As many of us are now having to work from home, we may have been required to purchase things in order for us to be able to fulfill our duties in our new workplace. Some of you may have had to buy office furniture and/or equipment, and are now expected to use your home internet, phone line and electricity to complete your work tasks.
It’s at this time, as we’re buying & using these things, that I wanted to share some useful tips for keeping track of all of these (new) expenses.
If you have or are buying any of these items, even if you are not sure if they may be tax deductible or not, you should be keeping good records of your purchases. A helpful idea that I often give to clients is to take a photo of their receipts on their phones and to save these in an Album or File called something like “Tax Receipts 2020”. This way, come Tax Time, you will be able to simply go to that album/file/folder and look up the records of all of your purchases and then discuss with your tax agent if they can be claimed or not. Also, claims can be made for some of your running costs within your house or home-office during this period of ‘forced’ work-from-home.
A great idea for this is to keep a diary or log of the number of hours you have been doing each day. This information is helpful in ensuring you are able to make claims for things like electricity & internet usage.
Just remember though, more often than not, direct household costs such as mortgage repayments and residential rents are only deductible under very specific circumstances and most of you will not be entitled to these.
Again, any questions regarding these, just give us a call and we will be happy to discuss & support where possible.
Here is a helpful link regarding working from home supplied by the ATO:
From The Elite Accounting Team.