With end of financial year and tax return time fast approaching, itâ€™s a timely reminder to ensure you are claiming expenses compliantly. In a recent interview, ATO Assistant Commissioner Graham Whyte stated that, while the Australian Taxation Office (ATO) is always on the lookout for compliance across the board, this year there is a focus on personal deductions, particularly surrounding incorrectly or over-claimed personal expenses. This includes deductions relating to car and travel, and phone and internet expenses, the ATO having warned people to keep receipts and seek advice if in doubt about the legitimacy of anything claimed.
So how can you ensure your deductions are legitimate?
As a general rule, you must have spent the money yourself without reimbursement, the expense must be related to your work and you must have a record to prove it. Sometimes, however, the scope beyond that can tend to be a bit ambiguous for an individual to know exactly what or how much they are entitled to claim versus what is too much. Claim too much and you place yourself in a position of risk.
Professional contractors have even more to consider when dealing with their tax affairs, with taxation often one of the more risky areas for professional contractors. What and how contractors deduct expenses depends on the company structure one is operating under, and also relies on specialty taxation knowledge in any given area.
This knowledge is related to specific areas or items that are under the ATOâ€™s spotlight this year, as other years, due to recent changes to rules surrounding these deductions. With changes comes an increased need to ensure your deductions and other tax-related items are compliant.
With Oncoreâ€™s contractor payroll solutions, one of the huge benefits is our focus and dedication to compliance. Our expertise behind payroll solutions ensures that any deductions you make throughout the year using salary packaging options are in line with any and all current taxation rules and legislation, keeping you free from taxation risk. By engaging Oncoreâ€™s payroll solutions, professional contractors benefit from flexible invoicing and payroll solutions to assist in managing their income.
Ensure your expense deductions are taken care of compliantly throughout the year and reduce the stress surrounding EOFY tax returns. For more information about how Oncoreâ€™s payroll solutions can assist you as a professional contractor, contact our team of experts today.