New ATO audit focus in FY2021, let us help you to maximize your tax refund and reduce audit risk

Since the start of COVID19, working from home has became a trend.

Many of us would like to and are entitled to claiming work related expense of home office running expense. Now let EndureGo Tax, the leading accountant and tax agent in your neighbourhood help you to maximize your tax refund by claiming the eligible work related expense for you.

It is expected that the value of those expense will spike for the 2021 income year. However, taxpayers should be aware that if you had claimed the home office running expense or working from home expense, then you might not be able to claim some other expenses, like travel, might not be eligible. 

Australian Taxation Office had made a statement that their audit focus in the coming year would be working from home expense, personal protective equipment, clothing and laundry, self-education, car and travel need to pay attention to this article.

ATO has issued a warning to taxpayers who opt for “copy-pasting” work-related expense claims.

If you have been working from home, but still claim work-related expense such as travelling between work sites, or uniforms expense, ATO will target you, and ask you to explain. This is especially true if someone’s deductions are much higher than others with a similar job and income.

In our firm, as the leading accountant and tax agent in Sydney and Adelaide, we had helped numerous clients to maximize their tax refund. One of the client, he is a professional landscape artist, and every year, he needs to buy in excess of $20,000 camera gear, and we had helped him to get a private ruling outcome in favour of him, and helped him to get a tax refund in excess of $10,000 each year, and his audit risk also had reduced significantly as well. If you want to claim more work related expense, but don’t know whether it is safe to do so, please come and talk to one of our professional CPA Accountant, and we will guide you along the way.

Coming to think about this, does that mean Australian Taxation Office would expect or think it is a norm that when people work from home, they do not need to dress up, maybe just wearing a sleeping gown, and not even brush the teeth.

But, for taxpayers whose jobs require them to come into physical contact or close proximity to customers or clients, items like gloves, face masks, sanitizer and anti-bacterial spray may be claimed as work-related expenses.

However, to claim Personal Projection Expense, a taxpayer must have used the items(s) for work and paid the upfront cost themselves, the ATO said.

“You can’t simply copy and paste previous year’s claims without evidence. But we know some of these unusual claims may be legitimate. So, if you are confident that during the audit time, you can explain to us about those expense, and we can accept, then there will be no penalty, however, if we can not accept the evidences, then not only we have to disallow the expense, but will charge shortfall tax penalty to those clients.

If you are not sure about how much you can claim related to working from home, come and visit us. As the leading accountancy firm in Sydney and Adelaide, we can help you. Our national number is 1800-841-312, give us a call, and we can sort out the tax burden for you.

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