Something that’s universally despised across every industry – yet a requirement of every working professional – is paying tax. While this obligation might be everyone’s mortal enemy, it’s important for society and a thriving economy and all that jazz, but that doesn’t mean we have to like it. For tradies working for themselves or for an employer, it’s especially important to be smart about your tax and your finances to make sure you’re not losing more than you absolutely have to and you’re getting back what you’re owed.
While many tradies are more than capable of doing their own taxes, bookkeeping and other financial obligations, they generally have enough on their plate as it is without worrying about that added burden. Not only that, but a professional accountant will have had much more experience with tax structures, super, GST etc and will know how to get you the best return come the end of the financial year.
Tax tips – what you can claim for business expenses
Regardless of the trade you’re in, there are a number of things you can claim as a deduction on your tax if they’re solely being used for your job.
Don’t be a tool and claim – whatever tools of the trade you use, whether a screwdriver or hammer, paint and paint brushes, or office supplies and software for site admin, these are all expenses you can claim on your tax deductions. These tools are what keep you in business and what make you profitable, and as they can depreciate over time, this is also something you can claim up to costs exceeding $300.
Transportation – many tradies move around on a daily basis as their work takes them to different construction sites, customers’ homes, or multiple projects. The fuel you spend doing so and other expenses, such as car services and maintenance, are all things you can claim.
Mobile phone calls – most tradespeople rely on their mobiles as their main point of contact with their customers and have a separate device solely for that purpose. This allows a tradesperson to always be contactable by their clients and vice versa throughout the duration of their working relationship. This means you’re eligible to claim your mobile phone expenses on your tax.
A reputable accountant can keep your business profitable
Beyond ensuring you get a profitable return on your tax, having an accountant knowledgeable in the building and construction industry will be beneficial when it comes to organising your own business. They will be able to keep all of your expenses, profits, sales and assets in order, to ensure you’re not spending or losing more than you have to.