Tax Deduction and Returns Checklist for Beauty Professionals
As we slowly creep into another tax season, most of us can agree that it's not one of the favourite seasons of the year. However, you can follow the proper steps to make it as painless as possible. Of course, if you work with the right tax accountant, you can rest well knowing that you'll be guided throughout the season, allowing you to experience little-to-no issues with your taxes.
The great thing about working with a tax accountant is that, with their help, they can help you find ways to get a refund from your ATO. The way to get this is by ensuring all your claims are legitimate deductions. But you're probably scratching your head, wondering how you could do that, right?
You're essentially providing a service for professionals in the beauty industry, such as hairdressers, manicurists, cosmetic laser specialists, hair and make-up artists, and more. With that, you'll have an income state or payment summary that will outline your wages, allowance, and salary. However, there can be loopholes here that allow you to get some deductions.
Can I Claim Deductions and What Can I Claim?
You can claim deductions on your expenses during the financial year, but only on products or services, that's directly related to your income. In addition, you need to have spent your money yourself and shouldn't be reimbursed by your employer. To validate this, you need to keep a record of your expenses, such as your invoice or receipt.
If you're wondering what you can claim, below are a list of deductions you can claim as a hairdresser or beauty professional:
Items of clothing or footwear used to provide protection and are occupation-specific or compulsory uniforms. Besides that, you can also claim costs for laundering items;
Phone and internet expenses can also be deducted, provided that you use this for work and that the employer doesn't supply you with a phone, computer, or internet connection;
If you're getting further education, study, or training related to your profession, then this is also a deductible cost;
Journal and magazines connected to your industry and employment;
Equipment and tools needed to help you provide your services can also deduct your taxes;
Of course, you must work with a credible tax accountant to ensure that you're providing the right claims and information to ensure you get the right deductions and returns.
Are There Things I Can't Claim for Tax Deduction?
Yes, there are some expenses you can't claim, and these include grooming products of any kind if it's not work-related, long-distance driving or parking expenses when it's not for a job, training and education if it's for a new area of work, and tools or equipment that your employer has already provided.
The Bottom Line: Work with a Reliable Tax Accountant to Help You With Deductions and Returns
When it comes to dealing with your taxes, it's always a good idea to have professionals work hand in hand with you so you can find opportunities for deductions and returns. With their help, you might notice that tax season will start to feel like a breeze, eliminating that age-old anxiety towards tax season.
How Can We Help You?
New Wave Accounting houses some of the best tax accountants on the Gold Coast, so get in touch with us for all your bookkeeping and accounting needs. From financial planning to bookkeeping, taxes and accounting—we've got you covered.
Start delegating your bookkeeping tasks and work with one of our financial experts today!