Employees who do some work at home
If you have a dedicated home office, and you do some work from home, even if it is just checking emails, printing reports or doing work rosters -you may be able to claim a portion of:
home office running expenses, Internet and phone expenses as well as computer expenses.
If you work at home but don’t have a dedicated home work area, you cannot claim occupancy costs (rates, insurance, rent, mortgage payments).
Please contact me for assistance determining your eligible deductions.
Is it a Hobby or a Business?
A hobby is a spare-time activity or pastime pursued for pleasure or recreation; and
A business generally requires some form of investment and enough customers to whom its products or services can be sold on a consistent basis with a profit-making intention.
The distinction between a hobby and a business is important as the carrying on of a business requires a taxpayer to: declare sales income, claim tax deductible expenses, keep accurate records, register for an ABN and register for GST if turnover reaches $75,000 or more in the financial year.
If you are merely pursuing a hobby, you do not need to report the income from the hobby.
Go to my website for access to the Tax Office’s guide to determine whether your activity is a hobby or a business, or contact me for assistance.
Is your business viable?
Viability is defined as the ability to survive.
For a business, this is linked to financial performance and position.
A business is viable when either:
• It is returning a profit that is sufficient to provide a return to the business owner while also meeting its commitments to business creditors.
• It has sufficient cash resources to sustain itself through a period when it is not returning a profit.
If you are thinking of starting a business, it is important to do your market research, prepare a budget and forecast projections, as accurately as you can. If you are already in business, you have some figures to analyse to determine your business viability.
Please contact me for assistance.