Home – New Forums Starting your journey Claiming Travel Expenses – Locum Optometrist

  • This topic is empty.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • #972530
    Shonit
    Member
    • Total posts: 6
    Up
    0
    ::

    Hi guys,

    I am a contracting/locum optometrist at the moment. I am based in Melbourne, and typically do 3 – 4 week contracts out of state at independent practices. I typically invoice the client at the end of the contract, and do supply them with my own ABN number.

    I know there is a lot of information here on Flying Solo, and on the internet in general, on claiming expenses while working as a contractor.. but, I still haven’t been able to find the answer to my question… (and it may be because it doesn’t exist!)

    I had a collegue mention that when you are away from home, it is possible to claim a ‘per diem’ rate or certain daily expenses as you are away from home.

    I have done a lot of reading, and it seems I am not eligible for the Living Away From Home Allowance exception, as I do not get paid an actual allowance.

    I understand that standard costs are claimable (flights, accom, taxi etc). But, Is there anything else like a daily per diem rate that I can claim for gerenal every day costs incurred by working away from home?

    Thanks for your help!

    #1056646
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi Shonit,

    Thanks for joining the forum today.

    I don’t know the answer to your question, but hopefully one of the number crunchers will pop in with some insights for you soon.

    All the best,
    Jayne

    #1056647
    hmirz
    Member
    • Total posts: 69
    Up
    0
    ::
    Shonit, post: 69500 wrote:
    Hi guys,

    I am a contracting/locum optometrist at the moment. I am based in Melbourne, and typically do 3 – 4 week contracts out of state at independent practices. I typically invoice the client at the end of the contract, and do supply them with my own ABN number.

    I know there is a lot of information here on Flying Solo, and on the internet in general, on claiming expenses while working as a contractor.. but, I still haven’t been able to find the answer to my question… (and it may be because it doesn’t exist!)

    I had a collegue mention that when you are away from home, it is possible to claim a ‘per diem’ rate or certain daily expenses as you are away from home.

    I have done a lot of reading, and it seems I am not eligible for the Living Away From Home Allowance exception, as I do not get paid an actual allowance.

    I understand that standard costs are claimable (flights, accom, taxi etc). But, Is there anything else like a daily per diem rate that I can claim for gerenal every day costs incurred by working away from home?

    Thanks for your help!

    Hi Shonit

    The daily per diem rates apply where employers pay employees an allowance for travel, food, accommodation where there perform work for their employer away from home.

    You seem to classify yourself as an independent contractor rather than an employee of any of the practices you perform work for. Accordingly, there are no guiding per diem rates that the ATO applies to your scenario or to independent contractors in general for that matter.

    From a pragmatic perspective, what you would do, is track, record and retain receipts for all the expenses you incur whilst working away from home and claim these as deductions in your income tax return (in the same manner you would do for flights etc). So in a nutshell, there is no general or per diem rate that you can claim, and if you want to claim deductions for the expenses whilst carrying on your income generating activity away from home city of Melbourne, be able to quantify those expenses with precision and retain records for substantiation purposes.

    Cheers,
    Hamid Mirza
    Barrister-at-Law
    http://www.panachelegal.com

    #1056648
    Shonit
    Member
    • Total posts: 6
    Up
    0
    ::

    Thank you for your quick reply and explanation. This does make sense.

    Just to elaborate a little further for clarification, being a contractor away from home, am I entitled to claim other things that normally at home I couldn’t (eg. Lunch meals, other odd ‘everyday’ expenses that occur). Or do they have to be specifically for the income generating activity (eg. flights, taxi to work, work meetings).

    Thanks once again,

    Shonit

    #1056649
    hmirz
    Member
    • Total posts: 69
    Up
    0
    ::

    Hi Shonit

    You wouldn’t be able to claim things that are private/domestic in nature as deductions in your scenario where you are not being provided an allowance for these expenses – i.e. you wouldn’t be able to claim lunch expenses, food expenses, babysitter costs etc when you are working away from home. These are all classes of private/domestic expenditure which have no necessary connection or nexus to your business activity as a locum contractor irrespective of whether you are at home or are away from home.

    So just to clarify, you would claim the same types of expenses you would normally would claim had you been performing your income generating activity at home i.e. there has to be a clear nexus between the expense incurred on the one hand and the business activity or income producing activity, on the other.

    Cheers,
    Hamid Mirza
    Barrister-at-Law
    http://www.panachelegal.com

    Shonit, post: 69619 wrote:
    Thank you for your quick reply and explanation. This does make sense.

    Just to elaborate a little further for clarification, being a contractor away from home, am I entitled to claim other things that normally at home I couldn’t (eg. Lunch meals, other odd ‘everyday’ expenses that occur). Or do they have to be specifically for the income generating activity (eg. flights, taxi to work, work meetings).

    Thanks once again,

    Shonit

    #1056650
    meocon015
    Member
    • Total posts: 1
    Up
    0
    ::

    again thanks… your post has good info…

    #1056651
    StellarScott
    Member
    • Total posts: 239
    Up
    0
    ::

    Hi Shonit

    For info

    The per diem rates for 2010/11 are here

    http://law.ato.gov.au/atolaw/view.htm?Docid=TXD/TD201019/NAT/ATO/00001&PiT=99991231235958

    The main advantage of the allowances regime is that your not required to have receipts if you receive but you are required to keep a travel diary for travel of 6 or more nights in a row

    You haven’t advised of your business structure. If you have a company set up, it may be beneficial to pay yourself a travel allowance when acting as a locum.

    If your a sole trader partnership then everything Hamid says will apply

    #1056652
    Shonit
    Member
    • Total posts: 6
    Up
    0
    ::

    Thanks once again for taking the time to clarify those aspects for me.

    Cheers!

Viewing 8 posts - 1 through 8 (of 8 total)
  • You must be logged in to reply to this topic.