Common tax deductions for tradies: Give your refund a boost
If you are a tradie looking for ways to save, you may be able to take advantage of some common tax deductions that can help boost your tax return. Outlining some of the common deductions that are available for tradies, find information below on how to claim correctly, ensuring you get the most out of your tax return.
Tax deductions for tradies
As a tradie, you need to be certain about what you can and can’t claim on your tax return. To ensure you get the most out of tax time, if you’ve bought any of the following, you may be able to claim the following tax deductions on your tax return:
- Tools and equipment: You can claim tax deductions for the cost of tools and equipment that you use for work. This includes items such as power tools, ute or van, trailers, ladders, safety gear and more. To claim this deduction, you will need to keep receipts for any tools or equipment that you have purchased.
- Vehicle expenses: If you use your own vehicle for work purposes, you may be able to claim a deduction for the associated costs. This can include fuel, oil, repairs and maintenance. You will need to keep records of your vehicle expenses to claim this on your tax return.
- Uniforms: If you are required to wear a uniform for work, you may be able to claim a tax deduction for the cost of purchasing and maintaining it. This includes items such as shirts, pants, jackets and safety gear. You will need to keep uniform receipts handy for tax time
- Home office expenses: If you have a dedicated home office space where you do some of your work, you may be able to claim a tax deduction for the associated costs. This can include things like electricity, internet and phone usage, stationery and more. You will need to keep records of your expenses so you can claim this deduction at tax time.
- Education and training: If you have undertaken any education or training courses that relate to your industry, you may be able to claim these back at tax time.
- Clothing: If you purchase clothing that is specific to your job, you may be able to claim a tax deduction for the cost. This can include items such as safety gear, uniforms, and protective clothing. You will need to keep receipts for any clothing that you have purchased.
- Memberships and subscriptions: If you are required to have memberships or subscriptions for work purposes, you may be able to claim a tax deduction for the cost. This can include things like union fees, professional association fees and magazine subscriptions. You will need to keep records of your expenses to claim this tax deduction at tax time.
Keeping accurate records for your tax return
When claiming tax deductions on your tax return, it is important to keep accurate records of all your expenses. This includes receipts, invoices, bank statements and more. Keep all your records in a safe place so that you can easily access them when you need to.
Ready to speak with a qualified accountant?
Offering client-focused solutions, Greenview Accounting Group makes the entire tax return process a less stressful and confusing experience. Your local accountant and business advisory group going above and beyond to ensure your needs are met, call 03 5629 6133 to make an appointment. Or view their entire service range online.