - we are here to (wherever possible) protect our clients from ATO scrutiny or fines. So by playing within the lines, we do that. In the new world of data matching, these types of incorrect claims will become more visible to the ATO - in fact, the ATO have already come out with their hitlist for the year!
When processing your tax return, we now get alerts when expenses claimed are outside the benchmark for those in similar positions or industries. And while that in itself doesn't mean that the claims aren't legitimate, we will ask you to confirm:
- that you actually spent the money yourself and that you weren't reimbursed by your employer
- that the expense directly related to your employment
- that you have a record to prove the expense eg. receipts or invoices
The ATO has a myDeductions tool that helps you keep track of your deductions. We will always work for you to find every possible deduction, but at the same time, keep you out of the ATO's spotlight by making sure you are only claiming what you are allowed. For further information on what you can and cannot claim, click here or contact our office