Since the onset of COVID-19, the trend of working from home has prompted many individuals to claim work-related expenses as home office running expenses. Let EndureGo Tax, the leading accountant and tax agent in your neighborhood, help you maximize your tax refund and reduce audit risk by claiming eligible work-related expenses on your behalf.
The value of these expenses is expected to spike for the 2021 income year. Taxpayers should note that claiming home office running expenses or working from home expenses may render certain other expenses, such as travel, ineligible.
Claiming home office running expenses or working from home expenses may render certain other expenses, such as travel, ineligible.
ATO’s Audit Focus: How to Stay Compliant and Reduce Audit Risk
The Australian Taxation Office (ATO) has announced that it will focus its audits on working-from-home expenses, personal protective equipment, clothing and laundry, self-education, car, and travel expenses in the coming year. Taxpayers need to pay close attention to this article to ensure their claims are accurate and to reduce audit risk.
The ATO has issued a warning to taxpayers against “copy-pasting” work-related expense claims. Taxpayers who claim work-related expenses such as travel between work sites or uniform expenses while working from home may face targeting by the ATO for explanation, especially if their deductions significantly exceed those of others with similar jobs and incomes. Taking extra care when lodging your return can help you stay compliant and reduce audit risk.
EndureGo Tax’s Expertise
We at EndureGo Tax, as the leading accountant and tax agent in Sydney and Adelaide, have assisted numerous clients in maximizing their tax refund expenses. For instance, with our assistance, a professional landscape artist who annually spends over $20,000 on camera gear receives a tax refund of over $10,000 each year, significantly reducing his audit risk. If you wish to claim more work-related expenses safely, consult with one of our professional CPA accountants.
The ATO’s expectations regarding dress code while working from home are worth pondering. However, for taxpayers whose jobs involve physical contact with customers or clients, they can claim items such as gloves, face masks, sanitizer, and antibacterial spray as work-related expenses.
Personal Protection Expense Claims
Taxpayers must use the items for work and cover the upfront costs themselves to claim personal protection expenses, as per the ATO guidelines.
Taxpayers should avoid simply copying and pasting the previous year’s claims without evidence. While some unusual claims may be legitimate, failure to provide evidence may result in the disallowance of the expense and imposition of a shortfall tax penalty.
Seeking Professional Guidance
If you’re unsure about the amount you can claim related to working from home, come to EndureGo Tax. As the leading accountancy firm in Sydney and Adelaide, we can help alleviate your tax burden. Call us at 1800-841-312 to schedule a consultation.
