Security workers play a very important role in keeping people safe. If you work as a security worker, you are expected to lodge a tax return at the end of the financial year.
There are quite a number of requirements which you are expected to meet. Additionally, there are tax deductions that you are entitled to. Sadly, most security workers and guards miss out on various deductions since they are unaware of them.
In this guide, we will go through all that you need to be able to file your tax returns and get your rightful deductions.
Guide to Tax Returns for Security Workers
The first thing you need is an income statement or a payslip. This is because the tax office will use the information on your income statement to calculate how much tax you should be paying.
If you have worked for more than one employer during the financial year, you will need to get an income statement from each of them. This is what was referred to as a payment summary.
Income and Allowances
Your tax is based on your taxable income. This is the total amount of money you have earned from all your jobs in a financial year, minus any deductions.
You may also receive allowances from your employer. These are amounts of money that are paid to you to cover specific work-related costs. They are not included in your taxable income.
Some of the common allowances paid to security workers include:
- Vehicle allowance
- Clothing allowance
- Risk allowance
- Tools and equipment allowance
However, it is important to note that there is a difference between reimbursements and allowances. Reimbursements are paid to you to cover specific costs that you have incurred. They are included in your taxable income.
Tax Deductions You Can Claim
There are two types of deductions: work-related deductions and private expenses.
Private expenses are not related to your job and include costs such as:
- Home office expenses
- Phone and internet expenses
- Clothing and grooming expenses
Work-related deductions are related to your job and can include costs such as:
- Union fees: If you are a member of a union, you can claim the fees you have paid
- Work-related courses and conferences: If you have attended any work-related courses or conferences, you can claim the costs
- Vehicle expenses: If you use your own vehicle for work purposes, you can claim the running costs
- Tools and equipment: If you have purchased any tools or equipment for work purposes, you can claim the costs
- Self-Education: You can claim the costs of any self-education courses that are relevant to your current job
As a security worker, you are entitled to a number of deductions. The best way to make sure you get all the deductions you are entitled to is to keep all your receipts in a safe place.
How to Claim Your Deductions
To claim a deduction, you will need to have a record of the expense. This can be in the form of receipts, invoices, or bank statements.
You will also need to complete a tax return. This is a form that you lodge with the tax office at the end of the financial year.
When you are completing your tax return, you will need to declare all your income and deductions.
You can lodge your tax return online or with a paper form. If you are lodging your tax return online, you will need to have a myGov account.
Get Professional Help
As a security worker, your work may be too demanding and as such, you may not have the time to file your tax returns. At Accurate Business & Accounting Services, we are ready to help you with your tax return and ensure all deductions are included. Talk to us today for more information.