Work Related Expenses
The Claiming of work related expenses can be very complex, what can I claim?, Where do I claim it? , Can I Support the claim? These are all very relevant questions and important to get right if your return is to be accurate and ensure that you maximise your return whilst adhering to the tax law. Understanding the below is vital and what Jeffkins Accountancy Specialises in.
So what are some types of expenses that can be claimed:
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Work relate travel using your personal car
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Laundry and purchase costs of compulsory uniform and protective clothing
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Training & education that has a direct connection to your work
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Home Office usage
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Business use of your home phone, mobile and internet
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Union fees
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Professional memberships
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Business usage of computers, iPad and laptops
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Tools and equipment used for work
A deduction is allowable if you can show that an expense:
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was actually incurred
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meets the deductibility tests
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satisfies the substantiation rules.
Actually incurred
The expense must have been incurred in the relevant income year (for example, to claim a deduction in their 2023 income tax return, they must have incurred the expense between 1 July 2022 and 30 June 2023).
Deductibility test
You must, in the first instance, be able to show that work-related expenses were incurred in the course of gaining or producing assessable income and are not losses or outgoings that are of a capital, private or domestic nature.
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For an expense to be allowable as a deduction, you must be able to show:
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the essential character of the expense is income-producing
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there is a nexus between the outgoing and the assessable income in that the nature of the outgoing is incidental and relevant to the gaining of assessable income, and
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there is a necessary connection between the particular outgoing and the operations or activities by which your client more directly gains or produces assessable income.
Substantiation
You must demonstrate that an expense is allowable, and then substantiation rules must be met.