Times have changed and technology seems to be taking over all industries. If you use your PC, phone or tablet for work, there are some tax deductions that you can claim. Let us look at the various options and the applicable costs that you can claim if you are an Uber driver or any rideshare like Ola, DiDi, Shebah, GoCatch, Bolt. driver.
Mobile Phones for Work
Did you know that Australia has more mobile phones than people? With the frequent use of mobile phones, it is rather difficult to define mobile phone usage for work and personal needs. Aussies who use mobile phones for work are eligible for tax deductions. When using your personal phone for work-related activities, you can make tax deduction claims. This will be for costs that have not been reimbursed by your employer.
The most important thing is to separate between personal and work-related expenses. The ATO is on the lookout for taxpayers who make higher claims than usual. It is advisable to have records that will substantiate the claims. In your records, you need to highlight the relevant phone calls that relate to work purposes. The ATO provides that if you occasionally use your phone for work-related operations, you can make claims. If the deductions are less than $50 here are rates that you can claim:
- For calls made using home phones, claim $0.25 per call
- When using a mobile phone, claim $0.75 per call
- Claim $0.10 for mobile phone text messages sent out
Please note that if you have a work phone provided by your employer or a bundled phone, you cannot make any claims for tax deductions. However, if there are additional costs included like exceeding the specified cap limit, you can make such claims.
Mobile Phone and Laptop Claims for Individuals
When you have to work from home, you will need a computer and a phone. The good news is that you are entitled to tax deductions in certain instances. A computer that is fully used for work purposes attracts tax deductions based on its value. However, if the computer is meant for personal and work use, you need to work out the percentage of the work activities, which you will claim in the tax deductions.
Freelancers who buy a computer to use for work can claim the cost of buying the computer in their tax return. This also applies to students who have to buy a computer for purposes of studying. It is always advisable to engage a tax expert so as to avoid cases of under-claiming or over-claiming your tax deductions.
Make Tax Claims as a Business
Do you have a small business, with a turnover that does not exceed $10m? You can claim a tax deduction for the purchase of assets that are not more than $20,000. This is referred to as an immediate tax deduction and applies to things like desktops, phones, printers and laptops among others. If the phone, tablet, desktop or laptop is used partly for business and partly for individual purposes, you will need to apportion the cost.
These are claims that need to be substantiated and as such, it is imperative to keep a record of the usage. The immediate tax deduction applies to both new and used assets that are acquired. You can also make tax deduction claims for the depreciation costs of your computer or phone.
Talk to the Tax Experts
There is a huge possibility that you are losing thousands of dollars through unclaimed tax deductions for mobile and computer usage. If you need help with tax matters, talk to the professionals at Accurate Business & Accounting Services and get your rightful tax refunds.