Record keeping for work-related expenses this tax time
As a result of the impacts of natural disasters and COVID-19, the ATO expect there will be changes to what people in many industries claim in their 2019–20 tax return.
This may be an opportune time to review your claims to ensure they are applicable in the financial year.
If your usual pattern of work changes during the year due to COVID-19 or other circumstances, you many need to complete an additional record for the period your work pattern changed. This is particularly important where you calculate your claims using representative periods such as the:
- logbook method to calculate car expenses
- four-week representative period to calculate working from home deductions.
This year, it is expected to see an overall reduction in work-related car, travel and clothing expenses across many industries, such variations will be accounted for when working out your deductible expenses.
The Money Edge | Bundaberg