Please see some common errors when it comes to claiming business expenses in your tax return.

  • If you use your motor vehicle entirely for your business, you can claim a deduction for the whole amount. If you use it for a mix of business and private use, you will need to apportion the expense and only claim the business portion.
  • You must keep your business expenses separate from your private expenses such as private rent, fines, travel, food and renovations of a private residence.
  • If you are upgrading accounting software, it is important to check that business and private expense codes are correct.
  • Your business expenses must be claimed at the GST exclusive rate if you are registered for GST, not the GST inclusive rate.
  • If you operate your small business as a company or trust, paying private expenses from these accounts may have other tax implications such as fringe benefits tax and shareholder loans.

We can help you to get it right, for more information contact us today at Arora Accounting Services your local Accounting Services in North Lakes.  Please ensure you need to satisfy the following three golden rules:

  • the expense must have been for your business, not for private use
  • if the expense is for a mix of business and private use, you can only claim the portion that is used for your business
  • you must have records to prove it.

Credit: https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/Reducing-errors-when-claiming-business-expenses/

For More information contact us today at Arora Accounting Services your local Accounting Services in North Lakes.

Call: 0426 199 277