Organisation is key when it comes to tax time, especially when you’re a busy mumpreneur. The end of the financial year is just around the corner. By applying these tips from our 2022 tax guide, you can help alleviate some of the stress that comes from juggling a family and running a side hustle.
2022 tax guide
Educate yourself on deductions
It helps if you have a working knowledge of what you’re allowed to claim, that way you’ll know whether or not you have to keep the receipt when you make a purchase and don’t needlessly swamp your accountant with fanciful claims.
Keep detailed records
You might be able to remember all 30 names in your kid’s classroom, but don’t rely on your memory to recall the number of hours you spent working from home due to COVID or how many kilometres you’ve travelled for work.
Electronically file your receipts
There’s nothing more annoying than opening your shoebox full of receipts to find the thermal ink has faded. Streamline your tax process by taking photographs as soon as you purchase the goods and save them with the amount, date of purchase and the vendor, then file them on your computer. Using storing apps, such as Crunchr or Hnry, can help you stay organised.
Make sure your claims are legit
No one wants to be subjected to an audit, so make sure you don’t inadvertently claim for expenses you’re not entitled to. For example, when you work at home, you are entitled to deducting the cleaning of your office space, but this doesn’t mean you add in cleaning for your entire house and write it off as a tax expense. Also, claiming for travel expenses when you’ve been working from home may also raise a few eyebrows.
Disclose any investments
The ATO is all-knowing and all-seeing, so be sure to be upfront about your passive income from investments. A spokesperson for the ATO told Canstar that cryptocurrency will be under the microscope for the income year 2021-2022. There are harsh fines and penalties for non-disclosure of crypto that’s been bought, sold, or gifted to someone else.
Be aware of SMBE obligations
As a mumpreneur operating from home, even if hire your kids or next-door neighbour to letterbox flyers, or contract someone to do your social media, it’s crucial to be aware of your employee responsibilities. Are you meeting superannuation requirements? Businesses with a superannuation guarantee must pay 10% of employee contributions. If you can meet your contributions by 2022 early, you are entitled to claim a tax deduction THIS financial year rather than waiting until June 2023.
Get help from a certified tax accountant
Get help from a certified tax expert. A tax accountant knows all the latest changes to tax laws and will ensure you don’t miss out on what you’re entitled to claim. Things can get a little complicated if you are juggling a full-time job and side hustle or have exceeded the non-concessional super rates, so rather than stress yourself out, get help. The cost of an accountant is tax deductible.
Thanks to Gerry Incollingo from LCI Partners for the great tips! https://www.lcipartners.com/