Do you know you can claim meals if you work overtime? Protective footwear? Your work bag? Whether you work for a company, you are the director of a company or you work as a sole trader, there are items you can claim a tax deduction* for as a beauty therapist, cosmetic tattooist, lash technician or brow stylist against your personal income.
In addition to the usual items, you can claim the ATO has announced it expects to see an increase in businesses claiming for protective items for work due to pandemic.
“Taxpayers working in jobs that require physical contact or close proximity with customers or clients during COVID-19 measures may be able to claim a deduction for items such as gloves, face masks, sanitiser or anti-bacterial spray if they have paid for the items and not been reimbursed.”, said Assistant Commissioner of the ATO, Karen Foat.
Items you can claim:
- Footwear and repair of, protective clothing, laundering of uniforms
- Travel expenses, including using your own car, except for coming and going to your principal place of work
- Home office expenses
- Attending expos and competitions as a participant or visitor
- Communications; phone and internet
- Equipment, repairs, work bags
- Training, books, magazines, subscriptions, memberships
- Meals if you work overtime
- Beauty research
- Protective items including gloves, face masks, sanitiser, and anti-bacterial spray
Tax and COVID-19
If you have been receiving JobKeeper through your employer do not need to notify the ATO. These payments will have been processed through your employer and will be part of your Pay As You Go (PAYG) payment summary (often called a group certificate).
If your employer has paid you any stand down payments, this will be assessed as taxable income. Check with your employer if you are not sure if this has been included in your PAYG payment summary.
Sole traders and business owners receiving JobKeeper will need to include these payments as assessable income on their tax return. You are required to pay tax on these payments.
You will also be required to pay tax for income protection, sickness or accident insurance payments, redundancy payments, and accrued leave payments.
Early access to Superannuation due to COVID-19 is tax-free and you do not include this as part of your assessable income for the year.
Employers have until the 14th of July to issue PAYG payment summaries to staff.
*This article does not replace the advice of a certified professional accountant.