Tax office targets work expenses
It's that time of the year again. The tax year has ended and everyone's thoughts turn to lodging their tax returns.
About this time of year the tax office also steps up to the plate to highlight those areas which they will be keeping a particularly close eye on in the coming year.
In the past they have selected particular trades and occupations as the focus of their compliance activities but this year they've taken a different approach and highlighted particular types of expenditure which they will be putting in the spotlight.
These include work-related expenses covering:
- overnight travel
- transporting bulky tools and equipment; and
- the work-related proportion of use for computers, phones or other electronic devices.
That last one is particularly interesting because with the explosive growth in the use of technology over the last few years, combined with the increase in working on the move and at home, many millions of taxpayers will be making claims related to the use of a personal phone, tablet or laptop.
The tax office has also signalled that it will be looking closely at deductions claimed in relation to property investments
The message in relation to all deduction claims, not just the ones highlighted by the tax office, is simple.
Keep records. Whether it be invoices, bank statements or diaries, make sure you keep well-organised supporting documentation, first of all to help make the preparation of your tax return easier, and secondly, to avoid difficulties if the tax office come back to you to justify your claims.
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