CONTRACTORs under the ATO’s radar

Contractors will be targeted to ensure that they are not really employees in the eyes of the ATO. Whether a worker is an employee or a contractor depends on the working arrangement and specific terms and conditions under which the work is performed. Factors to consider:

• • Control over work–Contractors can exercise their own discretion how their services are performed unless specified in their contract
• • Independence-Contractors perform only the services as specified in their contract
• • Payment-Payment is dependent on the performance of the contracted services
• • Commercial risks-Contractors bears legal risk in respect of their work and must remedy defects at their own cost
• • Ability to delegate-Contractors can subcontract or delegate their work
• • Tools and equipment-Contractors provide their own tools/equipment

Employers-make sure you categorise and pay your workers correctly.

 

Make sure you can substantiate ALL of your tax deduction claims.

Please contact me if you need assistance.

EMPLOYEES: TAX DEDUCTIONS

You’re entitled to claim tax deductions for some expenses that are directly related to earning your income. The expenses must not be private, domestic or capital in nature. If the expense was both work-related and private, you can only claim a deduction for the work-related portion.

You must have made the purchase in the course of earning your assessable income.  If you need to spend money to earn income, AND you have a receipt, you can usually claim it-either as an immediate deduction or over time (excluding to and from work travel, ordinary clothing, etc. – unless specific circumstances apply).

Items you may be able to claim include sunscreen, self-education, electricity, printer ink, protective footwear, subscriptions, accountants fee, political and charity donations, seminars, phone calls, laundry costs.

 

Make sure you can substantiate ALL of your tax deduction claims.

Please contact me if you need assistance.

FINANCIAL DIFFICULTY

If your business is in financial difficulty get proper accounting and legal advice, to increase the likelihood of business survival.

Some warning signs of insolvency are:

• • Ongoing losses
• • Poor cash flow
• • Incomplete financial records
• • Increasing debt
• • Problems selling stock or collecting debts
• • Unrecoverable loans
• • Creditor’s unpaid or paid outside of trading terms
• • Solicitor’s letters, demands, summonses, judgements etc.  Suppliers placing your company on C.O.D. terms
• • Overdraft limit reached or defaults on loans repayments
• • Problems obtaining finance
• • Overdue taxes and superannuation obligations

 
 

Make sure you can substantiate ALL of your tax deduction claims.

Please contact me if you need assistance.