Hair Salon and Hairdresser Tax Returns and Deductions

There are very few people, if any, who are excited about the tax season. Generally, tax returns, claims on tax deductions, and other aspects of taxation seem to overwhelm taxpayers. However, this does not need to be a tormenting task. If you are a hairdresser or operate a hair salon, you will need the help of qualified tax experts. As a matter of fact, this can be a great opportunity for you to enjoy tax refunds from the Australian Taxation Office. There are so many legitimate claims that you can make and this will work to your advantage.

Hair and beauty is a very broad category, which includes manicurists, hairdressers, masseuse, make-up artists, barbers as well as beauticians and so many more. Whether you are employed or run a business with such services, you will have an income statement, which has a summary of all your incomes. Your income includes salaries, wages, allowances, and bonuses.

Tax Deductions for Hair Salons

Business owners who run a salon and employees who work in this industry are entitled to some tax deductions. Some of the tax deductions that you can make claims for include:

  • Equipment and tools
  • Insurance for business equipment and tools
  • Courses, competitions, and conferences related to your work
  • Travel costs for the business
  • Cost of protective equipment and uniforms
  • Hairdressing journals and magazines

Importance of Record Keeping for Tax Deductions

A good number of taxpayers are not able to get refunds from the ATO due to the lack of supporting documents. If you are planning on making claims for tax deductions as a hairdresser or hair salon owner, you should have all receipts and records in place. You can have digital copies of the receipts as long as the details captured are visible. Expenses that are below $10 are insignificant unless they will accumulate to more than $200. For purchases or costs that are hard to get a receipt for, you should make a journal entry with all the details.

What Expenses Can’t Be Claimed as Tax Deductions?

If you are in the hair and beauty industry, there are some expenses that are not part of the tax deductions to claim. Some of the expenses that you should not claim include:

  • Personal grooming products
  • Courses and training that are intended to help you get a new skill
  • When driving to and from work, you cannot claim such expenses. This will only apply if you are moving from one paying job to another.
  • Equipment and tools that have been provided by your employer

Can I Make Amends on My Tax Return When I Make a Mistake?

The general expectation by the ATO is that people will be careful so as to provide accurate information for tax returns. Providing the wrong information and failure to give the relevant documentation for tax deductions may attract penalties. The ATO has the mandate to prosecute people who try to make illegitimate claims. However, there are instances where you can make an honest mistake. You may have provided insufficient or incorrect information for the claims.

When this happens, you should get in touch with your accountant or tax expert. These are qualified professionals who will help you with the amendments and ensure that you are on the right side of the ATO. Always cross-check and verify your information before submitting your tax return to avoid such troubles.

Get Your Rightful Tax Deductions

People who are in the hair and beauty industries have a number of tax deductions that they can claim. Accurate Business & Accounting Services will help you with the tax returns and ensure that you are getting all your deductions captured correctly. Get in touch for more information. 

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