Are you tossing up whether to claim for doggie day care, Tim Tams and pot plants as a working from home expense this tax year? Although it might sound tempting and can be argued as a possibility, it can lead to a tax time nightmare as you succumb to the many pitfalls in claiming working expenses.
A general rule of thumb in these instances would be that if you are uncertain; if it is a ‘yeah, nah’ situation, then lean towards the ‘nah’.
CPA Australia’s senior manager of tax policy, Elinor Kasapidis has advised that there is a fine balance between getting the best outcome for individuals and getting on the wrong side of the ATO.
With a huge influx of people working from home the past few years, the ATO has cracked down on illegitimate claims. The stress and delay caused by an audit, instigated by some of your home office decor claims might really not be worth the pain.
So although here at YBM we are constantly working to reduce what you need to pay at tax time, we are being extremely mindful of that perfect balance. If you’re unsure what would be alright to claim for and what wouldn’t, then do have a chat with us so that we can together go through your personal situation to carve out the most profitable and reasonable solution for you.
Working from home deductions such as claiming for rugs and plants to create better home office ambience, doggie day care and afternoon snacks are actually extremely common questions that individuals ask their tax advisor, so don’t be afraid to do so.
We understand the issues you face as a taxpayer, being taxpayers ourselves. We know that every dollar counts, especially as we face rising costs everywhere we turn. We also know that working from home deductions have come under intense scrutiny by the ATO recently, so that getting things wrong in this area can spell trouble.
It’s great to be able to speak with a trusted advisor who has your best interests at heart and who have really considered all options from every angle. Our insightful approach here at YBM will ensure that you can feel comfortable at tax time, whether you are a business owner, sole trader or something else entirely.
Since taxes are an annual thing, it’s important to talk about them and to be comfortable with what we know about it all. So make sure you get in touch with a team member at YBM if you would like to know more about what working from home expenses you can claim for this year.
Call our Orange office on 02 6362 1533 or our Molong office on 02 6366 8049 today