Home – New Forums Money matters Sole trader, what you can claim??

  • This topic is empty.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #986635
    rekim
    Member
    • Total posts: 2
    Up
    0
    ::

    Good afternoon all.
    I have recently started out on my own (I have an ABN) as a freelance Web Design, PHP, scripting, photoshop etc…
    I have looked over the web and this fantastic resource of FS for answers but some answers I just cant find.

    What I have read is that you can claim on expenditures such as petrol for the vehicle (I use to go see clients) – but not to sure on how much?

    Can I claim my mobile phone charges, office space (home office), i’m sure the list goes on an on. but I need to make sure I do things correctly.

    Thanks in advance.

    Regards
    Mike.

    #1158820
    Hatching_It
    Member
    • Total posts: 414
    Up
    0
    ::

    CLAIM EVERYTHING!

    Seriously though, see an accountant and get their advise. I’ve been meaning too but just too busy.

    I claim:

    Rent (study/office/garage space)
    Partial internet
    Phone
    Partial mobile
    All computer/printer/desk etc costs
    All stationary
    Fuel travelling to meetings
    Fuel driving to pickup products
    Accommodation if I stay in Sydney when picking things up

    The list goes on. An accountant will tell you exactly what to claim.

    Maclean

    #1158821
    nighttax
    Member
    • Total posts: 172
    Up
    0
    ::

    Hi Mike

    Under Australian tax law you are entitled to claim as a business expense, any expense incurred directly in the process of earning an income. There are also some other concessional expenses that can be claimed that your accountant will take care of. So basically record everything you spend on the business and your accountant will sort it at tax time and you will learn at that meeting more closely what your specific business is entitled to.

    Technically,
    – to claim home phone expenses you need to keep a logbook for 27 days to show what percentage of calls are business. Though very few people actually do it. (real world most people just claim 50/50 or 60% bus and 40% priv.
    – to claim electricity you are supposed to keep 1) a logbook for 27 days of the time your business equipment is switched and 2)you also supposed to have a list of the equipment you use and the hourly power usage. This is so the correct percentage can be calculated. (real world most just claim $150.00 per year as home office electricity expense.)
    – to claim motor vehicle expenses you need to keep a log book for 3 months and record the – start kms on the odometer – the kms you use for business during the 3 months – and the end kms on the odometer after 3 months. Then also keep all expenses recorded for Fuel, rego, Insurance, repairs, Tyres, Parking, Tolls for the year. Then your accountant will work out the percentage and see whether it is better for you to claim via this method or via the cents per km method.

    Usually clients keep the log records during the time they are using the phone, or elec, or car the most for business and the least for personal.

    Hope this helps.

    Regards
    Evan

    #1158822
    rekim
    Member
    • Total posts: 2
    Up
    0
    ::

    wow, thank you soo much. 100% clear, Time to get a log book for the car …

    #1158823
    TehCamel
    Member
    • Total posts: 873
    Up
    0
    ::

    training materials and industry subscriptions[magazines] related to the business function
    industry memberships
    industry publica
    software & actual computers (you probably know this)
    if you have a hosted staging server somewhere, you could claim that
    hosted email and domain name registration
    the website hosting
    online backupcosts, if you are backing up development work or company documentation (but not personal data, although you could pro-rata it)
    if you have people attend your home office, you can have artwork in your waiting room/meeting room (make sure you can prove this)
    postal costs for sending things to customers
    if you have a home office, and you had a cleaner, you could claim a portion that’s relevant
    minor staff amenities – coffee, tea, milk, maybe some biscuits
    stationary, pens, paper, notepads, whiteboard, whiteboard markers (for mapping concepts!) cds/dvds for sending data to clients

Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.