Don’t get caught out by the ATO when lodging your work related expense claim this financial year.
Unusually high work-related expense claims from any industry or occupation in the country are on the ATO’s hit list this year. The tax office has stated that it will be paying particular attention to claims that have already been reimbursed by employers or made for private purposes, such as travel from home to work.
Taking such a broad approach and using technology that can spot unusual or excessive claims will increase the ATO’s chances of picking up on those who make incorrect claims.
While there are some exceptions that allow taxpayers to claim travel from home to work, they are often taken advantage of by people who stretch the rules or simply do not understand them. These are the kind of taxpayers who run the risk of being picked up by the tax office when lodging a return with an incorrect claim.
It is vital for taxpayers who are unsure to seek professional advice regarding what they can claim and how much they can claim. It is also important that they keep a record of what they spend on work-related items throughout the year in order to substantiate what is claimed through their tax return.
For more information on work related expense claims and income tax returns, call our Newcastle office, Leenane Templeton Chartered Accountants and Business Advisors on 02 4926 2300