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BUSINESS
EOFY TAX TIPS FOR HAIR AND BEAUTY By Mark Chapman, Director of Tax Communications for H&R Block Australia.
Nobody wants to pay more tax that they have to and the key to minimising your taxes is to ensure that you claim all the tax deductions you’re entitled to. If you’re a hairdresser, there’s a long list of potential tax claims that might apply to you. Not all of them will apply to everyone but it will pay to spend a bit of time running your eyes down this list to see which of them apply to you. THE GOLDEN RULES OF TAX DEDUCTIONS If you want to make a claim for work-related expenses, you need to follow the three golden rules: • The expense must relate to your work • You mustn’t have been reimbursed by your employer • You must be able to prove that you spent the money. That means that you must keep receipts, invoices, or statements to demonstrate that you actually incurred the expense. H&R Block’s tip is to keep electronic copies of all documentation relating to expenses. Paper receipts get lost or fade, so keeping everything together on your phone or computer will save time and effort when you come to complete next year’s tax return.
GET HELP
There’s a reason why nearly 74% of people use a tax agent to help them do their taxes. Tax is complicated and stressful and if you do it yourself, you’re likely to make a mistake. You might claim something you weren’t entitled to and find yourself audited by the ATO or you might miss out on a deduction you could have claimed but didn’t realise was available to you; the result is a lower refund than you could have got. Using a tax agent like H&R Block takes away the stress and opens up a whole world of expertise to guide you through the process, so you can be sure you’re claiming everything you’re entitled to. You wouldn’t generally choose to treat a medical condition yourself; you’d see a doctor so why should tax be different? Get expert advice and the fee will generally be more than covered by the bigger refund, and the peace of mind.
USING YOUR CAR
If you use your car as part of your work, for instance to travel to clients, between jobs, to expos or to collect supplies, you can claim the costs of your work-related journeys. If you use your own car, either claim 72 cents per kilometre up to a maximum 5,000 kms or keep 58
Beauty Biz Year 15 Issue 3
